To Close or Not to Close... That is the Question!

Hi Kathy,

Congratulations on locking up a deal. You are on your way girl.

I don't see any harm in disclosing that information and don't see any reason to do so. It seems to me it is all part of the information necessary to know if a deal will work for a particular investor or not. What are your concerns? If you are not being greedy there shouldn't be a problem and your buyer(s) will come back again and again to get those great deals that they know you will provide.

Again Congratulations!

Say to them "I have this property, but I need someone who can close in 10 days. I'm giving you first dibs on it, so if you can let me know pronto, that would be great."

Telling them YOU have to close tells them you have a contract on it, but it expires that day, so they can hold out and go around you afterwards. Dont give them when it expires, but make it so you get it out your hands way before then.

Hope it helps.

Thanks sooo much, Wendy I thought as you did. Elix this is the strategy I need to know so that those sneeky questionable 'cash buyers' that dont give their criteria, and just say bring me everything, can put their money where their mouth is Awesomeness.

Elix, I thought about them going afterwards to be waiting in the wings once the contract expires so I hesitated at first. But I did give them less than I really had to close.

Thanks for the Help!

I know sometimes its hard to see if a cash buyer is really a cash buyer, so before you send out properties, its always best to meet with them.

Lets say you speak with an 'investor' and you tell him you have a house, do not reveal address, but you'd like to meet beforehand to see their corporate docs and bank statement, "just to make sure you're not wasting each others time"

A true investor will not get offended, and will have no problem, so offer to meet them 2-3 blocks away from home, personally see their paperwork, make sure they all match with names. Make sure corp docs and bank statement have same name. Don't fall for the following

"Acme LLC is my company, and John Smith is my partners bank statement" His name Robert Cunningham

"Oh I rushed right over here and forgot it. Can I see it and i'll come back with it to show you???" Just walk away

He's got a letter from his 'attorney' saying he has over $5m to invest with. Ask him to see the original. Better yet, just walk away. That doesn't exist and even if it did, why would someone with $5m actually have to meet a total stranger to find a deal??

Time wasted will be never be recouped.

At first my strategy was to Buy and Sell with a Double Closing, we get 10k
My investor told me after giving him the details on property, that he pays 5% for assignments. I said: I want to double close the deal and the Title Co is investor friendly, he said oh ok no problem, he would be getting with His Investor and get back to me today (this morning) I finally had to make the call to him at 11:am He said his investor doesn't like flat roofs so, after stuttering a while, I asked if I should take him off my list for the offer? He finally sd yes. Hmmmmm....

Should I have just gone with the assignment? Making 3K ? I think that if he would have counter offered I would have considered it, seems odd that he would quit so soon? Do "flat roofs" really make a difference?

My other cash buyer, when I offered to him, he directed me to his website and asked me to send him a flyer with details of property and he would send out to his list of 2,000 buyers and he went on to say he does Not charge (me) for this? But did give me some advise: If I want to Wholesale this property I should be selling for XXXX. But he will list my flyer with details on it with the price I first started with and a word of advice on his part was that you will get counter offers just know that you can still get XXXX for it as your bottom line.

I'm thinking to avoid all the pause in this deal maybe I should have just gone with the assignment fee of 3K ?????

your buyer said take him off your list. take him off

Some don't like flat roofs because they tend to water, which sometimes leads to leaks, etc

You could go back,....and he could say he's in the middle of another deal I can only give you $2k or $1500

You got your first rejection; YAAAAY. You're a certified vet now.

Now roll with it and find another buyer

I think you need to build your buyers list, and know what each of your buyers wants; and I wouldn't tell them when you have to close; instead, I would ask them to give you an answer within 48 hours so that you have time to offer it to another buyer if the first one doesn't come through...
Also, why would you not assign the deal? it is less headaches and costs than a double close. Think about it.. 3K or possibly no $?

Wishing you success,
Valerie

I am thinking of doing that now,,,, still have another buyer offering that

Yep, I'm feeling the pressure but I no doubt put it there myself, word from the wise, thanks all!!

