#8….Let’s Close While We’re At the Beach ~ NOT!!!!!

Again; another bandit sign lead, but this was the Seller’s parent’s home…the one he grew up in. I just LOVE band it signs!!!

In early May; got a call from the VP of Deacons at one of the local churches. He said that a member had his parent’s home that he was tired of paying taxes/ins on and was thinking about donating it to the church. The Deacon said he thought he’d just try and give me a call.

This one was a 3/1 All-Brick Rancher built in 1955 with 100% hardwoods, and a large, 100 x 250 lot…in a pretty good neighborhood (for rentals). It was in need of a roof, plumbing & elec (all ripped out), AC unit replaced, and updated kitchen/bath, painting, etc….about $18-$20K.

Met the Deacon and Sellers that same afternoon for a walk-thru. Of course, there was no “asking price”. This just kills me, and just too common a response! I always tell them that they must have some idea of what they need, and that it would really help if they could give me a starting point. That was at $17K. I countered with $13.5 K, and we settled on $15K. We exchange contact info, and agreed to finalize the contract via email. They live and work in TN, but maintain their actual home in the Birmingham area and had to leave for TN right away.

We ended up negotiating terms on the contract. This took about a week and was finalized on 5/18. They didn’t like my $10 EMD$ and requested $500. No problem; I’ll just get that form the buyer my partner “already has lined up”! We also, deleted the “assignable” clause. Again; no problem…I actually somehow make out on Double Closings with my atty and net a little more than a regular assignment!! Don’t ask me how; it just happens (twice), and I don’t want to ask questions. LOL! 

Next thing was to work out logistics of getting the key. I decided to finally take a vacation. After all; it had been more than 7 years! We arranged for my partner to meet them the next weekend, show his buyer the house, finalize that contract and close in 7-10 days. Forgot this…when I told them my partner’s name; they said, “That’s the guy that keeps sending us letters wanting to buy our “vacant” home!

My partner and his Buyer did their walk-thru and we settled on $23K. Contract was emailed for signature on 5/31 . Several days passed with no news…I’m at the beach “already spending the money”!!! haha! At the same time; trying to schedule closing with out of town Sellers!

Come to find out; this Buyer has also, taken his family on vacation and just half-*** responds to my partners calls. Note I’ve got $500 soon to be on the line and NO definite exit strategy lined up!! Also, this is 6/1 and my Inspection Period ends 6/7!!!

Finally get back from the beach on 6/3 and started getting in touch with “my Buyers”. Found an old trusty one and he offered $21K. We settled on $22K and finalized the contract on 6/7!

Closing took place at the end of the day on Monday 6/10. Since this was a Double Close; we had to pay CC on the A-B transaction. With a 50/50 split; we should have netted around $3,200 each, but somehow each ended up with $3,576!!

I guess the “moral” of this story is:

1). Don’t rely on other people’s Buyers (or Sellers for that matter) if you don’t know them, or have never done business before!

2). Maintain control of your own deals!

Lessons learned “along the way”….NEXT! More to come, soon! 