All Forum Posts by: Account Closed

Good points Matt.

Why not be honest with the seller and tell them that the house does not fit your investment criteria. But you're willing to help them out and market the house to other investors that would pay them the same cash price? Word it as if you're doing them the favor, which you are.

Then write the contract with an option period that allows you to exit if you're unable to find a buyer. Tell the seller that you have an investor network and you think you can sale the house quick... then get to work selling! They will appreciate this honesty and in the past this approach has allowed me to negotiate a lower price with the seller.

Let me explain; I found a buyer for a house I had under an option contract but my buyer was not willing to pay a price that would allow me an assignment fee... I went back to the seller and negotiated (with honesty) him down $3k. I didn't make much on this deal ($3k) but both my buyer and seller were extremely happy. My seller was able to move and my buyer got his price.

My buyer was so impressed that we talk on a regular basis. I have since assigned another property to him and I made $31k. I fully disclosed my profits with him. I didn't have to double close and lose money by getting the deal funded. He was happy with the price I was offering the house at and because of our relationship, he didn't second guess my intention.

Sure a couple bad deals are not going to completely ruin your reputation but it sure isn't going to help it either. Why not figure out a way to do the same thing but fully disclose your intentions with everyone involved?

I don't even want to tell you that I stopped sending out contracts a year ago. Total waste of time when dealing with private sellers. They get nervous. They ask questions. Instead, we come to an agreement over the phone (stopped meeting them over a year ago as well), then I tell them escrow will be mailing them escrow instructions. The deed in the instructions has my buyer's name on it.
What's Ron LeGrand say? "The less I do, the more I make!" Yeah, works for me.