WHEN A DEAL IS GOING BAD ???

Bird Dogs, Wholesaling
1

HELLO

So here is the story

After many a months of putting together a marketing plan and acting on the tips provided in this forum specifically by javipa. I have a deal that is right on the brink of closing i can almost taste the victory :beer

Problem is the seller is now causing all sorts of headaches for me and my end buyer with the title.

first she wanted all cash without using an escrow company this was not gonna happen.

then she wanted to use old republic title so we set it up there come to find out she had not filed all the neccecary paperwork to do the deal. the house is in her fathers trust and she claimed to have FULL authority to sell.

she says she had power of attorney and i have learned u need to be named the successor of trust to do this
( my end buyer has a trust and explained this to me )
as did the escrow officer
( who just so happened to be the sellers nieghbor )
seller wanted a 5k deposit and was anal about it
seller did not want to hand over trust docs to title Old republic
her and her neibor (escrow agent fell out )
so now we opened again with another title co first american

seller was again anal as all butholes about the deposit money
end buyer was weary but wrote another check to seller anyway for the 5k this is now the 4th check written to her

she has had an issue with all the checks first one was given to her made out to old republic then to her fathers trust and now she claims that her father does not have a trust account and she wants a check made to her fathers name to cash

i told my end buyer that it would be best to allocate the funds to title and she could get it there after she submits all needed documents.

chances are this will cause a problem with seller i feel she is not as motivated as i thought and or she is trying to dance around escrow somehow this has been consistent whereas she states she doesent like title companies because they always cause problems
(both title companies are her choice by the way)

i am beyond frustrated with this scenario :banghead

i was looking at a nice 8k profit and now she wants more so my spread will be cut to 3k :banghead

i am totally at my wits end with all the crap she is trying to pull seems she wants to get paid before the deal can legally close or she wont submit said needed docs for the trust to escrow :bs

this deal is going bad in so many ways due to this seller my buyer has been ready with the needed funds for a month now and she is holding up the process for her own reasons dont know why

i dont want to loose this deal as it will be the first just seeking a chime or two about the situation i got here

:help

thanks

2

ask your buyer if he still wants to pursue the deal cause if not i say walk sometimes you have to measure your amount of stress… maybe if you walk the seller will come back later with some sense… and hey pat yourself on the back youve done more than what 90% of people have done youve actually taken action so just rinse and repeat and find your buyer another deal…

3

You should paid a few dollars to have a title company to run a title search and it would have save you a lot of headaches.

4

chuck

my buyer is ready and willing to do this deal as he will get a nice 1k mo cashflowing 2 bd for 48k

you are totally right my stress level is through the roof with this one and was acceptable for 8k not so great for all the hassle for 3k but hey its still 3k more than i have to put into future marketing as i am determined to succeed.

REAL ESTATE SELLER

I know i should have ran title report first thing however i did not have the funds available and wanted to have my end buyer pay this fee

i now see it is worth it to make that happen one way or another and be done with it

title co OLD REPUBLIC is the one who found she had not recorded the doc needed to transfer the powers of the trust as she claims her hubby faxed it in but forgot the last page with the signature and notary

come to find out in contra costa county ( bay area ) you cannot fax these docs anyway they must be delivered in person to the recorders office.

thing is now that she says she has the docs needed she wont give to title until we give her another 5k check made out to her father i suggested to my buyer just wire money into escrow and she can get it then after she signs all needed docs told him this on MONDAY its now friday and this will be delayed as title says they must hold funds for 24 hrs :banghead

she is gonna freak i already know

5

Time to run, not walk away. You haven’t even gotten close to the closing table yet. Imagine what issues she will concoct by then. Your fee will dwindle to nothing.

As was mentioned earlier, mark this up to experience and move on

6

You’re dealing with a con artist, not a genuine seller…

“forgot to send the ‘signature’ page…” [and] “I want $5,000 in cash in my hand, or I won’t provide the documents…” LOL Really?

Move on.

As far as I see, we have failed to properly qualify the prospect, much less negotiate at all.

What I’m feeling here is that somebody appeared to be too eager to close on this deal. No concessions or trade-offs were part of the negotiations, if there were any negotiations in the first place.

As a result, the seller hadn’t been forced to work for the deal, so she’s forcing US to work for the deal. Why? Because she wasn’t forced to work for the deal. Either way, the buyer and seller have to work at coming up to a 20% discount on the price in order to achieve satisfaction in the deal.

