Deal #8 So Cal 7k Deal saved!

Ok so all is going great am at a level of supreme confidence, I just did my 8th deal! 7k coming to me from my buyer & he put 40k in to escrow non refundable so he is defintely closing on the prop, deal should close Tue 3/31st, I wrote about this deal a wk ago thinking I had lost it.

So I locked the deal up from 25:1 for 370k ,ARV 520k rehab 60k buyer w/make 50k (bc he has cheap labor his own $ not using hard money & uses cheaper but good materials from Mex)

so the sticking point w/my buyers w/that they werent going to close on the prop until the seller moved out but i had agreed to close the deal with the seller staying in the prop for up to a month while she went thru her husbands things seeing w/one's she wanted to keep & that she w/rent back the hm for $1,500 for that mo. (big mistake:)

seller was a widow & w/going at it very slowly, God bless her.

Well my buyers(s) did not like that since they had been burned by folks staying in the hm for mo's after close of escrow & losing ton's of $ w/holding costs & not being able to start rehab on the props & having to evict the them, CA is a friendly tenant St & it can take up to 6 mo's to get someone out of a hm! & cost a lot.

So it was looking like I w/going to lose this deal like I had written earlier so I told my agent that the deal was dead & proceeded to sulk for Fri & Sat of last wk thinking all was lost.

But had remembered that 1 of my buyers had said to tell him if I w/going to cancel that he w/go to the listing agent directly w/an offer of 375k & give the seller 40k upfront non refundable so she wld agree to the condition of not closing till she moves out w/is looking like this Tue, & that he w/give me 7k for it. He gave it to me in writing as well.

So I cancelled & my buyer made his offer & the seller accepted it! Hallejujah!

Of course the listing agent was very motivated since he w/double end the commission & make 40k instead of 20k)

This w/be deal #8! the deal was saved thank God!

Lessons learned, #1 dont' get props that are occupied or if they are at least structure them with $ upfront non refundable so they w/agree to a closing after they move out.

Lesson learned #2 don't use a buyers agent anymore! We got lucky on this one too using my buyers agent bc the seller said my agent reminded her of her son LOL! but my buyer proved what I already knew & Matt had said, make offers directly to the listing agents!.

list agents w/be more likely to take your offer over other offers that have a buyers agent bc they w/double end or get all of the commission!

I know it is wrong, they are not supposed to! they have a fiduciary duty to hve the best interests of their client at heart & present all the offers! But w/can happen I have heard is the list agent accidentally puts the other offers w/buyers agents or financed offers at the bottom of the pile & presents the seller w/your all cash offer w/no buyers agent at the top!

It is human nature! We all want/need to prosper & have more $ for our families, mortgage, vacation, operation etc whatever we need right. So no more buyers agents(my buyers agent w/offering for mo's & no deals)so no more, just going to the listing agents.

Lesson #3: The san diego market is soooo hot!! buyers want/need deals & inventory is low so that is why I am now offering all cash, quick close, 15 days, no contingencies(no inspection) higher emd, 4k-5k(the buyer is paying it anyway)or even higher if need be 20k released to the seller immediately for example( that is w/my buyers have told me to do) (this is the MLS I am talking about not off market)

that is the only way to get deals on the Mls here & in hot markets w/listings are getting offers over asking like San Fran, Phoenix, LA, OC, Orlando, NY etc., again you have to have buyers that w/pay this, don't offer like this until you have buyers that w/do this & back out of your offers bc you don't have buyers that have told you this is what they will do ok.

Also, a deal is never dead until the fat lady sings or at least humm's LOL keep at it & dont' give up

people say you cant wholesale in southern CA or North Ca SF, not true, just believe, it's exactly like Matt says you can do it anywhere! I'ts all mindset, You have to adapt your strategies is all sometimes.

Find out w/your buyers are doing to get deals, ask them how you should you offer to help them get deals & they w/tell you, they cannot be everywhere, they want you to help them lock up deals, they don't have the time sometimes or don't want to do it they would rather have someone else get deals & pay them or they miss the deal on the MLS or you outbid them!

It has happened to me already on this deal & the previous deal here in Chula Vista, so get to know your buyers, listen to the teaching here & in Dean's book 30 days to cash and/or your training if you signed up for the Success acadamy.

remember w/Michael Jordan said, "I have failed over & over & over, & that is why I am successful!"