OfflineI was watching some MMA fighting on the mexican channel last night wen I get an email from a fellow investor Alan. He says he has a 3/2 1300 SF house needing a lot of repairs and its in a decent area and wants 67K for it. This guy did his homework, the email included a Title report and a short video of the house with detailed repairs needed. And cost estimates.
I emailed him back and told him I had a few cash investors that wud pay 69K for it. The ARV is around 120-140K He immediately calles me and we go over some of the details.
I email my buddy Todd who is a landlord and has some cash to spend. I was shocked when he calls back right away and says he wants to buy it, he wants to see the property at 7 Am in the morning and wants to start escrow. I email my buddy Alan and tell him we want to move on this deal right now. He calls up the seller but she dont want to show us the house till Monday and this is all going down at 9:30 PM Saturday night.
How crazy is this? If this deal goes down, I am going to make $2,000 for doing almost nothing. Now Im kicking myself for not telling Todd the price is $72K But thats getting greedy. Im going to write up a short agreement for Alan and Todd to sign b4 I introduce them. Let's make some MONEY Rando
Rando
While waiting for Monday the buyer and seller seemed kind of distant and wudnt commit to signing my agreements. The seller said he made an appointment with Todd my buyer to see the house on Monday at 11Am When I arrived Todd was sitting in his car and didnt get out till the seller arrived. We all shook hands but Todd didnt seem to interested in talking to me. Todd tells the seller he likes the house and will take it. I asked him to sign my finders agreement and he says hes not paying $2,000 but will give me $500 and started spouting all these excuses that the house was on craigs list etc. I told him I wud take the $500 but were not going to be doing any more business. He says, "thats fine". This buyer Todd is a retired cop. It seems these 2 went and made a deal behind my back. Live and learn. Expensive lesson.
Another lesson Learned...
Last summer I was partnering with a Preacher, we had looked at several properties. I sent him over to look at a house that was near his town. He told me the the sellers wanted too much and there was no deal. A few weeks later I did a follow up call to the seller and he tells me ur guy Arcinio has it under contract and wer doing a highest bidder auction in a few weeks. The preacher had some quick excuses and said he wasnt going to cheat me he just forgot to tell me. He asks if I will take a flat $4K finders fee and he will do all the work and there is really not much profit to be made.
A month later he calls and says he needs help selling it and setting up the auction. I place multiple ads on craigs List with photos and etc. With in a few days I had a cash buyer that didnt want to do the auction. I negotiated a high price. Later I find out the preacher is going to make a 40K profit and asks me if I will lower my finders fee cuz he may have to use transactional funding.
Of course I refused and I was starting to get mad. Then he tells me he will just use the buyers funds to to a double dry closing. I warned him if the old guy (seller) knows ur making 40K this deal will fall apart.
And that exactly what happened. The elderly owner went to title to sign the paperwork and thru a fit over the preachers profit margin. The Title company emailed the preacher and told him they wer not closing on this transaction.
I learned some great lessons here. I have had a lot more deals fall apart than I've got over the finish line. I will use this dissapointment to channel and focus into getting more deals and buttning up my methods. Let's make some MONEY Rando
Rando
agreement contract it's so important!!! Last week, estate sale, the seller was happy with the offer, so seller called me up see if I able to offer anything better. I did my work research a little found this Yes, it's great deal. Seller told me the highest offer was $61K, she want anything more then $61K. The house need a lot work, about $20K but comps for this one it's $128K with still awesome deal. I wasn't even think careful, just call up couple my buyers investor. and all meet up at the house, we have no agreement on anything. My investors met my seller exchange phone and I was out the picture. So how we able to hand that?
1. have contract with seller one the price and term
2. have contract with buyer before they met
3. or don't let them meet, I just got the key from seller and show home myself.
Be happy and go healthy ^_^
Ling and/or Dustin