January has been a good month so far, but a rollercoaster of emotions. We completed our home in Menasha and I felt a little uneasy about its sale because of the uniqueness of the property and the corner lot. It's the first house that we didn't sell in a week or less! However, I showed it to a woman on Sunday who loves it so much, she broke down in tears as my next showing pulled into the driveway because she didn't want me to sell it to anyone else. Today, she is going in to check on financing. She works 2 jobs and doesn't have any time during the week, but I am showing it to her son along with her again this Saturday and we will be writing an offer (she will have her pre-approval letter and financing all ready to go by then). I'm praying for this to come through so we can pull the massive amount of money we have tied up in this project out and get moving on others.
This Friday, we should be finished with the light rehab we did on our first giant house in a higher price range. The home is 2300 sq ft with 4 beds, 2.5 baths, and a full unfinished basement. This was one of those calls that just blows you away when you get it...the guy gave me 100% of his equity on this 15 year old home just to be able to walk away and start clean! He sold it to me for $50k less than he bought it for back in 2002 and it's worth $15k more than he paid for it back then!!! Since it was built in the 90's it looked like the 90's so we replaced all the hardware and light fixtures in the home to get rid of all the brass (yuck!), changed the spindles on top of the cabinets to crown molding, took all of the lattice off of the windows, repainted, and put in all new flooring. Now, we're priced at $32k below the FMV according to the tax assessors office and about $20k below real value. It's still a pricey home for the times, but we are confident we will get a buyer. It's a lot of house for the price, the yard is massive, and it's located on a cul de sac! We pray it sells fast.
We are also in full swing on our other rehab in Kaukauna. This home is all done outside except powerwashing the garage. The inside is almost completely gutted...we just have a few finishing items left to be taken out. The electrician is coming today to remove all of the old wires and start pulling new, and our contractor will be there all day putting in new floor joists and framing the walls we need. We plan to have this property finished by the end of Feb or 1st week of March. I have already gotten some good interest in it from our website and expect it to also sell pretty quickly!
MONEY...we have also been having a good year so far with private money. We can always use more, but I have a couple of people getting their retirement funds switched over to self-directed so that they can lend to us so that should be available in about 6 or 8 weeks. I also have a couple of others who have agreed to sit down with me and go through my presentation to see how it all works! This is an area I will not stop fishing for. It's out there. I am thinking about also getting the unsecured line of credit lined up for emergencies. I'd hate to miss out on a great deal or have to have one of my students pass on a deal just because all of our money was already being used. This company guarantees a minimum of $100k line of credit with no personal guarantee whatsoever. They never even asked for my social security number. I'm having them do a live webinar at our REIA club meeting next Wednesday so we can all hammer them with questions. After that, I will likely try them out and get a LOC for backup. My only hesitation at all is that I don't like to make monthly payments. I'm working that out in my brain right now.
