I’m still licking my wounds on this recent deal w the dragon ladies. I havnt heard anything from them or Title or buyer for a week since starting escrow, which usually means good news & things are progressing smoothly.
My seller that has the 2 yr old house that I offered 10K over mortgage amount is being evasive, she called and wanted to meet me, I told her I need the contract signed and a copy of her statement, she tells me she has to wait till the bank mails her one, I tell her just take a photo of ur latest one and txt or email it to me. She’s insisting that I meet them. I tell her I need this info before we can move forward. I’m getting a bad feeling, she’s so evasive. Her husband works out of town thats why they havnt signed it yet, she says, but now he’s back and she wants me to drive the 50 miles to her house and then they will sign it. They want 90 days to vacate. I’m kinda desperate for some deals so I may have to be the passive agreeable walked all over investor.
Or not.
One of my bird dogs named Steve that I been trying to motivate for years emails me, he says he started a buyurhome website and sent me a lead. The homeowner an Asian lady tells me she is trying to avoid foreclosure and wants to sell. The property is worth about 170K It’s a nice 3/1 1100 SF built in 57. The bad is she owes 158K and this house needs new roof and updating, has the old windows. I asked her if she wud accept some cash and walk away and she says yes she wud.
I offered her 2K in cash and offered to take over her mortgage. It seems she purchase the property in 04 for 125K so she must have borrowed against the property heavily, I estimate she got a 50K loan.
Google satellite maps shows a huge lot, 9,000 SF with a pot farm in the back. I told Steve my plan for doing a Sub To or long term lease purchase, and we wud bring in a buyer with a good down payments to split, and he said, “Go for it”.
My bird dog Steve is a good guy but has a negative dream killing old battle ax wife that thinks I and everybody on this planet will rip them off. I never gave up on him and a few months ago I purchase him a nice little Sony boom box with Bluetooth and a USB input and I recorded about 15 hours of real estate stuff and even some hypnosis motivation MP3’s. He came over and picked it up. I’ve been trying to get him in gear for 6 years and he has found us a bunch of properties and we almost did a few deals. I’m glad I kept at it, we all need a kick in the ass. But how do you over come an over bearing negative spouse?
Sub2-By-Phone can work, but because it’s a trust-based transaction, it’s way better to show up in person and close.
Practically the only ways I’ll present over the phone, is if the seller lives out of state, or has abandoned the property. Otherwise, all the deed holders and Uncle Henry who’s into real estate (aka all the folks who will be weighing in on the deal) have to show up and sell me on the deal.
If they don’t try to sell me on the deal, they can just hold on to their half-acre of Hell.
I mean, I wear the ‘buyer’ cap, and the seller wears the ‘seller’ cap, because buyers buy and sellers sell, and I don’t get the hats confused.
The reluctant spouse needs to directly share in the profit rewards from a successful real estate deal; candy or flowers, or furniture and/or cars. Eventually any spouse will be supportive and chomping at the bit for deals to close. It’s like the adage “The stink of failure is best deodorized by success.” Same goes for a reluctant spouse and real estate.
I got an email from the Title company today asking for the sellers contact info, this is great news, it means they have run the prelim title search and it looks clean and they will be calling the seller in to sign the final papers.
This is where is gets interesting, the old guy is sick, maybe he can make it to town to sign or they will send a mobile notary. What happens when the crusty old dragon ladies find out its not me they are selling to?
As for the actual seller, I don’t think the old guy cares really, and when it comes down to it, they want that 50 Grand and won’t care if an alien from the planet Zorgon is buying it.
It’s the wild West, my guy Matt emails to say one of the dragon ladies gave him the riot act that the blankity blank Rando wasn’t the one buying the property and she was going to talk to a Realtor. Matt says everything is ready to sign.
It’s funnier than, I can’t think of what its funnier than. I emailed Matt to give me our buyers name and maybe I can smooth things over, like crawl on my belly and beg for this deal from the wicked witches.
Or maybe I’ll just wait and see how it plays out.
The old guy (our actual seller) has to put his foot down at some point, but then, these hens have ruled this roost since day 1.
It’s not like I didn’t consider this happening. The daughter is a vicious control freak from the get go, and then add a bad attitude mixed in with some anger issues and wala, seller from hell. She chopped my purchase contract to hell and spit it out in flames and I didnt want to argue anymore.
I was hoping for the best and expecting the worst. That’s what keeps me from going insane.
If so, lien the property. Then the wicked step-sisters can do whatever they want with the property, except sell to anyone else without your cooperation.
Maybe they’ll want to buy you out of the agreement (insert evil laugh here)? Then you can get paid ‘not to buy (insert another evil laugh here).’
