Buyer had the criteria, the cash, and no room on his credit line. I lost the earnest money anyway.
Locked a 3/2 at 148k against a written buy box from a buyer who closed nine houses last year. He passed on day nine because his lender wouldn't fund a fifth concurrent project. I never asked how many he had open.
The box, dated and sent to me in an email:
- 3 bed 2 bath, 1,100 to 1,600 sq ft
- built 1965 or later, no septic, no pool
- four zip codes he named
- ARV ceiling 240k
- max all-in 72% of ARV minus repairs
I hunted that for seven weeks. Found one, comps supported 232k ARV, repairs came in at 34k on a contractor walk, so his ceiling was about 133k. I got it under contract at 148k. That was mistake one. I told myself the ARV was conservative and I'd eat a smaller fee to make it work.
He liked the house. Then he told me he had four active rehabs and his lender caps him at four until one sells, earliest six weeks out. My inspection period was 7 days and 5,000 in earnest money went hard after that.
Second buyer offered 136k. Seller wouldn't move a dollar. I let it die. Out 5,000 plus about 600 in inspection and title work, plus seven weeks.
Two failures here. Mine is that I contracted above the ceiling I was handed and hoped. The structural one is that a buy box tells you the shape of the house someone wants and says nothing about whether they can transact this month.
Differently next time: ask how many projects are open right now and what the lender's concurrency cap is, before I start hunting. Push for a 14 day inspection window. And never run a box with a single buyer attached to it.