Reflections


by Dave Miller

The past month has been an amazing one in many ways. Since this blog is about real estate and business I’ll stick to those, though some remarkable things happened on the personal side.

On the last Friday in October I signed a contract for the sale of 347 W King St (Click here to view the property). The contract is contingent on the buyer being able to obtain financing. This hinges on the appraisal as the buyer’s credit is excellent.

The bank will send out an appraiser to evaluate the property. Of course whenever a contract is contingent on something it makes me a little uneasy. “What if the appraisal isn’t sufficient?” runs through my mind. My broker has assured me this is needless fretting as the property is fairly priced and well within the market value. But I still say, in this day bankers and appraisers are fickle creatures. Their capricious favor leaves some edginess in the air.

The appraisal went through with flying colors. Words of thanksgiving flow from my heart.

Now the buyer and I are negotiating a cash deal instead of the agreed upon seller financing. I would be willing to give a small discount rather than take the note. We will see what the outcome is. Either way it will be a good deal for both of us. I would not give a large discount because the buyer is credit worthy and it would be foolish to discount it heavily with such a strong deal.

I had settlement on 502 Beaver St. This was a wholesale that I flipped in a few days. (More on that here)

Finally I schedule the exam for my final test to become a Realtor. Anxiety consumes the day. A train ride gets me to Harrisburg followed by a short taxi ride. Then the test. Three hours of sheer agony. I hit the submit button still feeling queasy. The first test I felt confident on but the second one my gut says I will be back to retake it. I am shock at the results. I passed both! A spoken yes escapes my mouth in the otherwise silent test room. Shocked, yet jubilant.

I head straight to the license center. My paperwork is already filled out to hang my license with Shepherd Real Estate LLC. Ten minutes later I walk out of the building with license in hand. I am elated.

Within a week I have my first listing. This is a 24 unit property I am a partner in. We were wanting to put it on the market as soon as I get my license. Well, here it is, click here to view.

In one week we had a few showings and a few offers. Though we did not accept the offers, this is more interest than we dared hope for.

Now this week I signed up another listing. I feel like a racehorse busting out of the gate. My spirit running free. Having one and a half million dollars listed in two weeks is exponentially better than my humble aspirations when I started the Realtors class. I thank the Lord for everything that is good.

This new property is in Paradise with a nice mix of commercial and residential. It is very reasonably priced and yet has 2000 sq ft of unutilized space. We are marketing the 2000 feet of office space for $8 a sq ft. This makes for a very attractive deal for an investor. Currently the property offers an 8.2% cap rate and the potential of over an 11% cap rate once the upstairs is rented.

I grin at the fact that the majority of people say real estate is slow and yet I have never been busier or having more fun in it.

Thankful I am.

Published in: on November 26, 2010 at 7:59 am  Comments (1)  
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