One Good Definition of Stupidity in Real Estate
I really don't have time for b.s. If you're a real buyer, you don't either. I've covered this topic before, but I really hope that hitting the same topic again will hit at least a few Sellers and shake their thought process up.
Let's talk to the Sellers:
Dear Seller,
It is your responsibility to demonstrate that you have something of value to your proposed Buyer. If you control it or own it, you should have no trouble providing any of the information needed for a prudent Buyer to evaluate your deal. Asking us for a proof of funds before demonstrating value proves nothing to us. It actually doesn't do anything for you either because if you don't have something of value to sell, then you won't sell it and all you'll have is a nice proof of funds. Do you really think you'll have anything else if you don't have something of value? If you do, then I suggest you go to Dr. Phil's website and ask to be on the show.
Respectfully,
The Buyers
Now for some this may seem like a rant, but really it's not. What it is, is a demonstration of reality and as such as reality check for those involved in this business. If you don't have something good to sell, nobody will buy it, so stop asking for proof of funds before you demonstrate that value Mr / Mrs / Ms Seller. Once you have an offer on the table, then you have a right to ask for a POF, but not ever before.
Now, I hope all of you Buyers and "REAL SELLERS" enjoyed that.
Until next time....
Comments (2)
Great question Cara. As a wholesaler, YOU need to understand what the property is worth if you want to stand out of the crowd and gain respect. Too many sellers/wholesalers just throw mud against the wall hoping some will sell and what they usually get is no sale because they don't understand the repairs needed, nor do they even understand what the property is worth. I had one wholesaler the other day tell me he had this great HUD deal selling for $30k. When I ran comps, the median value in that area was just $11k. What credibility do you think he now has with me? I think you get the picture. Basically don't send anything out unless you know it's a deal. That's how you get noticed and stand out of the crowd of the wannabes.
Alex Musulin, about 12 years ago
Hi, I'm just learning about this so if this question is absolutely idiotic, that's why...What do you want to see from a wholesaler who's assigning a contract to you that prove it's value? Is it just comps? Or a more heavy duty analysis?
Cara Smith, about 12 years ago