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Hi Everyone,
I need help since i just killed a good deal…
Here is the Deal:
Out of state Owner/Seller is not desparate and won’t take a wholesale price on his Free & Clear property, but will take 80% of currrent market value.30 Day Sell Price (Market Value): $160,000
Offer to close in 60 Days Net to Seller: $125,000
Repairs needed: %0.00
6% Realtor Commissions: $9600.00
3% Towards End buyer Closing costs: $4950.00
Net Profits: $20,450 (MOL)What I did was negotiate this price with the intent to relist with a realtor, pay out 10% (comissions and buyer incentives) of the deal and Net 10% of the deal. (Like Jack talked about)
I send and “Option Contract’, a “Purchase Agreement” with a “Notice of Option Agreement”.
The Seller I guess got confused with the paper work and said he was not doing a Lease options , I explained to him that it was not a lease optionm then he said I would have more “Skin in the Game like (10%), again I explained I was not doing that and that the $100 non-refundable option was just for 60 days and that a Realtor wouldn’t give him any money yet tie his property up for 1 year. and by then the property would be worth much less.
MY QUESTIONS:
1- Has anyone had this happen before? If so how should I have handled this?
2- When I do manage to get another deal like this (Not an REO) from a homeowner and they agree, how should approach it and is anyone getting resistance from the seller regarding giving you a key or access to the property to be able to show and market the home?Thanks a Millions Everyone!!
Happy Investing,Will,
Tampa Invest LLC
813-598-8344Hi Will,
A contingent sale contract is sometimes easier to explain. Nothing optional about it. If you can’t perform on your end they don’t have to sell you the house. I have had good luck using a 90 day, non-recourse note as a part of the purchase/sale agreement. If for any reason I don’t pay that note in full then the whole deal is off. People understand that. I make sure they understand that to pay that note I have to sell, borrow or steal something, and it is by no means a sure thing so they best not spend it ahead of time.
When you are not face to face with them it is more difficult. Tell them before hand that you are sending some paper work and I am sure you are going to have some question so call me when you get it and we will go through it together.
I had a simmilar situation with a “Master Lease”. I just got it back yesterday signed.
It took some time to get her to sign, several converstions and a third party (daughter) to interveen.Don Wede
Will,
it sounds like there was a disconnect between what you told the seller and what the paperwork said – or at least in their mind there was a disconnect.
The way to solve this in the future is to make perfectly clear that the seller understands all the details about the transaction so there are no surprises when they get the paperwork.
It may be a good idea to tell the seller to call you when they receive the paperwork so you can go over it with them paragraph by paragraph. It is still important that there are no variations from the “deal” you originally worked out and the “deal” that is written up on the paperwork
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