I think I just lost $3100 on my first deal

do you have anything in your contract that if the contract expires, you get your earnest money back?Or anything in the contract that can get you out of it somehow?Maybe an inspection clause, partners approval, anything of that sort?I know for myself, in the contract, we have a few out clauses that get us out for whatever reason, along with getting the earnest money back

I agree with mark. Look to see if there is an escape clause in the contract.
whats done is done,try to find another investor that can move quickly or ask for an extention.Try a local real estate club for a HML. I hope you get it done one way or another because that is a expensive lesson.either way i commend you on taking action,going forward you will not make that mistake again. maybe you can take the contract to your lawyer so they can tell you if there is a way out of it if you can't get funding.
In the future call your coach before making a move and tell them what you want to do and they will advise on the correct way to go about it.I believe Anita just gives a copy of the check with the contract stating that funds will be paid at closing.
Let us know how you made out.good luck.
Richie.

Why so much earnest money? $500 is enough to open negotiations. Also the bank automatically getting your earnest money is not a law. Try to have your attorney get an extension. Was the contract contigent on you getting financing? There are plenty of HML's out there. Go to Craigs list and find another or your local newspaper.

Now get out there and make it happen. Being depressed won't resolve anything. Turn this negative into a positive.

Bruce

I have learned the hard way that having a pity party is not going to help. You have several options...

1. Call all the "We Buy Houses" ads and see if any of them want to purchase the house?

2. Ask for a 1 or 2 week extension from the bank and than use that time to find an end buyer. Add the end buyer to your title, let the end buyer close on the deal wit his funds.

3. Chalk this up as a lesson... ALWAYS have escape clauses. If you saw that by the end of your inspection period you didnt have the funds than you should have used the inspection to get out of the contract.

You ALWAYS get a non-refundable deposit from the investor once he/she agrees to purchase the property. If you're wholesaling the deal and your getting a large fee than you should of asked for a $5k deposit. If the investor doesn't have anything vested in the deal than there is no reason for him to close. Your case is a prime example.

KimmyJ

i think it only seems like you bit off more than you can chew but the truth is, with the lord, anything is possible if you put your mind to it!.......besides, there's an old saying two heads are better than one!..and in this case its more like four, you, mark, bruce, and me. anyway i've actually been working on my buyers list of investors and even though im a newbie id like ta think i have a line on a few good ones.so if you can't find any, i found about three or four in the sunday paper...and if i can help.......just let me know...sincerly...mikestime.

Thank you to everyone who responded. I really need the encouragement! This first deal is going to propel me into a new life! I know that.

To Onthelynx - my realtor insisted that the $3100 would close the deal. The offer was accepted so I don't know if she was indeed right that the bank wants to see some "skin". In hind sight I should have put less down and used my own Offer to Purchase contract.

This is the FIRST offer I put in. I really never dreamt it would get accepted. The bank accepted it in 4 days. I thought this stuff took a lot longer. This realtor office is doing a lot of the foreclosures in Providence. This woman seemed to understand how the banks are working from closing a bunch of deals already.

The contract is really simple. Offer subject to the following terms:

1.Good and sufficient title.

2.RE taxes, rents, fuels, water charges, etc. shall be apportioned as of date of the delivery of the deed.

So - this morning I got a call from my Craigslist For Sale ad. I have been posting the house in 2 different ads. One I offer lease to own and the other is for sale for $62,000. I have an 800 # set up for the lease to own option. Anyway Luis called and he is a CASH BUYER and is very interested in the house!!!!!!!!!!!!

So any more advice is REALLY appreciated. I would like to do a double close with Coastal. I already have the title work from a lawyer here in RI. I also have the insurance binder done.

I am going to call PMI and then Coastal.

So please stay tuned to Sunshine's first deal! It's still alive!

Frankly Sunshine that is AWESOME!!!!

Sometimes we work better under stressful situations. When you had a crunch you had to work that much harder and may even come out ahead of where you orginally thought!

We're impressed that you are powering through, plus you'll probably learn so much more from the deal now that you've had a small stumble. Not to mention you've had to "think a little different" about how to make this happen. Exploring different strategies is a great way to learn and build confidence!

Next think you know - you'll be giving us all advice

That should teach you that no matter what, don't give up. It all tends to work out at the end

I was like, "omg.. I just finished reading the "Profit From Real Estate NOW!" book and this is the first post I see."

Then I see how much support you got and the way you used the strategies that Dean teaches in his book and I'm now like, "SCORE!"

You so rocked!!! Congrats on turning lemons into lemonade Sunshine! and also thanks for helping me believe even more than I did before I started the book yesterday. (Can't believe I read that whole thing in a day and a half)

We are here to support one another. If you stumble let us know. Often times people want to talk about the successes, but we are here to work through the challenges too.

There will be plenty of OMG's along the way. Just reach out to the DG family and we'll throw some spirit fingers your way!!!

nice job Susan...Never giving up is def important...Even when things seem to go wrong, usually there is a way to fix it, or work around it somehow...Just gotta keep going at it, and working to make it work for ya...So I say, very nice job, and that is great...Good luck, and keep us posted