Elix once again you have superb advice. I learn so much on this forum. Thank you. Tammy

Danke

Want everyone to eat

No fun in ribs touching

"Telling them YOU have to close tells them you have a contract on it, but it expires that day, so they can hold out and go around you afterwards."

If you have it locked up, give them the information. The hold out strategy rarely works because they risk getting no deal. Real investors don't play around. If it fits their criteria, they buy it. You tell them "It has to close in 30 days. You have 3 to let me know. Otherwise I have other buyers interested." If you have a 15 day inspection period. you can offer it to 5 different buyers. Or you can offer it to your best 3 buyers then blast it out to everyone. Or you can blast it out to all buyers and take the "you snooze you lose" approach. That being said, I know some cash buyers who don't have cash, but instead have a solid relationship with private money. Sometimes it takes them a week or two to actually get the cash, but they are the actual end buyer capable of closing a deal. They need to know how much time they have available. If you have it under contract, you have protected yourself. Put it on craig's list immediately and build your buyers list while your other buyers think about it. If you don't have a buyer in 15 days, one of 2 things...it's not a good deal or your buyers list is weak and they are not real cash end buyers. Worrying about someone going around you in 30 days should be the least of your worries. If you can't get it done in 30 days, you need to figure out what to change on your end.

Those three should either be people she knows has the funds available or verified; she's just started out if I read correctly, and sending out to everyone on a whim tends to lead to issues, especially if your contract is not with the direct owner or listing realtor. It means nothing contrary to what you want to believe.

You tell them you have to close in 10 days and there's a 3 day inspection period. Thats when you know you've got someone serious. Let them call you, tell them you'll call them in an hour. Call them back in three. Guarantee you they'll still be interested. THAT!!!! is a buyer.

That "snooze...." can often backfire as all it takes is for an experienced buyer is to research the owner, get their #, and do the deal with out you knowing anything.

Starting out, know who you are showing your property to, not throwing stuff up in the air to see what sticks approach

"especially if your contract is not with the direct owner or listing realtor. It means nothing contrary to what you want to believe."

I'm confused. Why would you have a valid contract with someone other than the direct owner? Are you saying a valid purchase and sale agreement accepted by an owner carries no weight in a court of law?

"That "snooze...." can often backfire as all it takes is for an experienced buyer is to research the owner, get their #, and do the deal with out you knowing anything."

Sure that possibility exists after my contract expires. Isn't that the whole point of having it under contract before you release any info? So you are saying an experienced buyer is going to try to snake me once versus losing me bringing him 10 deals down the road.

"Starting out, know who you are showing your property to, not throwing stuff up in the air to see what sticks approach"

That's the problem...when you are starting out you don't know who you are offering the property to. Hence the 3 day period. When they say they want it, you get a non-refundable earnest money check to cover your emd with the balance of the assignment fee due at close of escrow. That eliminates the middle men from the true buyers. Some also choose to have the entire assignment fee paid up front. If you are an experienced buyer and you stub your toe, it's not my problem.

Having the end buyer replace/put in the earnest money will shake out those who are not serious.

Having more than just a couple cash buyers allows you to have the power and the buyers will make quick decisions about locking up the deal with you so they don't lose it to another investor.

It is ok to ask for a bit more than the earnest money when you assign the deal (couple hundred above the earnest money amount) so they are less likely to try to go around you if they don't close.

If the deal is good, and you have more than one investor interested, and the investor who wants it has to put in the earnest money plus a little extra, you will sift out the posers from the real investors.

And remember, you can present yourself to your investors as though you are desperate that they please throw you a bit of money if they will just please help you, or you can present yourself as being very valuable with a very valuable opportunity and you are to be respected.

This is business and investors smell fear and it is normal they will try to make money from it.

But if they sense confidence, they treat you and your deal with respect and everyone wins.

Happy Investing!

You are wise beyond your years Jedi TRSD

Yes a purchase and sale agreement signed by the owner does but i've had individuals on here ask me "can I put a contract on a home that I saw on the MLS???"

