The $6000 text message. Be patient or close the deal? What would you do?
Be patient or close the deal when you can?
Here is the situation:
I put a property under contract for 40k. ARV 70-75k and needed 5k in cosmetic repairs. I got a deal! no question.
I shopped it around to my buyers at $47.5k using the "text book" formula ARV x 70% - repairs and gave exclusive look to a buyer that I worked with in the past. Everything text book so far. After back and forth negotiations, to my surprise, the buyer offered me $41,500 (40k +$1500 assignment fee), final offer, sticking to his number. This is Friday
I thought that I can do better than that and shopped it around to everyone on my list. Another serious buyer saw the property and seems to be interested. He just told me that he has to submit it to his buyer in CA so he will have a response for me on Monday.
Monday arrives and I have no offer on the table. I follow up with the potential buyer multiple times on Monday and Tuesday morning and he tells me that he haven't heard from his CA buyer.
The only offer on the table at this point is the 41,500 and I know that the buyer will close the deal since we just closed on another deal a week prior. The guy is for real. On the other hand, I haven't done any deal with the other CA buyer but I heard from other wholesaler that he is serious.
Tuesday afternoon, I am focused to make a deal and to make more than $1500 in assignment fee. I contact the seller and tell him that I have a very strong buyer and if he can do 38k instead of 40k we close in two weeks or less. The seller agrees.
I go back to my buyer and tell him that I agree to 41,500 (38k + $3500 in assignment fee). He agrees, we have a deal and sign all the paper work on Tuesday afternoon.
A day later on Wed. the other buyer text me and offer me my full asking price of $47,500, $6000 profit that I left on the table had I waited one extra day.
What would you do? Discuss...
Most Popular Reply
I'm a man of my word so I'd keep it. My word that is, not the house. Although, I probably would have tried to keep the house had I had the deal. It'll pay off much better in the long run than a highly taxed, short term profit today.
Call your first buyer up and tell him you have a higher offer. If he wants the house it is his at his price, if he'll let you sell it to the other guy, you'll split the upside with him and he can make a quick $3,000 by not buying the house. That way, your old wholesale buyer makes an easy $3K, your new high priced buyer becomes a new customer for you, you get $6,500 instead of $3,500, and you keep your integrity which is more important than any of the checks involved in this deal.