OfflineToday is my first entry. I should had started this two weeks ago when I finally finished Dean's book "Be a Real Estate Millionaire" but better late than never... Anyway, right now I'm working on my first deal - or I should say deals. I have one seller who is selling two properties to a buyer that I found on Craigslist. The buyer is willing to pay a finder's fee at the closing of the transaction. To start off, I'm charging 2.5% as a finder's fee. So I get to the point where the buyer wants to do an inspection on the properties. So I tried to lock in the deal with the seller before he meets the buyer at the inspection, but the seller says he don't want to do an assignment clause contract. I told him I need that to protect myself from the buyer cutting me out of the deal. So the seller tells me he would pay me 4% commission if the buyer pays full asking price! The seller also suggests I draft a non-circumvent agreement with the buyer so s/he can't cut me out of the deal. I wanted to know if that's a good idea. I know the property won't be locked in but the seller doesn't want to deal with that type of contract. So in the meantime I drafted a Non-Circumvent Agreement for the buyer and a Finder's Fee Agreement for the seller. I can't wait for tomorrow to see how both parties respond. I hope I covered myself with my draft... I can't let the fear get in the way. Let's see what happens tomorrow.
Acquiring knowledge without application is like locking yourself in a room with a fortune.
Congratulations! You are on your way. Let us know what happens tommorrow and please keep us updated.
"If you cannot do great things, do small things in a great way.”
Napoleon Hill quote
Yesterday I was trying to get to the closing process with a buyer of two properties for a finder's fee, but today she backed out of the purchase. She said her partners wasn't interested in either of the two properties I presented but if I had foreclosures to let her know. I was disappointed, a little discouraged, but not turned off. I know this is a number's game and a buyer's market. I also know that many other people know this. So I have to keep up what I'm doing because I almost got the deal. It had nothing to do with me personally. It had nothing to do with the fact of many people doing the same thing. She and her partners simply wanted different property. If I had a larger list of properties there is a chance she would have selected something. So there is no reason why I should let my disappointment turn into an obstacle. I need more properties!!! So I must continue to search for homes and buyers! There's no resolution in quitting (unless you quit smoking). So I have to improve my schedule, place more ads, and make more phone calls. Damn! It's tough when you don't have the money to invest in a market like this, but tough and impossible are two different words with two different meanings. So here we go again. Just when I thought today would have been something extra special... It's just another day... Thank you all who left comments on my journal.
Acquiring knowledge without application is like locking yourself in a room with a fortune.
Today was kind of interesting. While searching for new property to list I found a huge green house that looked abandoned. There was no For Sale sign and there was a lot of plant life surrounding it. So I took a few pictures like I always do and continue my route. When I got home I started my research. When I got to the green house there was no mortgage record! So I found the BBL number and found the owner's name. Further research led me to the owner's phone number. First of all, the search said the owner was about 91 years old! Second of all, I called the number and the phone kept ringing. So the phone line works but no answering machine. Older people usually have the same phone service from years ago. No call waiting, no voicemail or answering machine. It kept ringing and ringing and ringing... The house looks unkempt and I don't see how anyone could live there in that condition... unless she's dead... I hope she's ok, but if she is dead how can I buy the house? I'll call again later to see if she's alright.
Acquiring knowledge without application is like locking yourself in a room with a fortune.
Today I was checking my emails and saw a few people who buy properties. So I called the first one and boy did we connect. He read Dean's book BARM but didn't know about the website. So I directed him here. So we talked for hours and I didn't get any work done, but something else was accomplished, I found someone with common goals, yet enough differences where we can compliment each other. His niche market is high end real estate and the average rental properties. We shared a lot within one day and hope things can work out. I also have to call another buyer. I'm getting more buyers than sellers! that's the thing I need for my niche market. Well, I'm off for now.
Acquiring knowledge without application is like locking yourself in a room with a fortune.
Hey - you're doing awesome! I love that idea for a non-circumvent agreement. That is brilliant! Doesn't tie the seller up, so it overcomes their objections, but prevents your buyers from shutting you out. PERFECT!
Let us know what you find out about the old lady's house. That could be a goldmine. If she is gone (maybe to a nursing home, or living with kids, etc), maybe the kids would sell it to you cheap. You could always go up and knock on the door, or ask the neigbors if they know how to get ahold of her.
Keep us posted!
Tracey
Thank you for the encouragement and for reading my journal. I didn't go see about the lady's house today because I was conversing with a potentially new partner, but I will definitely see about it tomorrow. I hope everything is fine with her though. There were no records on her family when I did my research. I usually come across a relative or associate or neighbor or something... I'll stop by the scary but potential goldmine home tomorrow.
Acquiring knowledge without application is like locking yourself in a room with a fortune.