Irrational sellers at reassignment closing

[John Ma]

I'm wondering how many of you guys experience a seller freaking out or feel like he was cheated because he finds out you made several thousand off of him during the closing?

I know we have to drop the "I may assign this purchase agreement to another investor or partner" as well as it stated in the purchase agreement, but often times the seller may just be relieved that a purchase agreement is being generated and the rest just flys over his head.

I can understand why a seller may feel this way.  It was advertised that he wouldn't have to deal with agents taking a commission and here he sees the investors making several thousand, which could be arguably the similar to a commission of some sort.

How do you deal with people like that, and at an extreme case where the seller may even tear the contract up and threaten to get his shot gun.

Has anyone tried anything creative, other than back to back closings and double fees, that may help a transaction go smoothly with sellers like this?

[Steven J.]

If you get a seller that is going to be irate you made money when they were expressly told they were getting top dollar you as a wholesaler have out right lied. I am up front about everything and in form them that I may sell the deal to another investor. If you do have a seller that is going to respond in such a way its because you've conducted business poorly and need to reassess if its right for you. I can attest to it because I had a similar situation, not nearly as bad, happen. It left me feeling extremely guilty, foolish, uneducated, etc. and I learned. Thankfully, I was able to hand off the deal to another investor that could close the transaction so the home still sold.

With the back to back closings you may need a bridge loan where someone loans you the money to close transaction A and pay it off with the proceeds of transaction B.