This is past the signed purchase agreement. This sucker has been tagged but not yet bagged. Sitting in escrow waiting for Bernal the unfortunate title holder to come in and sign final papers. He’s 76 years old, sick and I’m guessing he has put up with this domineering tag team since he tangled up with this crazy ass woman when his lower brain was doing all the thinking.
Putting a lien on the property is a great idea, but once the old guy makes his untimely earthly departure, were talking family strife, probate and more crap than is in all the bat caves in Brazil.
Your PA and subsequent lien would survive probate. The survivors would still have to sell to you.
I routinely record a notice of agreement against real estate. The real issue is timing. The lien needs to be recorded prior to any other liens in order to secure your equity position.
My buyer/realtor,wholesaler Matt called yesterday. He seemed depressed, saying he had talked to the daughter and she was upset that I was not the buyer and the contract was being assigned.
Matt asked me to call the dragon lady and explain the situation. It’s only 2 Grand for him and he’s a big time realtor/broker in this town, so I’m thinking this 2K will make his Escalade payment & keep him afloat.
Of course it wud sure help me survive. So I’m gona crawl on my belly, slobbering and try to win this battle.
I told Matt I’ll give it a shot, here is what I sent to these ladies.
Hi Roberta, my wife and I really wanted this property but we are scared of all the work it needs and the high price. Our friend and partner Diego can handle it, he has the experience and knows how to get sh-t done. And he’s paying us a few grand out of his pocket. Sorry bout the misunderstanding. Can we get this deal done? Randy & Miriam.
I didn’t tell Matt about how difficult this woman is, but I think he had a good indication when he talked to her.
I got no reply from them yet, my next suggestion wud be to have Diego call them, he’s our buyer, the daughter said he was nice and pleasant. He’s Hispanic like they are, and I’m the bad gringo.
I cud waste a lot of time thinking and worrying about this deal, but, I’m gona stay positive and send out some letters to pre-foreclosures and fix a great meal and take a nap.
Matt and I are co-wholesaling this property. Since I don’t get along with this seller, maybe Matt can, or not.
Now, I may have the buyer give it a go, since he met the angry daughter and she said he was nice and pleasant.
Yea, normally, I wham bam these and keep sellers and buyers apart till the closing, but these are the sellers from another dimension.
Why wud these crusty old psychotic women insist on selling only to me? I met the old lady once and been txting the angry daughter for a week and it was confrontational.
I’m ready to give up on this crazy train and look for better and easier and more profitable deals.
I’ll let Matt and the buyer Diego try some magic and some friendly persuasion.
An Investor named Dean, in a nearby town and I are always txting and looking over each others deals.
He had called me a few months ago and We talked about how slow the action is and wat we need to do to get crap happening.
He tells he’s got this 3/1 w studio in back for 45K, I ran a few ads on Craig’s list in Bakersfield California the nearest city. Taft is a migrant farm town with a population of 1200 on a good day. It also sits in the desert basin and I heard it gets seriously hot there and way cold in the winter. Imagine also a featureless landscape and if your being tared and feathered and banished, paroled here wud be the harshest punishment…
Well, I never got one stinkin call on my CL ad, and a house in Calif for 50 Grand is rare, but this location sucks that bad…
Then after several months, I get a call on the house. The old ad was still running. Buyer had questions but I never been to frikin Taft. I tell him to go look at the property. Next day he calls and wants to know the lowest price, I tell him 50K is rock bottom, he’s gonna talk it over with his partner… Now, I had a feeling this guy wants this house and this is insane part, I didnt even know if it was still available.
I txt Dean, You ready to sell that fixer in Taft? 2 months ago he was firm at 45K I tell him, how about 40K with sugar on top? and he replied, how much sugar haha.
I didnt get any more response, So I txt him, I’ll write up the agreement. I was feeling confident cuz I didnt get a no or nothin.
Now this is some exciting sh-t. Negotiations are fun for me. The high I get from doing this is intense. So I send him my purchase agreement for 40K and he signs it, he changes the 30 days into 15 days but I was still slobbering all over myself…
The next morning I just knew this potential buyer wud be calling. And he does. We agree on 48K. I make up the Assignment for 8K and buyer signs it. I inform Dean that buyer wants it and he wants to use his escrow company in Bakersfield and close in 2 weeks. Dean says, let’s do it.
Dean hasn’t asked how much I’m making, he’s prob going to be a little pissed, he purchased it for 31K and prob had expenses and I might be making more than him. This is a deal that just fell in my lap. I’m actually disapointed in myself that I gave up on it b4 when I cudnt sell it and somehow got extremely lucky.