I think some on here are still confused with the assigning issue, trying to get a buyer/offer for it, and then going to the broker/owner for verification.

In terms of you being snaked or not, no one,......no one, can guarantee an investor any type of number of deals they can produce; to do so and not follow through only leads to you looking like a fool or inexperienced.

Whether you are starting out,......especially when starting out, you should have some knowledge of who you deal with. Thats why claiming to have 25 or 2500 on your buyers list means nothing until you know for sure that they are real buyers. Thats great to brag about and might be good for your ego, but it means nothing if nothing happens with them.

If you have 10 buyers, and you have a property, you call all 10 and tell them what you have, and if they are interested, you ask to meet with them to view their paperwork. If 9 balk, move on. If the 10th shows up and you see what they have and you are satisfied, then show them. I can almost guarantee that this nonchalant action most often leads to deals being lost and they never know about it, or if its too late.

I BEG MY LESS EXPERIENCED INVESTORS TO PERSONALLY MEET FIRST BEFORE SHOWING!!!!!!

"In terms of you being snaked or not, no one,......no one, can guarantee an investor any type of number of deals they can produce; to do so and not follow through only leads to you looking like a fool or inexperienced."

You misunderstood my point. Let me clarify...No guarantee...I make no promises. What I am saying though is, the possibility exists of me having a relationship with a buyer and funneling him more deals down the line. So he risks a potentially profitable long term relationship to snake me on a deal? If you are a snake, you reputation will eventually become widespread pretty quick these days with the internet. Like I told someone at a local REI meeting...it's a small community. Eventually you will get all snaked out and end up not being able to do a deal anywhere, or maybe behind bars, who knows. Like I told someone at a local REI meeting...it's a small community. But then again, that's no guarantee you aren't going to run into a flake. I am confident in the fact that my buyers list is legitimate because I use means other than ghost ads to build my buyers list. Ghost ads attract Ghost Buyers. Then you have to weed thru all the BS, which at times can be a challenge for someone new to real estate.

I have had buyers with no bad intent at all that had a couple of their own properties closing or had to arrange their Private money and needed a time frame in which to get everything done. I tell them we can close in 2 weeks if they are ready!

I let them know I have several other interested parties and if they want it they better act fast. If I have never worked with a buyer I let them know the earnest money is none refundable if they don't close. If the seller backs out than my buyer gets their money back.

I really concern myself with finding and getting great deals under contract. Do that and you won't have to worry about anything else. WHO cares if some jerk thinks he will wait you out? Sell it to the next guy!!

Michael Mangham
MD Home Acquisitions LLC

I asked my realtor to send me a list of all the properties sold to cash buyers in tbe last 90 days. (this took my several tries with different realtors). The results when it did happen are nothing short of awesome. I cross referenced the addresses with the county treasurer and got the names and addresses of almost 50 guaranteed cash investors.

Anothet hint: I also looked up the owners info on the houses I want to put offers on. A couple are also investors and two others have back taxes due. How valuable is that onfo to me!

Well put, you hit the nail on the head with my concerns.I've by offering this deal to my buyer's list of 7, all flaked except one who is a rehabber, the only one who invited me to his office to talk about what he looks for. Need to find more like him. Two others only look for up to 30k with no more than 3k in repairs. Others are wholesaling but dont say they are they are the "posers" and when I brought them the deal they flaked out! Okay, on the road to understanding how this works!

Thanks for the Amazing advice

You too Brad, great advice on the EM

That Wholesalers are posers, because we know that "we" are not! Just not sure what they are. (those on my list)some I met at REI club and some at a tax auction, all said I can close quickly and pay cash, so far they have not nor have they even gotten back to me with any questions...I've emailed them at least twice with the info and called still nothing....

One wholesaler on my list and I agreed to co-wholesale on deals I bring him and he will put through to his buyers, he let me know what they need and he is in constant communication with me. He hasn't delayed getting back to me with my questions. So building relationships with your buyers is Important!