Selling and Moving On With Life!

Last week we closed on our own home that we bought in 2003 and spent much of the past 4+ years in. The closing was fairly easy, but it was the end of a meaningful season in our life and the beginning of new ones.

We had spent those 4+ years living life and growing up. We had our first two kids while living there and saw them start walking and talking. We had hard times and wonderful times. It was life.

The house played a very central role through this time. It was a fixer upper that we bought from a seller avoiding bankruptcy. A wood sided 1920's bungalow in East Nashville with overgrown bushes and chipping paint everywhere. Lots of old trim & windows. Character and charm in every room. It had been through seasons as a duplex and suffered much neglect- but it was "livable"- at least to a young couple wanting a challenge to conquer...

Before/After Photos

We first moved into the dining room while we gutted and renovated the upstairs. This had to happen quickly because my wife was pregnant and we wanted to move out of the dining room! After this we started working downstairs and slowly finished a room at a time. I became a roofer, painter, electrician, foreman, plumber, tiler, landscaper and more!

The final phase began when we moved out of the home last July and were able to gut the kitchen and rooms along the back of the house that needed major work. We refinished floors and had the exterior repainted. There's a lot of me in that house. I became to be good friends with it.

It was quite gratifying to see our vision for the home become reality- to see the job to its successful end, to finish well.

This article may be part of a some kind of grieving process, but it's been a very real transition in our lives. I want to make note of it and remember the emotion, because I work with clients all the time who are experiencing many of the same things. Seasons are changing. They're moving up or moving down. Taking risks or removing risk. Staying close or moving far.

It reminds me again what makes a house a home. It's where LIFE happens!

-Peter

www.NashvilleCityHomes.com

Real Estate Music?

Today was a flurry of last minute chores in preparation for a couple closings next week. I had amendments to fax, tile contractors to meet, and wiring instructions to coordinate. For some reason it reminded me of my years in the music business.

How, you ask? Well, it's kind of like preparing for a new production or a live concert video. To pull it off, a lot of different things must come together- and it's usually a little crazy. (That's an understatement!)

The satisfying part comes later, when the music begins or the closing happens. It's a creative process. We have to work together to make something that we couldn't do on our own.

I usually don't get so romantic about it, but once in a while I pause to consider what an honor it is to do what I do to bring people together to an end that benefits all involved.

I guess you could say, we're making 'music'. :)

-Peter

www.NashvilleCityHomes.com

An (Unnecessary) Foreclosure Victim

I was sad to see a new listing pop up this week. It was one of my previous listings that had since been foreclosed on and was now for sale by the bank. The sad part is that the bank foreclosed even though I had sent them a legitimate offer as part of a short sale.

It was the classic case of getting the runaround from the bank. We listed the property and got offers. I had all the paperwork in order and had jumped through all the hoops to submit the offer to the lender- one of the big players in the sub-prime loan game. However, once it was ready for the banks consideration- no reply.

Worse, when I called them to check on the status (enduring excruciating hold times), if I ever talked to a human they would tell me that I needed to talk to someone in a different department and then proceed to give me the exact phone number that I had just called in the first place.

I don't want to scare you away from attempting a short sale or trying to buy a house this way, but just be prepared to wait. It's not uncommon to wait weeks or months waiting for a response from the bank. In our case, the seller apparently didn't have that kind of time.

I know that the bank's 'loss mitigation departments', as they are often called, are completely swamped at this point. I suppose we may have been moved to the top of the heap if this was a high dollar property. Still, the home was a really big deal to my client and I'm sorry to see it end this way.

-Peter

www.NashvilleCityHomes.com

Are You a Consumer or Investor?

I was rereading parts of Gary Keller's book, The Millionaire Real Estate Investor (MREI) last night. What an incredible book.

What always strikes me is Gary's description of the Investor mindset and how it differs from the Consumer mindset. He says, "Do you work for money, or does money work for you?"

Obviously, we all have expenses and consume things, however, what principles and priorities guide our spending? The difference is in how an investor thinks, making short term sacrifices for long term gains. For example, buy a less expensive car and put that money toward investments. Cut back on lifestyle expenses so you can reinvest your cash flow.

As Dave Ramsy says with much gusto, "Live like no one else so that later you can LIVE like no one else!"

If you need some encouragement, you should get the MREI book and read pages 151-156 where Gary goes through a simple and very conservative investing strategy that shows how you can start small, but end up with a huge payoff if you can follow the plan.

The plan is the key. If you're thinking of investing, it's so important to know what you're doing. Otherwise you may fall prey to speculation and loose your shirt! However, don't be afraid to take steps and learn along the way. You too could enjoy a huge payoff down the road.

-Peter

www.NashvilleCityHomes.com