First Real Deal was the Hardest
My first real deal was probably my most difficult. I had been making a good living doing Finish Carpentry on big custom homes here in Central California. When that dried up I sold my work truck and purchased a course on doing Subject To’s. Soon after, I began advertising on Craig’s List that I buy houses, An older couple called and they explained they were ready to retire and couldn’t afford their home, I had it wrapped up on contract and found a buyer in 24 hrs… When suddenly, they tell me they decided not to sell. I was going to make $8K and was thinking wow this is so easy. Then the hammer fell. I was totally devastated.
Soon after, a local investor calls and explained he had a house he couldn’t do anything with. He told me the seller went thru a divorce and the house was underwater by 20-30K and the seller was trying to get $6000 out of it.
I called the seller and he told me he had the house rented, and was one payment behind. I offered to just take it over, I would make up the back payment and let him save his credit and he could walk away debt free… I explained the house was underwater and he was a payment behind, the obvious thing to do is to just let it go. Anyway, that’s how my $997 Sub To course said it should go down.
He told me he needed 6K because of the improvements he made. I started advertising and I only got a few calls, it was a gorgeous 2 year old home, however it was not built in the most desirable area and it was 5 miles from the city.
Eventually I found a buyer that had $6,500 saved and was willing to take the house. Over the next several months I tried my best to get the seller to drop his demands to at least 4K so I could make some money, but he held fast.
Finally he calls and seems a little desperate, he tells me the renters have left and have trashed the place and he agrees to take the $4,000
I call my buyer and we all agree to meet the very next day at the house.
The house was nice, just needed paint and carpets cleaned. After the buyer says he will take it, the seller pulls me outside and says, you know, I just can’t let it go for the 4K, I need the $6,000 The deal was falling apart right in front of me, the worst part was, I didn’t have this house on contract like I should of… My palms were sweating, my heart rate had increased.
I explained to the seller that we had a verbal agreement and that this was our only buyer and it took a lot of doing to find him. I tried to explain, this guy’s got the money and wants the house now. Could this greedy seller see the desperation in my face? Did he sense I was stressing out big time?
Then the seller asks me, will he rent it? I’ll just rent it again. I told him this guy is a buyer not a renter. Should I go in there and tell him there’s no deal? He says, yea.
I had dry mouth, this was not how I planned it, my 2K profit was flying out the window.
I was almost ready to throw in the towel, crawl in a hole and lick my wounds. Then, Lo and Behold, I had a revelation, a brain flash, how about if the buyer pays you the extra 2K in 6 months? He says yea, that would be ok.
We went back inside and unbelievably the buyer agrees to it.
He also agreed to make up the back payment within 90 days.
I got the seller the 6 Grand he wanted, I got the buyer the house he wanted and I walked out of there with $2,500 Cash. I waited till I was down the street and around the corner b4 I let out a high decibel screaming war whoop. My deals since have been much easier and a lot less stressful.
