$9,000 Wholesale Completed - Toughest Deal Yet!

[Tim G.]

This was by far, the strangest and hardest deal yet for me to complete. Seems ironic since its such a small payday.

*No Address yet will add later** Buena Park, CA

ARV - $630-650k
Repairs - $30k
Sold for - $511k
My Price - $500k

This was someone else's deal who backed out after being unable to deal with the situation it was a mess and quite honestly the effort I put into this was not worth the check. I was pot committed and made it happen and can look back and smile now.

Strange deal. Basically parents live in the main house and eldest son and his family live in the granny flat. We were instructed NOT to speak to him because he was violent and not cooperating with the sale due to his feeling that he owned half of the house and was duped into signing off on title several years back.

So, before it fell out from the previous buyer I contacted the agent and offered to let her double end the deal but would need a credit from her to get the price down to $500k (sellers wouldn't budge from $506k). Put in the offer and got things rolling, got the okay to speak to the son once the owners were close to moved out on the other side. I was getting MAJOR pressure to fund and close fast.

The catch of course is my buyer won't take this deal if I don't have a signed agreement to vacate from the tenants. So I need to scramble and get that. After three days of trying to reach the son I went over late on evening by myself ready to get beat up or who knows what.

Knocked on the door, a friendly lady answers and they let me into their home. Its super clean and they were so nice and respectful. We spoke for about an hour and I learned about the whole story and really felt for this guy, he was near tears many times about the whole situation and knew he had no legal right to the house. So, I did the best I could and explained I was buying but wanted to treat him with respect and make things easier.

So, I offered him $2k to be out by August 1st. They were already planning to move the boxes were on the floor but it seemed the right thing to do and I don't mind losing a little on a deal to show someone I care and want whats best for them and their family.

Agreement to vacate is signed Thursday July 11th and we are getting pressure from the owners to fund and close that week. I didn't think it was possible and explained to the agent a Monday close was no problem and just calm down the sellers. The more this deal progressed I learned there were three other siblings, their spouses and other relatives all with their hand in the cookie jar on this deal and they wanted it closed ASAP.

Worked with my buyer and escrow and managed to fund Friday to close, not sure how it was an insane hail mary. We then get a call late Friday from the agent explaining the family now wanted to close on Monday but stay in the house for a month. I literally lost it, told her I was writing up my cancellation and I was done. I've never been more angry on a deal in my life. She was begging us to let them stay and hold the deal, offered a small credit and I decided to relax until the next day. I didn't even want to bring this up my buyer I was so ashamed how this deal was turning out.

Saturday after I cooled off I let the agent know they could either follow the signed contract or cancel and give us our money back I was done no deal. She then asked if there was anything we could do so I came up with one last idea.

Family can stay in the house for the month as requested and leave August 12th. ALL funds stay in escrow including her commission until they are out and we need a $3500 credit. This was a 12 day delay for us based upon when the son was leaving the granny flat (Aug 1st). They agreed and I went back to my buyer with the bad news. It was a short delay but a solid credit to sweeten the deal for them and they felt secure with the funds in escrow so we closed the deal on Monday July 15th.

Today the son moved out and we met at a Chase bank where I paid him his $2k in cash and went on our way. We are like friends now, and I managed to restore faith in strangers for these folks who had been treated so poorly by their family but so respectfully by a complete stranger. They were happy with how things worked out and are moving on.

Well, that was a novel and probably best explained verbally versus written in text but its an interesting deal. Still have a few weeks until the parents are out of the other unit but things are moving along and with all those people after the money there is no way they are letting it sit in escrow they will be out on time that is for sure.

And that ladies and gentleman is the biggest pain in the *** deal I have ever completed. Does feel good to know I made it happen past all those hurdles, I have never utilized my listening and people skills more than in this deal. Wholesaling is work!

[Henry M.]

Originally posted by Tim G.:

@Henry M. Thanks!
I am thankful for it all, I try to treat every deal as if it were my very first. Give it the same energy and intensity, stay hungry you know!

As you said, the experience was priceless.

Absolutely, agree.

The experience you've gained is a never ending well you can always draw from. When everyone else around you folds and all your circumstances crumble, you can dip into that well and pull out what most have never experienced.

You can stop real estate investing for 5 years and come back to the table always knowing how to quench that thirst.

I know, like you, I've been there.

* Most say I'm good looking... Oops - Wrong subject.*

Most say I'm too confident. I say its because I've been to the bottom of the well and while everyone else thought it was dried up, I'm still able to draw water against resistance.

It's like having a few backup Aces in your sleeves. Almost like cheating defeat.

You know why Tim, because we're winners.

We refuse to succumb to our circumstances.

Yes we're stubborn, but even if we broke even, what has been done most cannot do.

This is our secret.

This is our strength.

It is the way of a TRUE REAL ESTATE INVESTING SAMURAI.

LOL, Sorry, I got kind of carried away there. You get the point. It is NEVER disappointing, it is investing... Even when it comes to your time.

I raise my glass to yours (clink) - Congratulations in joining the few on here who will not quit.

Big Henry