What to do to prevent non-performers - have had 4 contracts expire without close

Bird Dogs, Wholesaling
1

What recommendation do you have to help prevent buyers from not going to close?

This is too frustrating :banghead

2

collect more earnest $$

3

Why did they not close?

Raj

4

Why did they not close ?
Darin

5

Mortgage lenders have not been able to give much information because of prvacy laws but they said there was no problem. So the title company said they had no problem but the buyer is nowhere to be reached so no close date set. Contract close date coame and went. This has happened four times in the past 4 months. I am frustrated to say the least. $500 earnest money really isn’t worth having had the homes off the market for 6 weeks. And of, need to start all over agian with a new buyer. Ugh!

6

You might wanna look at your deals and make sure you’re leaving enough profit/equity on the table for your buyers. Getting greedy and overpricing your properties will scare off your buyers in a hurry.

7

Still not alot of info to go on, but assuming that there is nothing wrong with the property and you’re simply having buyers not show up at the closing, a few thoughts…

  1. Get more earnest money. Don’t know the value of the prop, but obviously $500 isn’t enough to convince buyers to stay in the deal.

  2. Contract with only pre-approved (not pre-qualified) buyers or buyers with proof of funds.

  3. Get out your contracts and KNOW what you’re signing. It may be possible to sue buyer for failing to close the deal (or it may not).

  4. Get an agent. If you’ve had 4 buyers walk from this deal, then there is definitely a problem. Moreso than is being included in your info. However, I’ve never heard of ANY buyer in an agent transaction that simply disappeared.

Raj

8

If you are contracting the buyer directly without an agent, then get the full down payment up front not just earnest money. the 500 is what realtors are used to, it is not a condition.