Deals falling through?

Question

Does this happen often, deals falling through? I've just started wholesaling, week #5 for me, and I've had 2 deals (only deals I've had thus far) fall through. 1st deal didnt complete because the home owner wanted 30k for a 67k ARV home, but the home had a 12k lien on it. So the best we could do so all parties involved would be happy is approx 15k for the home. The seller backed out when I brought him the contract.

2nd deal, the home was a complete gut job, in a so-so neighborhood, home was worth approx 51k ARV, but with all the work that needed to be done we could only offer a small amount. The seller said he wanted 12k for the home, and when I asked him how his a 12k amount, he basically told me he paid such and such amount for the house and wont take less than 12k for it.

Does this happen often? Its extremely frustrating, especially since I'm trying to land my 1st deal. Needless to say this pissed me off so much (2nd deal falling through) I went and put out another 70 bandit signs lol.

But seriously is this just how it is, people say yes, then change their minds at the last second and say no?

Travis Newton · Answer

I'll look int REO's there are a few in a neighborhood I was checking out, and in talking to the neighbors the houses have been vacant for over a year.

Don Hines · Answer

Motivation is the factor. I chase REO's and have decided to look for those that have been on the market for a while instead of jumping on the "just listed". Hopefully those banks are a littel more motivated.
Don

Travis Newton · Answer

Gotcha, the more motivated  the better chance of the deal being completed.

Thanks!

Account Closed · Answer

There is some educating and negotiating involved.  How much a seller paid of course has no bearing on what a property can be sold for.  Obviously we all want to get at least that back, but reality is that the market may not allow for it.

Your sellers motivation is going to be a factor as well.  Understanding there motivation up from ca be a big plus in completing the deal.