All Forum Posts by: Amin Ali

@Rick H. Good advice and I will just stick to marketing directly to executors.

Thank you

@Mike Flowers Yes my attorney is definitely a keeper.  And that is a great idea to put that the contract is assignable directly in the contract. 

Thank you 

@Rick H. I totally agree with you. Majority of attorneys are good to deal with but you do have to watch out for the knuckleheads.  I target my marketing directly to the executors so I have to deal with a variety of Probate attorneys. Do you think it would be more beneficial to market directly to Probate attorneys?

@Jon Klaus Yes having a "team" around you that can deal with certain situations is critical in the business of Real Estate. I paid my attorney his normal SFH closing rate. which was $450. He told me he didn't want to charge anything upfront to deal with the situation because he wanted all my business, but after all that he did I had to pay something. I also guaranteed I would exclusively work with him on all my deals as long as he is available. He proved himself to be a valuable asset to my business and that is priceless.

I have been wholesaling for awhile now and have yet to deal with a troublesome sellers attorney until one of my last deals last deal. I am a wholesaler out of Chicago and have met and dealt with lots of people, but non like this certain individual. 

This deal was SFH I got under contract through my Probate Marketing. It was a cheap home on the south side and it was going smoothly at the beginning. I received the call from the executor who was extremely motivated and I offered my services. I met with him the next day at the property, made my assessments, and got a contract signed that same day. We had great report with one another and he was happy to be rid of the property. the number are as follows:

Contract price: $25,000

Repairs: $30,000

ARV: $115,000

I offered it at $35,000

This is 57% of ARV to an end buyer. I found a cash buyer who really wanted it 10 days later. He was going to Rehab it himself and move his family into it.

The seller gave the contract to his attorney and had no problem with it initially until we told him that we were going to assign the contract to another buyer.

This is where it turns ugly. He than proceeded to tell me that it was illegal and that I had no right to assign the contract. He claims he spoke to the attorneys at the Title Company we were closing at (ATG -Attorneys Title Guaranty Fund, Inc). I clearly told the seller we may buy it or pass it on to one of my investors. I also signed the contract Amin Ali and/or assigns. I did everything I was supposed to do but this guy was unbelievable. 

Then I called my attorney to take over on my behalf. The sellers attorney still wouldn't budge on his stance . To make matters worse he told the Executor of the property we were scam artist and said we were trying to violate a list of HUD violations. The seller called me to see what was going on and I explained to him that his attorney was greener than a Jets fan and probably never completed this type of deal before. He said he has to do what his Attorney tells him and the only way we could close the deal was to work it out with him. The sellers attorney said the only way he could do the deal was to put me on title and have me issue a quick claim deal to the end buyer. There is no way the end buyer was going to allow this and I said no thanks to that Idea.

So after a few days of my attorney and the sellers attorney going back and forth we just decided to double close on it and take some losses. 

This next part was shocking and it validates it always pays to have a good attorney on your side. My attorney called ATG's head office down in Champaign, IL and spoke with the lead underwriter. 

This is the exact email I received from my attorney after speaking with the lead underwriter that he sent to the sellers attorney:

Counsel,

I spoke to the head of underwriting at ATG yesterday — Tanya Story. She indicated that ATG has no problem with assignments, flips, double closings or simultaneous closings. She seemed quite incredulous that you suggested otherwise as their office conducts these transactions daily. She seemed shocked that you were hesitant in moving forward with a simple assignment contract…I agreed.

She said she could walk you through how to handle an assignment if you felt nervous or uncomfortable. You can reach her at 217-xxx-xxxx

I will call you later today so we can revisit how to conduct this transaction. Or you can call me at 773-xxx-xxxx at your convenience.

After that I knew the sellers attorney was a liar after saying he spoke to the attorneys at ATG and said it was illegal. 

The sellers attorney had to concede and move forward with the deal. The reason he gave in response left me flabbergasted. He told my attorney he didn't want to move forward with the deal because I said I didn't want the deal on the HUD. He lied again just to not make himself look like a fool. Shameful behavior in my opinion.

In conclusion we closed on the deal 2 weeks later after all documents were ready for closing and I was glad this ordeal was over. 

@Franddy...I agree to meet up with the seller whenever submitting an offer, but sadly I mailed yellow letters to absentee owners and the owner lives very far away and did not want to meet. He also was an older gentleman and did not have an email address(so he says) to email comps and give him line for line what repairs were needed. I do plan on keeping in touch periodically and will keep you posted on what happens.

@Victor N'Guessan...Since this was my first time seeing this property I did not have an Inspection done, but I did try to explain to the seller line for line what Repairs were needed. Also I have access to the MLS so I did my own CMA but the guy didn't stay on the phone long enough for me to tell him or send him the property Values in the area. After I tried to explain all repairs he started to get mad and stopped me, than he said "Just tell me you offer." Which I did and that was the end of that conversation.

The thing I couldn't understand is that there was obvious water damage in the bathrooms and kitchen and he admittedly denied it.

Also he had tenants in the house that were very unhappy with the condition of the house but he seemed not to care. Good thing is they are good tenants and keep up with their rent. Their lease is up in about 2 weeks and I'm sure they wont be renewing it so this is even more of a reason for him to sell quickly. When I was inspecting the property they constantly pointed out all the flaws in the house which were pretty obvious.

This guy just really seems delusional and I don't want to waste too much time on him.

Great advice Michael. I have heard this strategy before and I will definitely give him a call before he moves. Thank you.

Just got off the phone with the Seller and the guy has no idea about Real Estate. I tried to explain to him that the property needs at least $25,000 and he seems to believe that the property only needs tile in the kitchen. The property is in pretty bad shape. SO I gave him my offer of $85,000 and he laughed and got off the phone quickly. The guy is extremely unrealistic and will have trouble selling this property, especially since him and his wife are moving out of state soon, I believe he will realize this quickly. The funny part is when I first started talking to him he said he had no idea what the property was worth .So on to the next one

Thank you Alcides. Good advice, I will try and call some agents today. Also I am wholesaling this deal. I will be making my offer today and I will keep you posted. Thank you.