House #46: First Contract

November 10, 2013 · 9 comments

The WI-4 House has been listed for nearly 4 months now, without a solid offer. We’ve received several low-ball offers, but nothing that we’ve been willing to accept. We’ve dropped the price three times, and we’ve also spent a few thousand dollars to spruce up the exterior (painting, landscaping, etc)…here’s a pic:

We finally negotiated a contract that we’re happy with, albeit a good bit below where we originally were hoping to sell. Not to mention that we were thin on this deal to begin with, it appears this could be the first project in 5 years where we actually lose some money — though hopefully not much. The sale is contingent on the buyers being able to sell their personal residence first, but they’ve received a strong offer on their house over the weekend, and we’re hoping that deal gets done quickly so they can turn around and purchase our house.

I’ll have more to say about this one once the buyers get further along in their sale…

9 responses to “House #46: First Contract”

  1. Nicole Pettis says:

    Its amazing that it is taking this long to sell this property. It looks fabulous. Do you have any idea why?? Do you think it could be the season?

  2. Jessica Sala-Bonin says:

    Ehhhh..Hope you guys can turn it around a bit somehow!

  3. Derreck says:

    Hey J, I have a question that doesn’t pertain to this particular case. First off, I want to say that you are a great inspiration to me and I’ll definitely be using both of your books as my “Bible” in my real estate business. I have a friend of the family who’s very wealthy and she’s willing to finance my first deal. She asked me for an exit strategy if I weren’t able to sell my newly rehabbed house. Of course I would rent the home out and pay her back, but I didn’t know how to articulate that in a professional sounding way. I told her I would get back with her with an answer. Could you please suggest a way I can respond to her question with a substantive response without losing out on this cash before I get it!? Thanks, J.

  4. J Scott says:

    Hey Nicole,

    I’m not sure why it took so long to get this one under contract. We actually found that most of our Milwaukee properties sit for longer-than-average time periods — and in general, day on market (DOM) in Milwaukee tends to be a lot higher than what I’ve seen in other parts of the country. I think it’s a combination of a lot of factors, but in retrospect, I’m still a little surprised it took so long.

  5. J Scott says:

    Hey Derreck,

    If you want to use a backup exit strategy like renting, you’re probably going to want a backup financing strategy as well. This would typically consist of getting a bank loan to refinance the private money loan and to pay back your private lender. If you’re not in a position to qualify for a bank loan should this happen, that’s something you should be upfront with your private lender about, so she knows the risks associated with the loan. Perhaps she’s willing to extend the term of the loan should you not be able to sell? Perhaps she’d be willing to co-sign or lend you the downpayment money should you not be able to sell?

    If there are no other good options, you should consider other alternate exit strategies that she’d be okay with. If you can’t come up with any, it’s important to have this discussion with her, so she understands the risks and there are no surprises later. Unfortunately, there’s no “right” answer to the question of “What if…” scenarios, so I would recommend just having an honest discussion and try to come to an agreement that satisfies both of you.

  6. Casey Aghjian says:

    I am a neighbor to this house and was just wondering if the sale went through.

  7. J Scott says:

    Hi Casey,

    We’re scheduled to close on this sale at the end of this month. Any other questions, feel free to shoot me an email (

  8. Casey Aghjian says:

    Can you tell me who the byers are and their family members? Curious if there will be and kids matching mine in age!

  9. J Scott says:

    Casey –

    I sent you an email…

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