It’s a myth that sellers want a quick, easy transaction. They don’t. They want “satisfaction” from the transaction; knowing they did their best to get “none of their equity” after the dust settles. Negotiations are about creating satisfaction in the transaction as much, or more than the final sales price and/or terms.

For example, we always ask for WAY more than we want, in order to slowly trade off those items, for what we actually must have. What we must have depends on the deal…

Meantime, we ask for all the furniture in the house, the classic/antique car in the garage, the patio furniture and pool toys. Why?

Because it establishes the “fact” that we don’t think the seller’s price is worth it, unless he’s willing to throw in some things to sweeten the value.

We don’t get everything we ask for, but after trading off the antique car, the 17th century antique clock collection, and the laundry equipment, we end up getting the price/terms (or whatever we must have) that we want.

However, we do get cars, antiques, nearly always some appliances, and furniture in our deals. Why? Because we ask for them.

However, the point is not getting freebies. It’s about sub-consciously undermining the seller’s opinion of value by going through the back door, as it were, and getting fairly substantial concessions, while riding on the price/terms. It’s more complicated than this, obviously, but you get the drift.

This passive aggressive approach you’re pulling with this seller, by agreeing to do what the seller wants, but actually not doing it, is dysfunctional and unprofessional. Either do it, or don’t do anything, or negotiate something you actually will do. But don’t “fart” around with an “I’ll do that, but not really” approach. It ruins your credibility and undermines your authority.

Meantime, the details of the transaction happen the way you want (or negotiate), or else you walk. Otherwise the deal can go all sorts of directions and it’s like herding cats. A seller cannot get command control of your deal. There’s only one captain of the transaction, and that is you, or else. Why?

Because you’re the one with the money, the solution, and/or the pain relief. If you aren’t actually providing any of this, then it’s a crapshoot what you’ll end up doing.

At the same time, this seller has pretty much disqualified herself, as far as I’m concerned. The moment she told you how you were going to close, it was over.

If a seller tells me that he wants to close through a title company on a sub2 deal (and cost me a couple of grand more to work the deal), I might negotiate a trade-off.

I say,

"Great, let's use the title company. Meantime, we'll need to lower the price by at least $15,000 in order make up for the extra payments I'm going to be making, make up for the taxes I'm forced to bring current; pay for the mandatory title insurance that I wouldn't normally pay for; pay for a title search that I can normally do myself; and just slow the process down by many days, that eats into my bottom line. So we'll just drop that old price by $15,000 and you can feel secure about our deal. Sound good."

If that doesn’t faze him, it’s probably time to get out of Dodge.

[b]That all said… sometimes the Seller has already been softened up by a couple of failed escrows, bad experiences with other buyers, or just plain worn out making payments, or whatever the pain source.

Frankly, I don’t like being the one to do the “softening.” I would rather come in when the seller’s back is against the wall. And that’s why I like to qualify the seller up front, to determine where we are in the “softening process.” If we’re not far enough, I move on.

This seller doesn’t seem to have been been softened up enough at this point, and just to add insult to injury, you’re not applying any “softener.” That’s fine, except the satisfaction level on the seller’s part just isn’t there, and therefore until such point you can manufacture some satisfaction by forcing the seller through some hoops and concessions, you’re likely not going to close on this transaction.
[/b]

7

Maybe I watch too much TV dramas, but I don’t think she has the right at all to sell the house. Either she is trying to con you out of the $5k, or she is stalling hoping to get the authority to sell the house, or both.

I am new too and I was very excited and eager when I got my first house under contract. But then I couldn’t get an end buyer, and my sellers would not come down in price, and I was so stressed, I could not sleep and had a constant headache. I decided that I was gonna walk, and when I tried to get the seller to come down $10k one last time and they said no, I told them they should list the house in the MLS and that I was going to send them written notice cancelling the contract. I turned to leave and had my hand on the door, when the husband asked if we could meet half way? They dropped the price $5k, I got a buyer the next time I showed the house and made $6k from the deal. People say my bluff worked but I was not bluffing, I was genuinely ready to walk away. Does that mean you should try the same thing? Only if you really are ready to walk.

It is important to note, my sellers were a sweet older couple that really liked me personally, and that made them more willing to work with me. Also, they were good people, did what they said they were going to do when they said they were going to do it, and actually had the right to sell the house.

I hope this helps, but I feel I may have just made deciding what to do worse.