Get back in control - Posted by DaveD (WI)
Posted by DaveD (WI) on July 08, 2005 at 11:48:06:
You are probably good at finding deals.
You are probably good at negotiating deals.
You are probably good at fixing houses.
You are probably good at setting your sell price.
You are probably good at finding buyers (five of them!).
You are probably good at negotiating deals with buyers.
Then you think your job is over. It’s not. Not even close.
You see, now you have to manage the lender, appraiser, inspectors, title company and maybe buyers broker or lawyer. Yep, sellers, contractors, buyers are relatively easy to handle. Getting paid is a little tougher. Do you see your mistake now?
The minute you signed off on an accepted offer and sent your buyer off to get financed, you lost control. Getting paid means staying in control. Nobody cares about you getting paid except you. You’ve got the front end of things nailed, but the game is only at half time. The second half is just starting. Better lace up your combat boots again. You have to keep moving the ball.
Direct your buyers to YOUR lenders. Lenders who understand how you do business, know how to package your buyer, and work with intelligent underwriters who understand that comparable sales are what set the market, not what YOU paid for your fixer. Sure, I frequently have to submit a laundry list of all the recent improvements. Receipts? Not on your life! Anytime you have to justify your “exorbinate” price raise up from what you paid means you are dealing with the wrong loan product.
Certain loan products are not a good fit with rehabs… seasoning, receipts, etc. It is the job of the competent few lenders whom you have a relationship with to sidestep those mine fields. Homeowners who sell a house or two in their lifetime don’t have to bother with all this extra work. It is critical for anyone who sells more than a few a year to know this part of the business inside and out. That’s you.
There are legions of lenders who, to put it charitably, aren’t any good. You can’t afford to chance it on who they are. Even if they are the buyers best friend. Not if you want to get paid on time.
Pay your buyers closing costs (or a piece of them). Now you are adding something of value and are not guilty of steering them. Get back in control.