Ok, this woman is driving me batty. She doesn't understand what we are doing and I am trying to explain it to her. She keeps bucking me on everything.
When we started sending her offers, I told her we were going to use a photocopy of a $10 check for the earnest money. That is what we learned at The Edge. She didn't like that. She said it made us look like we weren't serious and that she needed a $1,000 check photocopied. I told her that a photocopy is all she would get because we didn't have $1,000 to put down on every offer and made sure I spelled it out clearly that she would not be getting a real check for it.
So, we finally got a contract signed and we're working our butts off to get one of our buyers to assign it to. The earnest money will come from that person. Well, she calls me today and is asking for the $1,000. Huh??? I can't even call her back right now because I am so annoyed.
I'm thinking it's time to stop working with her. I can't take the negativity from her when we are trying to get up and running. Thoughts anyone? I'll eventually have to call her back and explain it again but, if someone has a great way to explain it to her, I'd appreciate it.
Allen & Denise
Denal Enterprises
She either gets it or she doesn't. Welcome to the reality we call real estate investing.
Always Looking to Acquire Houses | Always Looking to Amaze Investors
Ugh!!! You're right.
Allen & Denise
Denal Enterprises
Okay, I haven't posted for awhile, but I just had to respond when I read your post. My intention is not to be rude, but straight forward with you. If you take offense, I apologize.
I would like you to reread your post and think like a real estate professional.
Let's take it from their perspective. A few years back, real estate agents were closing 20 to 30 deals a month by just taking a listing or showing a house once! Now, they're dealing with homeowners who are in denial, banks who are in denial and new investors who are in denial. In other words, they have to work their tail off just to get a deal closed. Now you guys come along and give this realtor way too much information, tell her that you are investors, that you don't have cash and that you want to give a $10 EMD. Are you kidding me?!! Do you know how "fly by night" and unprofessional you sound?! I would not even waste my time with the two of you.
First, you don't tell agents your whole life. You tell them that you buy and sell houses. Period. You tell them that your offers are agressive, but you will be offering all cash. You give them a copy of your POF and a copy of a $1k EMD. You make your offers. When one gets accepted, you tell them that you will send the EMD direct to the escrow company. Then you get the escrow company's information and tell them that you don't want to be wiring money and/or sending checks multiple times. Please give me the total for closing and I will send you the money. You just bought yourself at least 7 to 10 business days to find the money or your end buyer before having to come up with money. Once you have your end buyer you add them to the contract and let them send the POF and money needed to close. Once closed quit claim the deed to your end buyer after receiving your fee.
I am going to tell you right now that you are trying to do the hardest investing strategy in today's market. Wholesaling REO's are risky and should only be done by investors who have done at least 10 traditional wholesale deals. My suggestion is that you get yourself a list of people who have equity, but are behind on their payments and try to work direct with the owner and not involve a real estate agent. You will also need to have a list of ready to go end buyers. Word of advice... many end buyers will tell you that they're ready to go, but when it comes time to pull the trigger they will not do it and you will be left holding the contract. Make sure you have a ready supply of end buyers who can show you POF.
Good luck!
Thanks for the reply. I appreciate your advice. I know I've told my realtor too much. I am learning. I get nervous and have diarrhea of the mouth when I am nervous. I am just frustrated and losing my mind trying to learn all of this... fast. We got the $10 tip from the Edge and since it came from Dean I didn't think it sounded ridiculous. Maybe it only works with established investors.
You live and learn something new every day!
Allen & Denise
Denal Enterprises
I attended the Edge too, although at mine they suggested $100 EMD
I think your realtor is trying to do things the 'conventional way', not the 'investor way'. If she doesn't understand what you're doing, then maybe you should start looking for one that does understand REI.
As Kimmy stated, just tell her that you will be sending your EMD directly to title company-you should have a closing agent on your team who will work with you over and over, be familiar with double closing, and assignmnet of contracts.
Wishing you success,
Valerie
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
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