OfflineHi DG family, we're Jim and Nancy, a married REI Team! It's been 6 months of due diligence. We spend a minimum of 3 hours/per day....after working full time jobs and up to 12 hour days on the weekends. We are so excited and hopeful for a great future. We built a substantial buyers list and we keep in touch with them weekly. We have a lawyer ready to go, a mortgage broker and a realtor/agency owner/investor working with us, but we haven't been able to get a property under contract. We have a few systems in place: We utilized a complementary default Notice website, and are looking for properties that have good equity. We sent out over a 100 letters to those homeowners, and followed Dean's script to drive them to our free DG website (BTW thanks Dean!). We also post flyers anywhere we're allowed, using Craigslist, making cold calls to fsbos, and we're also telling everybody about what we're doing. We have no naysayers in our life!! Much support from our family and friends. And we are very grateful for that. But we're concerned and feeling a little discouraged that we have not been getting any call backs or emails. We read and re-read all the books we purchased, listened to all the monthly live calls and all 77 of Dean's Sunday blogs. Also, we're on DG.com everyday. The DG family has been keeping us positive and hopeful that it will happen for us. If you're reading this and have any advice for us, please, let us know...we look up to all of you that have been where we are now.
We just want to push forward so we can help others.
Thank you and god bless you.
Keeping the faith,
Jim and Nancy - Studio4
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"Your future contains far greater joy than all the sorrows of yesterday."
I also answered your question on your other post:
http://www.deangraziosi.com/real-estate-forums/contracts-and-offers/7411...
Always Looking to Acquire Houses | Always Looking to Amaze Investors
Get the buyer to pay them through an invoice? People do that all the time, for different services. Then, they could rip up their origional contract (after they got a fee of corse), and make a new one between the new buyer and the seller and they can buy the house. They wouldn't have to record the invoice ~ or they could just make a totally separate paper between them and the buyer, like a "consult fee" ? Neither papers would need to be recorded anywhere, thus taking away the problem and making everyone happy again.
There was a wise investor who explained it to me one time, and I think it went somthing like the above ideas? And, if maybe the buyer doesn't have that much to pay for a fee, they can negotiate it so they still get a good fee? But then again, they could always try transacion funding. It would eat into their profits, but the deal would still close and everybody would be happy that way.
Hi DG Family! Thank you so much to all of you for your replies, ideas and advice. Sorry it took us a while to reply. We’ve been spending all our free time trying to get this deal to close…
We decided that in order to make the deal happen, we would need to work with the buyers directly, outside of closing to get our profit/fee.
They really wanted the house, and had already moved out of their apartment, in with their in-laws and paid for the home inspection (all on the advice of their buyer’s agent), before the new/revised P&S was signed. We negotiated an extension with the seller’s attorney, until March 31st and they agreed to enter into a new P&S with our end buyer at our original lock-in price. We had an invoice for our fee in place to get paid by the end buyer at or after closing. To help them, we even agreed to let them pay us in installments as they didn’t have the extra money to pay our fee since they were planning on financing the higher amount.
After all this, the end buyers stopped communicating with us. They ignored our emails, voicemail messages and text messages that we sent to them and their RE Agent. As of now, the house is back on the MLS, for $23,400 more than the end buyer could have purchased it through us.
Unfortunately, this was not a win-win-win for anyone involved, except for the home inspector. The sellers didn’t sell the house, the buyers didn’t get the house they wanted, the listing agent and buyer’s agent didn’t make a commission, the lawyers didn’t get the closing and we didn’t get our fee.
We learned that we can’t work with buyers who need financing if not doing transactional funding. We’ll stick to the traditional assignment deals and only work with our cash buyers in the future or do lease options. We’re not giving up. We followed the IEE strategy exactly as outlined in all of Dean’s books. It seems like the attorneys and agents in our area really have a problem with wholesalers. We spoke to a few others that wholesale in our area and they strictly work with cash buyers because of this.
We are very grateful for all the DG members who replied. We’re glad this wasn’t our first deal. We’re feeling a little dejected by this whole deal, but would never give up. We have 2 properties under contract now and we’re looking forward to updating all of you with good news!
Thanks again,
Jim and Nancy
Studio 4