OfflineHi guys!
I realize it's June already, but as we all are I've been busy, so I wanted to take just a few moments to catch up.
Since I haven't started a journal I thought I would post all my deals since my first, one by one. I started PMI June 2011 (maybe it was July, anyway.... ). My 15 offers were placed Oct. 4, 2011. By Oct. 26 I had placed 53 offers and got my first accepted. Due to excessive damage, I went back to the bank and over the course of the next 2 months that property ended up being donated to the city. I never did that deal. BUT, it was accepted!
So, my first deal was in Dec. 2011.
"Wilshire"
An REO, listed at $139,000
I locked it up for $110,000
Since it was a REO, I could not assign it, but I got the bank to allow a substitute buyer.
With a side agreement, I got my wholesale fee of $4,400 and received my check on Dec 16th, I believe.
My buyer must have had difficulties with Hard Money or something because I came to find out he did not close.
So, I tried for the next 3 months to get the deal again and sell it. At the last moment my Realtor and I missed a submittal deadline and we missed getting in.
In an effort to make up to my buyer, I let him know I would give him a nice discount on the next deal we did together. After all, I used the fee to buy groceries!
We also made sure we showed the listing agent and the asset manager that I was in good faith all along by wanting to do the deal ourselves.
That was Deal #1. Two months after I placed my first offer.
Thank you for reading!
Never, Never, Never Quit, N3Q
"Nothing happens until you place an offer."
"Skip Deal #1, go straight to Deal #2; it's so much easier."
"There is nothing so useless as doing efficiently that which should not be done at all." — Peter F. Drucker... so, "Don't sweat the small stuff." -R.Carlson. "The greatest mistake you can make in life is to be continually fearing you will make one."~E.Hubbard, The Note Book, 1927...so, Do it for the right reason and "Do it with a headache!" - Dean Graziosi, Weekly Wisdom #176
Just realized I started @ Deal #7. Got it figured out now.
Thanks for posting these.
Karen
"You're never too old to be what you were meant to be!"
www.deangraziosi.com/real-estate-forums/investing-journals/59128/day-for...
"Shining Like a Star & Dancing on Sunshine"
"Shoot for the moon! Even if you fall short, you'll still land among the stars!"
congrats on the amazing work. Can you explain how you received 4,400 when the buyer never closed.I thought you receive your check?fee at closing? Can you please explain how you received it prior.
Hi Tiffany, and thank you!
By the book, we should always try to get our fee when we make the deal with our buyer.
In this case I made my side agreement (a consultation fee agreement, or an Agent/Principal Agreement) with my buyer; at that time when he agreed to purchase the property I had under contract I got my fee. Again, in this case, I was able to get the bank to substitute him in for me on the purchase agreement, with that it was completely up to him to close the deal and he did not. Because the bank did allow me to sub him in I no longer had a responsibility to close.
In a normal deal, we need to find our buyer and get their side agreement signed with us BEFORE our due diligence period is up and get our fee then. IF the buyer backs out, we should have enough time to call in a back up (always have a back-up buyer). If it all goes south, we at least have our fee to cover our lost EMD if we have to back out after the inspection period.
Make sense?
Let me know....
Never, Never, Never Quit, N3Q
"Nothing happens until you place an offer."
"Skip Deal #1, go straight to Deal #2; it's so much easier."
"There is nothing so useless as doing efficiently that which should not be done at all." — Peter F. Drucker... so, "Don't sweat the small stuff." -R.Carlson. "The greatest mistake you can make in life is to be continually fearing you will make one."~E.Hubbard, The Note Book, 1927...so, Do it for the right reason and "Do it with a headache!" - Dean Graziosi, Weekly Wisdom #176
Wow yeah I understand.so then if your getting paid before closing.What does your assignment or side agreement state. You have a contract for 100,000 and they are closing for only 100,000.Not 100,000 +your assignment fee? Also for REO offers what proof of funds source do you suggest I use if I plan on requesting a substitute buyer to pass of deals to.
Tina,
I have just started reading your success stories. I am amazed you have accomplished so much in such little time. I love your persistence you have with your offers. You just keep after the deals even though there is so much competition in your area.
I look forward to reading about your next deal.
Mike Kessler
Advisory
I always say Keep Moving Forward! Never Give Up On Your Dreams!
As Matt Larsen says "Feed the Need" - Edge 2013
Follow my daily investing journal and read about the deals I've done and am working on at:
http://www.deangraziosi.com/real-estate-forums/investing-journals/117493...