Faust Avenue Is Now Underway!

Today was the closing on Faust Ave. When I walked into the title company, I was greeted with a smile and a handshake and then I got that “feeling” … you know, déjà vu! I recognized the face and then I asked, “You look familiar, have we met before?” Then suddenly I realized that Leo had done the closing for the purchase of my last project, Curie Court! It’s a small world. I bet Tri-County Title Agency handles a lot of these REO closings.

It was just Leo and me in the conference room. I left the lockbox from Faust with Leo who promised he would drop it off with my Realtor, Jay, when he drops off some other paperwork later in the week. It was so fast and so convenient I could hardly believe it. Leo even records the deed at the county for me as a courtesy! My first closing on my first project two years ago took about an hour - painstakingly going through every line of every document, yawn ...

My second closing was about 30 minutes, with half of the time spent chatting and joking with Ray Reck (the broker) and Leo, himself. There really aren't that many forms when buying an REO property.

Of course, this was my third purchase so it’s becoming old hat now! Leo and I breezed through the signatures, made copies, and I was on my way in about 20 minutes!

I didn’t waste a minute moving forward on this project. Will started the work the same day of closing and the landscaper has already done his part, too -- except for the retaining wall in the front yard. I’m holding that part off till the roof is complete, which, hopefully, will be done by the end of this week and then Jeremy can finish the retaining wall next Monday, July 7. That's the same day, by the way, that I'm going to set my For Sale sign on the front lawn and start my marketing campaign to attract buyers.

This project is expected to take 6 weeks (more or less) with a contractual agreement to a “drop dead” completion of Saturday, August 16 as a grace period to handle any contingencies that may pop up.

It is my hope to have a buyer locked in a purchase agreement by the end of August or mid-September at the latest. (Just like I did with Curie Court!)

Let’s watch and see if I can have a repeat performance with a slightly better return on investment. This property qualifies almost as a “junker” according to Mark Ijlal because of the amount of water damage to the property and the amount of mechanical repairs and upgrades being put in. There are too many properties on the market, Mark contends, that need only carpet and paint - why waste time and effort with any rehab project more than $20,000? Well, if the profit margin is acceptable to me and since I'm not actually picking up a paint brush or a hammer, then I’m comfortable with doing things differently. If I find a good property during my searches that needs only carpet and paint, then maybe I'll do that one. But I'm not going to spend all my time hunting for the perfect Easter Egg before I make a purchase decision and start moving forward. Different approaches for different investors.

Stay tuned ...