What’s the Hardest Part of Getting a Deal Across the Finish Line?

[Amir Twig]

Hey fellow investors, whether you're doing wholesaling, flips, or creative deals…
I'm curious, what’s the part of the process that most often kills the deal for you?

Is it seller hesitation? Title issues? Financing falling apart?
Would love to hear from others in the trenches: what trips you up the most, and how do you deal with it?

[Ghassan Jabali]

Hello Amir,

I hope you're doing well. Typically, what I have seen with many deals having critical issues is either at the very beginning of making the deal or right when trying to close. At the very beginning, finding deals that a Seller with a property that meets a person's range of criteria to flip can be difficult, especially prior to trying to secure inspection and insistence on "As Is" Provisions. For wholesaling, the beginning can also be difficult if the Seller understands that a person is wholesaling by ensuring that there is rights to assign the contract or makes an offer with the term "And/Or Assigns." One solution is to make sure to send Memorandums of Understanding or being very clear in Offer Letters to be upfront and prevent Sellers from feeling deceived or that you are making a large amount of money off of their property.

Additionally, near the end if financing. I have heard many 11th hour phone call stories of the Lender suddenly threatening to pull out of a deal because one document is missing, their underwriters demanding additional information, or confusion around a business structure. If dealing with residential property, one solution is to keep it as simple as possible and close in a personal name and then transfer it into a trust which may then be connected to an LLC. As long as the property is classified as residential it is usually exempt from acceleration or due-on-sale, even if the intent is to renovate and flip. This reduces issues around complex closings and helps streamline the process.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.