Jacqueline Dane Rehab Deal

 

Jacqueline Dane Rehab Deal

Dane Property Investments LLC in Kempner, TX
Jacqueline Dane with Tanner Dane

We found this property on the Coryell County foreclosure website. The property was owned by a disabled veteran who recently had a stroke and was unable to work. He was unable to pay his mortgage, his truck was repossessed, credit cards maxed out and his family and friends were unable to help pay what was in default. The easiest and fastest way we could close before the auction date was to do a Subject-to and pay the default amount, make the loan current, rehab, and sell. We agreed to find him a small apartment that he could afford, we agreed to pay his security deposit, and first month’s rent and help him move. He was shocked at how generous we were. After we closed, we hit almost every obstacle....everything that could have gone wrong, went wrong! We found out that our 25,000 credit limit from Home Depot had been reduced to 5,000. So we had to find money elsewhere to fund our supplies for the rehab. Our 15,000 cap line was about to mature mid-rehab but First Citizens Bank is amazing and increased our cap line from 15,000 to 25,000. Our first contractor team was a complete mess. They sprayed textured over everything, we had to completely redo the master shower because they did not water seal it, there were many delays and cost us a lot of money to fix what they had already done. We hired another painter to correct all the texture work and after I gave him his first payment, he went and bought drugs with it and his cousin called us and said he took a hammer to the inside of his apartment while he was high.....so we fired them too. We hired another contractor team and they did great work. They corrected all the bad texture and made the shower beautiful. However, central Texas got hit with a bad storm and it dumped rain on us for a week and water started settling by the house (about 4+ inches). We tried to correct it by installing drainage of some kind (a French drain) but it wouldn’t dry up enough and we were unable to install it. When we got ready to resell, the buyer\\\'s agent was actually the wife our contractor. We didn\'t think anything of it but it ended up being a BIG BIG mistake. Since we had originally wanted to install the French drain, we had it in our contract, however, it just kept raining. I explained to my listing agent that we may not be able to install it because the ground is just soaked in water but we agreed to escrow 1,000 to cover some of the cost of the installation. The buyer\\\'s agent immediately started negotiating with threats and saying we are in breach of contract if we don\'t install the French drain. I explained again that I can\'t make it stop raining and I am trying to find another solution to the problem. The buyer \'s agent didn\'t care and continued with her threats and telling the buyers that they could take us to court and sue for damages. Since the rehab wasn\'t finished (another mistake) we were so crunched for time to finish the rehab and we asked for a 2-day extension and the buyers did not agree....eventually they gave in. The buyers kept coming by the property unannounced and without their agent and the rehab was still not done. I told them to leave. After closing and everything went through, the buyer went on our Facebook page and said that she wouldn\'t recommend working with us and that we basically are only interested in making more money and that we wanted to break the contract (we paid all their closing costs). Then the buyer went to my listing agent’s business page and wrote a nasty review on her as well. It was a mess. Our ROI wasn\'t what we had hoped but we didn\'t lose money. It was a success because we learned a GREAT GREAT deal in just a few short months. We are so ready to take on the next rehab. We are going to CRUSH IT!!! By the way, since this deal was a Subject-to, we could not find a lender that would be in the second position to fund the rehab. So we funded the entire rehab and holding cost ourselves...all 50,000 of it.

Rehab Details

Property City: Copperas Cove
Property State: TX
Purchase Price: $38,751
Repair Costs $62,000
Sale Price: $120,000

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Case Study

How did the FortuneBuilders team and resources help you to accomplish this deal?

Our first deal was a subject-to. We would not have been able to do this without the education from FortuneBuilders. The 6 critical documents saved us.




Before & After Photos