i am having the hardest time getting closed. i find the properties, i get the motivated sellers to accept my offers, i find buyers, i get contracts on my properties, i take pictures and do property inspection worksheets, but i cant get closed. i talked to an investor friend of mine and he said i am missing a step in the process somewhere. if i can figure out that step, then all my deals will close and not only close, but close faster. my uncle said that the hardest part of this biz is going to be getting my deals to close and if i figure that out, then it will happen each and everytime succintly. so i want to know from some seasoned closers out there (keith, ted jr, mike hearn, and so forth) what do i need to do to get my deals closed righ now. i have 3 wholesale deals outstanding that i am unable to get close and i may be losing buyers as a result of my ignorance.
I’m not sure what you’re missing. You found sellers, got an offer accepted, and signed a contract. All you have to do is assign the contract to an investor/buyer. I don’t know why they would say thet you’re missing something.
I began to write a tome on why deals generally don’t close. However, I realized that this is the wholesaling forum. So, I’m guessing that you want to know why you can’t sell your wholesale deals in time to close?
If so, I have much to say about this since I turn down alot of assignment deals that come my way simply because the assinors don’t present a compelling case on why I should buy from them. I can give you my top five reasons why I think wholesale deals don’t close from the assignees perspective if that’s what you’re after.
When your investor friend said you were missing a step, did he say what step? If not, ask him.
A couple of possibilities that I hear a lot is either the price is too high for an investor, or they are not in the right areas. I would think if the price was right, they would be sold. Ask your buyers why they aren’t closing…that seems to be the best way to find out. Maybe some of their buying criteria isn’t being met. Just a guess.
Maybe you should post some examples, then some of the experienced investors might be able to give you a more educated opinion. Good luck.
Umm, call a title company and schedule the closing? It sounds like you have a signed contract to purchase and a signed contract to sell. It’s up to you to schedule the double-closing and make it happen. Realtors or mortgage brokers sometimes schedule them too but if you aren’t using either one then you have to schedule it.
after i posted this message i spoke with a member of my reia and he said “i am having sex with cindy crawford tonight. " I said, ''huh?” He responded, “yeah, i am having sex with cindy crawford tonight, did you know that?” I said, “uh, no?!?” He said “yeah! i just gotta wait for her to call, but when she does, we are having sex TONIGHT!” dumbfounded i said, “okay?” He replied to me, “you could tell me that you are having sex with tom cruise tonight, and you are waiting for his call, but when he calls, you two are doing it. and that is why you arent closing.” he later explained to me that when potential buyers call me it is just like me and we discuss a deal it is just like saying ‘i am having sex with tom cruise tonight’, but until they give me an EMD with a sign PA, i’m just waiting for them to call. he told me that most of my potential buyers are probably newbies, and are interested but not quite sure if they want to buy or not. i told him, that i thought my PA with my seller happened at closing, and if it doesnt, then what do i need to do to commit my buyers or weed out the ones who arent really serious. he said, you just gotta present the deal to them and let them know that if they want it to give me an EMD and sign the PA or stop calling me wasting my time.
I’m not sure if I understand the issue. If you have a buyer are you collecting an assignment fee when you assign them the contract? If you’re doing that, then the contract is turned over to them and it’s their responsibility to close. You are really out of the picture.
Maybe you’re trying to collect the assignment fee at closing and that’s causing the problem. If you have a buyer that has no money invested in the deal, they may take their time waiting to see if something better comes along. The buyer needs to have a financial interest in the contract so they follow through. If you can’t collect the entire assignment fee up front try to collect at least 1/2 of it.
tom,
that’s exactly it, i am trying to collect my assignment fee at closing. i was trying to do that because i dont think my buyers will follow thru on a deal if they pay me my assignment fee up front. so if i request 1/2, then should my EMD be my 1/2 and the rest payable at closing?
It would be ideal if they pay you the full fee up front, you assign the contract to them, give a copy of that assignment to the title company and then you’re out of the picture.
However, most buyers may prefer to pay you at closing. That’s where I think the compromise of 1/2 of your fee up front and 1/2 at closing may work well. Your EMD could be included in your assignment fee or entirely seperate. You really want more than just your EMD up front, you want at least part of your assignment fee up front as well.