Help! We found a great +CF property which we have
currently under contract. We were very excited to begin this +CF journey. However it has not all gone to plan. A few things are not satisfactory to us, we can easily pull out, and most likely will.Now I feel despair and wonder if it is all worth it. I had my heart set on another property, which would have been +CF #2, only to find it was a computer error, and not actually for sale.
This is my first appearance on this forum. Do
others have any advice, and how does one pull up from dissapointments and keep going??Hi Mig,
Congratulations on taking the first step – there are many people who cannot, for various reasons, make that move.
With respect to the first property – you need to ask yourself are the ‘unsatisfactory’ matters simply cold feet or more significant issues such as white ants, major maintenance or finance or………
If they are simple a case of ‘cold feet’ then you need to revisit your original reasons for selecting this particular property and if the reasons still hold then ……….
If, on the other hand, there are costs involved you need to factor these into the whole picture and see if the increased costs still make the deal viable. Bearing in mind that if you have found two properties you can always find a third and a …..and so on.
As for IP2 – it happens get over it and move on. In all honesty if that is the worst thing that is going to happen in property investing (and it won’t be) then you are home and hosed.
You’ll find that as you progress along your journey that it is not always smooth sailing and if you are going to throw your hands in the air and cry foul everytime something goes wrong then you could be in for a lot of arm waving.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Thanks Derek for your reply.
No, we havent got cold feet, the property we found has a problem that we could fairly
easily solve to increase an already profitable situation. However, information we requested from the vendor on the current lease situation is far more involved than we were initially advised.Also, he is unable to provide standard documentation that we require to protect ourselves from any undesirable tennant activity. Without going into too much detail, there is an increased risk of this.
Also, after receiving the green light from the bank, they have revisited the situation, and require now a 30% deposit. The returns on a 30%
deposit just arent there to make it worthwile.So basically the deal isnt so viable anymore…
Originally posted by Mig:So basically the deal isnt so viable anymore…
Based on your comments and research I believe you have covered all bases and should be ‘congratulating yourselves’ rather than feeling blue. The processes you have employed to date have identified issues with this property and thus increase your chance of long term success.
That’s a good thing, isn’t it?
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
I guess we should be congratulating ourselves, as you say Derek.
The first +CF property is a milestone for us, we have been disposing of -CF properties, and shuffling finances and other properties to get to this point. We have so many goals to achieve, and want to get moving! It is a little frustrating, we didnt forsea some additional problems, and they werent disclosed. I guess we are fortunate that we have found out now, and not too late.
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