Flip This Wholesaler

7/8/2009

So, I ended up finding another buyer for the property that I just got under contract. Actually, I found 3 buyers, but this guy was the first one to cough up a deposit and sign a contract. We met at my title company earlier today to get everything squared away.

This guy called me a few months ago when he saw one of my signs advertising a deal I had at the time. It took him a few days to go out and look at the property, and when he called to tell me he wanted it, it was already gone. I hadn't heard from him in awhile, and he just happened to call me on Monday to see if I had anything available. I told him about my current deal and he went out to look at it immediately (apparently, he learned his lesson about lolly-gagging) and called back within a half hour with an offer of 19k (I was asking 29k). I told him that was too low, and he said he would think about it and get back to me. Long story short, he ended up calling me back 3 times with higher offers (this is always a good sign), and yesterday we agreed on a price of 25k net (meaning he pays all closing costs).

It's 1k lower than the previous offer, which sucks, but I'll take it. I've got a lot of other stuff on my plate at the moment, and I just want to get this one squared away so I can focus on the other stuff... Also, this buyer is what I like to call a "Jackpot Buyer," so I'm willing to take a little less just to start building a relationship with him. He's got deeeeeep pockets, lots of properties, and best of all, he's not a douche bag. These are all qualities I look for in a buyer. My guess is that I will make a lot of money with this guy in the long run. Just a hunch.

Now I just have to get the bank and their title company to actually do their job. I'm a leetle bit scared that I haven't even received the executed docs back from the bank yet. Usually when it takes them several days to sign the contracts, it's a sign of what's to come. Also, this is the same freaking asset management company that was in charge of the last deal I was working on, that I ended up losing. This time, though, I have the asset manager's contact info (the listing agent accidentally sent it to me when she sent the bank's addendum), so I can personally harass the shit out of him if he doesn't get things signed in a timely fashion. Also, they are using a local title company, so if they suck (and chances are, they will), I can actually go into their office and harass them in person. Definitely a bonus.

That's all I've got for now.

Later Alligators.

P.S.
A big congratulations to Shae, who just closed on her first rehab, and also to Craig, who just closed on his first short sale! Both are shining examples of where PERSISTENCE and MASSIVE ACTION will get you!

7/6/09

So I had a dream last night that my buyer for the property that I just got under contract, backed out.

I called him first thing this morning to set up a time to meet and get everything signed, and he told me he does not want to move forward with the deal any longer.

Yay!

The house comes with an adjacent lot, and he was under the impression that the lot was buildable, and apparently it isn't. This is a deal breaker for him, unfortunately.

So now I have to find another buyer, which I'm fairly confident I can do, but I'm still pretty irritated about the situation. I was planning on setting aside this entire week to finish up my ebook, but now it looks like I'll also be marketing for another buyer.

Oh well.

I should know better by now than to count on a deal closing until I actually have the funds in my bank account. Even if you're sitting at the closing table, with all of the documents signed, and your buyer is sitting across from you with a cashier's check for the purchase, things can still go wrong.

Gotta love this business!

7/2/09

Sooooo....I got a deal under contract and sold yesterday! This is a different deal than the Hooker House I wrote about last time, which I am going to pass on.

I'm pretty sure this was the fastest I've ever sold a deal. And it was all done via text.

Here's how it went down....

2:32 pm- Phone call from listing agent of a property I offered on this past Monday. It went to highest and best, and I offered 21k (10k over list). She said there were 20 offers on the property, and they had it narrowed down to 3, one of which was mine. She told me if I verbally agreed to their new terms, she could get my offer pushed through. They wanted 10% in escrow instead of the 1k I offered, and everything else was the same. I agreed to the new terms.

Oh, and she also wanted to verify that I was giving her both sides of the commission, including the 3k bonus to the selling agent. I'm sure this had nothing to do with me getting the offer accepted.

5:07 pm- Email from listing agent telling me they are taking my offer, and that I need to sign bank's addendum and return it within 48 hours, along with earnest deposit.

5:50 pm- After going to look at the house one more time, sent the following text message to my favorite buyer: "Hey Favorite Buyer, I just got a house you are going to like. 123 Main Street. 1200 sf frame, carport, fireplace, comes with extra lot. Nice street. Lock box 8590. Asking 29k."

6:35 pm- Text from Favorite Buyer: "20k."

6:36pm- Text to Favorite Buyer: "27k."

6:36 pm- Text from FB: "24k."

6:38 pm- Text to FB: "26k. Work with me here."

6:39 pm- Text from FB: "OK. 26k."

6:39 pm- Text to FB: "Cool. It's scheduled to close on the 24th. That OK?"

6:40 pm- Text from FB: "OK."

6:42 pm- Text to FB: "If you're around this weekend, we can meet to sign everything. Just let me know when."

6:46 pm- Text from FB: "OK, no problem."

And there you have it.

I probably could have found a buyer for more than 26k, but I'm always one to take the quick nickel, especially if it is from one of my solid buyers. This will be the 4th house I've sold to this guy this year, and the 6th since last summer.

Just to give you a little insight as to how important it is to make clean offers when you're bidding on a hot REO property..... the agent told me there was an offer of 30k on the table, but they wanted a 7 day inspection period. My offer was 9k less, but had zero contingencies.

It also helps to bribe the agent by giving them both sides of the commission. Especially when there is a 3k bonus being offered..

OK, Gotta run..

Have a safe and fun-filled 4th of July!



P.S.
I just added Patrick and Trevor's Private Money Blueprint to my list of recommended courses. If you have time this weekend, check out the free videos- there's several hours of quality content for your viewing pleasure...