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I lost a deal today and wanted to give some information for everyone. Maybe you can give me ideas for the next one.
I’ve never used an option and thought I would tie this deal up with an option with a regular contract ready to go if I decided I wanted the whole deal.
I had a lady call while I was at the event in Las Vegas.
She had a 4/1 house in a lower area of town where I live (small town of 8k).This property is on the tax roll for $59K but won’t sell for that because of these things: no central air and heat, needs carpet, paint, some roof damage. The floor plan is of a house that has been built onto for a while…all chopped up.
I’m guessing it might sell for $42K tops but won’t go bank financing because it won’t inspect (no screens on windows, old plumbing, old breakers, etc.)
She called me again and said she owed $15K and wanting $10K for another house but she wasn’t sure..she might need more.
This was a great deal to wholesale/flip…I didn’t want to pay more to fix and sell because of what it would need and especially where it was. I knew I would have a long wait for my money.I still have a part-time job and couldn’t get to her house until about 2 hours later. I told her I was bringing a contact and she was ready to sign.
ONE hour later she called back and said her banker told her that WASN’T a good deal for her and I wasn’t offering her enough. HE said she could get $50K for her house.
I made the mistake of not dropping everything and getting that deal signed up…looking back though it might have been a mess if the banker got into the deal after it was signed.
I thanked her for her time and told her if it didn’t sell to please call me back. I could tell by her voice she now thinks I will cheat her…all thanks to the banker.
I do hope he will buy her house for the $50K because no one else will. The kicker to this is..the banker wouldn’t give her another loan for a new house without $20K down..because of her age.
Dead deal. DARN
Great $uccess,
Dee-TexasWelcome to 3rd party influences. They will always be an Achilles Heel. The proper response I think would be, “Is the banker prepared to buy the house and take on all the risk of the property for $50k? If so, you should sell to him.” Bankers are right after politicians and lawyers on my Bottom 5 list.
Congratulations on finding a new 3rd party to mess up a deal. Usually for me it’s an “in law” or sibling.
HOWEVER, hang in there with a dialogue with the lady. Until the banker ponies up the $$$$ to buy, she’ll be holding onto that property & if you maintain friendly conversation and understanding with the seller, there is a reasonable chance she’ll come around to understanding that you can help her NOW as opposed to the banker who won’t lend her the $$$ or buy the property. The picture you paint of the property tells me that you’re her only game in town willing to buy. Time is on your side if you’ll look at this as a “time out” rather than a lost cause.
Hank
Dee
I bet you get this one later. Hang in there!
Jackie
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