This is Great news, soon I will have marketing money and greese for the wheels.,
My buyer txted me his email, I send him the Assignment to sign and listed the terms.
Purchase price $40,000
Assignment fee $8,000
Total $48,000
Buyer pays closing.
I also included a copy of my signed purchase agreement with Dean my seller.
Soon I got a signed assignment and later I get info that escrow has started with all that info and then I hold my breath and send it all to Dean.
Holy crap, Dean hasn’t replied. It’s going to smooth and easy, what kind of craziness is this?
This deal is moving forward, I actually think it’s gona happen. A girl named Heather, from the Title company calls, I give her the Sellers phone number, she wanted to know what his title was and I told her, Owner, she wanted to know what my title is, I tell her I’m the wholesaler, the middle guy. She had a sweet voice.
Then the buyer txts and he wants the combo to the padlock on our fixer he’s buying. Our seller Dean txts it back to me quickly.
This is where our buyer goes inside and does his final inspection with his partner and boss, his wife Veronica.
I’m only sightly worried, cuz the photos show a livable house, just has the original cabinets and doors and plumbing and lighting etc. from 1941. And the studio apartment in back is not trashed. I thought it was a smokin deal, I only gave up on it cuz it’s in frikin Taft California, a tiny desert town between hell and nowhere.
To early to count my chickens, but there cud be about 8,000 of em.
This concept even after 50 deals is insane.
Find a distressed house, add an amount you want to the price and hand it over to a rehabber thats begging for the thing.
Who’s gonna believe that?.
The way I know everything is going smooth and a possible payday is coming is because it’s quiet. I know the
Title Company is doing their work and its time to roll a big one and relax.
So when the phone rings and I see it’s our buyer calling a 9 AM, I start to panic. I slowly grabbed the phone fearing the worst, and answered. The seller is a friendly guy. he telling me the preliminary title report is back and he thinks they can close this Friday. That usually means the following Friday.
I tell him, wow, you guys don’t mess around, then he tells me he wants more. He says he has people mad at him cuz he’s not delivering.
It’s bout time to crank up the marketing. I’m feeling it.
Our buyer calls again this morning, he don’t know how much that scares me.
He tells me he will deposit funds into escrow today and we shud close by Friday. Yea sure.
I txt Dean that our deal is being funded today. He says he called Title and got the updated paperwork and will overnight the new signed chingo today.
Holy real estate gods, can this deal really be going down this easy and fast? Will Rando grab his 8 grand and ride off into real estate sunset with profits that he did hardly anything to earn? Which consisted of A frikin ad on Craig’s List and a few phone calls, emails and txts? Will he go mad?
It’s Amazing. I wud believe aliens visited earth eons ago and bred a race of humans as a workforce than believe what just happened.
The girl at Title called and wanted an address to send my check to.
I’m kinda in shock. It’s been exactly a week since the buyer first called me.
I cud hav drove the 100 miles to Bakersfield to get my check but then how cud I brag how I sit on my ass, never leave the house cept to go Walmart, and make 8,000 Frikin Buks?
Let’s do it again.
I buy my lists at listgiant, but my last mailings to 2500 absentee owners I only got a few calls and one deal for 2K and that one fell apart b4 closing. But I usually double or triple my money.
This latest deal I got was from networking with another investor.
Seems the market is changing, leveling out or bubble bust?
My fav guru Ron Legrand says we can make money whatever the market is doing.
So, I’m gona hit it again. New post card designs, more bandit signs, try the door hangers again and will recruit more bird dogs.
I’m still in disbelief, the check arrived in my mail box yesterday, that’s Monday and the deal closed on Friday. I’ve had that 8 Grand check laid out on my desk for 24 hrs now. I like looking at it. I got it all propped up, it’s so colorful and makes me feel so warm and fuzzy. This deal went down in about 10 days an that includes 2 weekends in the middle. I might get over to the ATM and deposit this check, then another few days for check to clear and then it’s, come home to Daddy.
I had a desperate homeowner call me yesterday, he has a nice rehabbed home, squatters and expired listing, he’s stuck with payments, he moved w job transfer and I cud feel how desperate he was. He told me the whole story. He owes 170K $1,300 a month in payments. Disgusted with his realtor. Value on home is about 190K But the darn squatters stole sh-t and left the place in a mess and now he cudnt sell it and realtor screwed him and yada yada.
This guy just might be desperate enuf for the Sub To deal, Take over his payments and leave existing loan in place and I bring in a new buyer with 10K payment to me for putting it all together.
I’m salivating thinking about it.