In life, there will be obstacles. There will be events that don’t go according to plan. I have found that far too many people use this as an excuse to say, “it didn’t work for me”. So then what’s the difference between someone who gets derailed and the people for whom a tactic, strategy, or investment DID work out? The steps are exactly the same for both people, after all.
The difference is simple. When obstacles reared their ugly heads, the first person gave up and the second person kept working to find a solution.
For most of my life I have been that first person, giving up when opportunities were “too scary” or “too risky” even if I had done my due diligence. I am still that way in a lot of ways, but I am trying to be more like the second person.
There was a minor hiccup along the way with Property #2. It was really sill and insignificant. It had to do with my current rent. I have mentioned in a previous post that I only pay $875/month to live in an Upper West Side apartment. I landed this sweet deal because I moved in with roommates. However, the mortgage lender was pretty myopic when looking at the OVERALL monthly rent of $3750 and because of a technicality, wouldn’t concede that I only paid a small portion of that. Given this crazy rent, they would never approve me for a loan, thinking that I could never pay it off.
Of course, I was angry and confused. I had never in my life as a NYC resident had a LOWER rent and ironically, rent was the issue. A former version of myself would probably have given up and thought that this deal “just wasn’t in the cards for me”. However, I kept working with the lender and after a letter from my current landlord here in NYC and confirmation from my other roommates, they somehow squeaked me through the loan process.
At this point, once I was approved and the house was fully rehabbed, I should have gone on to the next step: getting an outside company to do an inspection. For property #2, this actually slipped through the cracks at this point and I had to hustle to get an inspection when I was deeper into the process. So, word to the wise. Get this as soon as you know you want to move forward with the purchase and the bank has approved you.
Getting a third party to inspect your property is crucial. For both Property #1 and Property #2, the inspector found a HOST of issues that needed to be corrected. The turnkey company was happy to send out a contractor to take care of these issues, but the responsibility is definitely on you to make sure that the house is in tip top shape before you close on the property.
In the next Turnkey Real Estate post, we finally close on Property #2! However, that will not be the last post in the series. There is more to do, even after closing.
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