Can you justify this deal?
I sometimes come across these situations that I have to justify, and question my morality and even consider my conscience.
Recently, I had a bird dog send me an old house in the worst part of town. I sent owner a post card and soon met Maria at the house. It was a grand old house built in 1918 but it had never been updated, she tells me she grew up in the house and back then the area wasn’t so bad. I offered her 25K but she was firm at $43,500, I went ahead and got it on contract for that amount. I estimate the ARV at 80-90K I thought I might not be able to sell it but then I often surprise myself and with wholesaling there is no risk, I can simply walk away.
I tried for weeks to sell this property and finally I got a buyer willing to pay $48,500
Then we waited, my buyer was taking forever, I finally called and he seems to have forgot about the house and wants me to send him the details again. The contract with the seller had expired, she was calling but I told her to just hang on awhile longer.
It was worried the Realtor buyer wasn’t going to perform on this property. I finally lost faith in him. I called Maria and told her I could not sell her house because the price was too high, the house needed too much work and also because of the bad area.
I told her I cud do 30K, she said definitely not, but soon called back and said her husband was pressuring her to get rid of it and she would do $32,500
I met her the next day and got her signature on the new contract and she was insistent on only giving me 10 days. Then I started running new ads, and that’s when the crazy thing happens, my Realtor/Buyer calls and says he has funding and the deal will close in a few days.
I email the new contract to the Title Girl along with the new Assignment for $16,000 Now, I start having those pesky feelings of “Am I doing the right thing here?”
The Title girl actually had the sellers come back in to re-sign the new contract that reflects the lower price of $32,500 The price to buyer is still the same at $48,500
I have $2,000 going out to the bird dog but now instead of clearing 3K, I’m skating away with $14,000 Buyer emailed this morning to say it was closing today. Title Company just emailed me to say I have 2 checks waiting to pick up. This check for 16K and another one for $12K, got one check for 6K last week and just closed on a house in Maryland 2,000 miles away for $3K assignment fee. I also have a $7,000 deal closing this coming week. After paying out 2K each for my 2 bird dogs I will have a record setting month. $36,000 friking dollars that I made in one month.
I never thought I cud out-do the $28K I made last month.
Now, back to my conscience. Of course I can always justify my actions, I really think the house is only worth 25-30K, it’s in such a bad area, it needs 50K in upgrades and repairs, so, seller is lucky to have got the $32,500, and if I try hard I can come up with even more justifications.
This is crazy, the seller just texted me to say thank you and that the keys were available to my partner. OK, It seems seller is happy, my buyer is happy, I’m happy and so is my finder. If everybody is happy why am I worried?
Let’s make some Money…… Rando
I just picked up that check for $16,000 Frikin Dollars, and another one for $12,000, and I just sold a Trailer for $1,800 that came with my plane and I also sold just sold my old pick up truck for $6,500.
I have 2 deals closing this week for 10K and I just got a house on contract and sold last night for an $8,000 assignment fee.
Some crazy times.
I never wud have thought I’d have 50-60K in my bank account.
But can’t stop now, it’s addicting, I got more deals I’m working on.
Let’s make some Money…
Rando
Hi,
Your going to come to the point by the end of this year or beginning of next year that your going to need a couple of full time associates to work with you on marketing / advertising and in contract process / closing so you might start giving some thought to how you do that, do you need an office and how much do you grow over the next 1 to 3 years?
There is no reason you can’t do $100k a month or more!
Good luck buddy,
GR
I just sold that 8K deal yesterday. I got that one on my own.
I just sold a 12K deal this morning with 2 K going to my finder, 4K going to a wholesaler that got it sold and 2K going to a Realtor and 4K left for me, I don’t mind sharing the wealth, Cuz, where wud I be without this help, I wud have 100% of nothing.
I had to vacate my cave in Northern Idaho, & come back to do some deals. Trading raccoon hides and deer antlers was fun, but I got tired of skinning and eating varmints and it was messy.
let’s make some Money
Rando