She called me last night to tell me that she is now under contract with someone else!
I think I figured this one out... During the first conversation , she told me that someone had offered her 50k cash for the property, but she felt that was too low so she invited me to take a look at the property.
The next day I looked at the property in the morning (Sat.) and than made the final offer in the evening . I had already setup the seller financing idea, I just didn't commit to solid numbers. My offer was made 5:00 pm (Sat.) and she needed to talk it over with the husband.
She called me back at 8:00 pm and told me we had a deal. I setup an appointment for 12:00 pm (Sun.) to sign.
She called me up in the morning to postpone the meeting until 2:00 pm because she need to do something (Now I know what she was doing).
1:45 pm she tells me that another guy in interested and needs to call me back later in the day to tell me what she decided.
I got the call last night around 7:30 pm that she signed w/ someone else.
Ok, so I think I understand what happen.. The guy that who made the original offer probably is the one that is closing with her. So I forced him to buy the property at a 10k higher price. I thought my offer was solid because she commited to the deal Sat. night and she was leaving the state on Monday so she didn't have time to find another investor!
However, my mistake was that I forgotten about the original 50k offer so time was still the essence. And I didn't give her the "ok we have a deal no more investor speech"..
As properties goes, this was so-so because it was a mobile home affixed to a lot w/ a 1000 sqft addition. It was a pure fixer-upper. As a fix and flip the numbers are poor, however, the financing made a a excellent deal long term. Shit, after 5 years as a rental the loan would have been paid down to 35k!
Comps was non existent so I had to go off of two MLS offerings, and one comp from last summer. The confidence in the comp value was not high, however, the addition and covered garage showed a lot of potential.
Clearly a long term stategy is a no brainer. I was going for lease option w/ no rental hadaches. However, the tenant -buyer financing was going to be a huge issue. There would have been very FEW banks willing to finance a 80k property w/ a 1963 mobile home.
Profits would have been at least 25k-30k.
Until the next one!