All Forum Posts by: Account Closed

An investor cannot "help" a seller who does not have a problem and this is typically indicated by a lack of motivation on the seller's part. Just because an buyer wants a seller to have a real motivation won't make it so.

Not saying the seller won't be motivated down the line, but it sure sounds like you're pushing a rope...and that seldom works.

Lol, yea, if he doesn't have a problem. Then it's like I'm trying to find a way to help him when he doesn't even need help.

*Shakes head* I always wondered why people of perfectly good health and that were youthful got frustrated and irritated at me for trying to help them cross the street...

It's ok, because I've learned A LOT just by going through these motions.

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Originally posted by @J Scott:

It's a negotiation -- business not personal. You either come to an agreement or you don't. The same type of rant you're making about the seller in this situation, the seller was making about you while his lawyer was revising the contract. If you can't find a middle ground where you're both get what you need, you walk away...no need to rant or "blame" the seller.

Okay, that's enough philosophy...now for the practical:

- It sounds like you weren't clear with the seller that you'd be wholesaling the deal (maybe you thought you were, but it doesn't sound like he "got it"). Assuming that's the case, I can see why he'd have a problem with your contract. And that's why I always recommend being upfront about trying to find another buyer -- you might lose the deal, but at least you know right away that you're not dealing with a motivated seller.

- If a seller brings in a lawyer to review the contract, you can assume right off the bat that he's not overly motivated. Not saying you can't put together a good deal, but don't expect that you'll be able to get everything you want when a lawyer is involved.

- Don't get emotionally attached to this deal (it sounds like you might be). Not every deal will work out, and those that come close to working can be very frustrating and time consuming, and can make you want to give a little more than you should to make them work. Don't do it. If it doesn't work, walk away.

Thanks Scott!

I thought I was clear with him. I told him exactly what I was doing, but you're right, maybe I wasn't clear enough. I don't really blame him, and I didn't intend for it to come across as a rant. He can decide "nope, I'm done" and that is fine with me (yea sucks because I've been working this over the past week), but it is what it is. I don't want him to do anything he isn't comfortable with. I'm trying to HELP him, and if what I'm doing or what I'm offering isn't HELPING him then he must not really be motivated as others have pointed out.

Nick

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Originally posted by @William Baumann:

@Account Closed Read J Scotts post over 3 times. I am serious, 3 times.

Walk AWAY!!

Like J Scott said, it sounds like you didn't convey you were wholesaling the deal, the fact the seller is trying to change your contract speaks to that. -RED FLAG

You said yourself that you offered more than you should and now are not even sure you have a deal anymore. - RED FLAG

Add to that the fact that the seller is now wanting to change the deal for more earnest money, means he is not motivated- RED FLAG

That is 3 strikes on your "deal" and it only takes 1 of these to walk away. Trust me I feel your pain, I have walked away from about 20 properties that I though might be deals only to have them fail. But I will walk away from 100 "DEALS", then try to invest in something that is NOT a deal. While you are pulling your hair out over this one NON-DEAL, your missing out on 2 more that could be.

I conveyed it pretty clear to him I believe...I told him EXACTLY what I was doing. I even said "I'm going to be shopping your property to my private investors. Are you ok with me making a profit on this deal?" He said "I don't care if you make a million dollars on a dollar, that won't hurt my feelings one bit."

I offered more because I have someone who is running their numbers now and may be interested at 60k as a buy and hold investment. I won't force a deal to work.

Nick

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Originally posted by @Paul Ewing:

I don't blame the seller in the least. You gave him a contract to purchase his property with no intention of doing so. That is immoral, unethical, and fraudulent. You blatantly admit that and go on to say that you will be illegally trying to broker his property to others. The pittance of earnest money shows you are not earnest in the least about fulfilling the contract. And people wonder why wholesalers get a bad name.

I told him exactly what I was doing. I told him verbatim "I'm an investor and what I do is shop it to my private investors." I'm not being immoral, unethical, or fraudulent. I'm being completely transparent. If he isn't willing to work under my circumstances that is fine and he can decide to not take my terms and it won't hurt my feelings one bit. If he wants me to make an effort at the price HE WANTS then he has to work with MY terms. Now, if he were to drop that price by 10.5k (to my original offer of 45k) I would be willing to put up $1000 earnest money.

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I honestly am going to tell him that I need a way out of this contract because I have to shop it to my investors they may not take it. Especially given, it's not at the price I thought was a good deal. We negotiated for a couple days (through email because he has issues speaking due to disabilities). In addition, he wants $1k ernest money. As far as I can see he is getting everything he wants and I'm not getting anything I want. 1k earnest money and he is semi locking me into this contract. There are some contingencies that could let me get out of the deal. However, the 1k earnest money won't fly. He said he had it over viewed by his attorney, however, I don't think that was the case (tons of typos, grammatical errors, and so on) I believe he did it himself. He also changed the ernest money from $10 to $1000, and didn't adjust the balance due at closing. Leaving him with $1000 extra on top of what we agreed.

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So, I finally got my first deal rolling, however, the seller is trying to lock me in to purchase no matter what. Has anyone else encountered this issue? I sent him the contract and it sounds like he pretty much made amendments to keep anybody from getting out of the deal. I have yet to look at the actual contract but I'm pretty sure that is what he has done. He said he had his lawyer look over it and made changes so that if the other person tried to get out of it they would have a "leg up" on the other person. I have issues with this because I'm not a buy and hold investor AND I didn't get it for the price I initially quoted. I don't want to be sneaky or anything or put any verbiage in there that "tricks" him. Because I think that is just not a moral business thing to do. However, I do need to have a way out if once I shop it to my private investors they don't think it's a good buy. All advice is welcome!

Thanks BPer's!

Nick

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Has anyone used a contract for a 50/50 split between wholesalers? I'm doing a deal right now with another wholesaler that I am "trusting" as he is kind of guiding me through the motions. However, in the future I would like to have a contract in place where it's said that we split all profits over the price of the property 50/50. Is anyone familiar with this procedure or perhaps has a contract that would accomplish what I'm speaking about?

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Originally posted by @Anson Young:

I've only used listsource, its very comprehensive. You can pull all types of lists off of it. Its not the most intuitive user interface, so you have to play with it a bit to get it to do what you want it to do. You can also call them up and request a leads for 8 cents a piece instead of 12 cents when you are ready to purchase.

Well if I hadn't already purchased them I would have done that...lol but I will do it next time that's for sure!

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Originally posted by @Antonio Coleman:

@Account Closed how do you plan on using that list once you receive it. I'm always interested in the actions investors take when getting ready to contact their list.

I'm starting a direct marketing campaign. I pulled distressed properties that have had NOD's and have >60% equity in their property.

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All Forum Posts by: Account Closed

Account Closed has started 7 posts and replied 22 times.

Post: Seller won't budge off getting chck in his hand

Post: Seller trying to lock me in.

Post: Seller trying to lock me in.

Post: Seller trying to lock me in.

Post: Seller trying to lock me in.

Post: Seller trying to lock me in.

Post: Seller trying to lock me in.

Post: 50/50 split contract

Post: Purchasing list

Post: Purchasing list