Re: I made THEM an offer… - Posted by JohnBoy
Posted by JohnBoy on April 24, 2002 at 12:28:07:
Reminds me of the time I seen an ad in the paper advertising for people to buy real estate using THEIR money to fund the deals. You find the deals, they will fund the money and split the profits! Sounded fair enough except for the catch! They wanted $900 to sign up with them!
The excuse was that the $900 was to show you were serious about following through. But your $900 would be refunded off the top on any profits from your first deal. Some sales pitch!
So I said I didn’t have $900. But that I did already have a certain property lined up that I could buy for 50% of its value! So since I already have a property lined up that would give us a $75k profit minus any holding costs, that they could venture with me on this property and take their $900 from that after we close on the deal! Needless to say that wasn’t how they do things! They still required the $900 to be paid first! So it was more important for them to get your $900 over considering a deal that would have a profit of $75k to be made!
So what does that tell you about the company??? It told me that they NEVER had any intentions of ever funding any deals no matter what kind of profit was involved and that the only thing they were after was your $900!!!
If they were for real then anyone in their right mind would at least want to inquire more about the property if you were talking $75k profit involved! No one in their right mind, if they were for real, would just blow that kind of money off over getting $900 up front!
I can understand their reasoning to an extent to justify charging $900 to avoid messing around with someone that will never perform. But by God, when you have a person on the other end of the phone that is telling you they have a $150k property they can buy right now for $75k then I’m sure as heck am going to at least ask more questions about that property! I sure as heck wouldn’t just blow it off and ignore it by concerning myself with just being able to squeeze $900 out someone! Would YOU??? Would anyone else???
I don’t remember the company other than they were based out of Florida. This was about 10 years ago. But this company sounded like the same thing being offered by Nationwide Real Estate Discounters.
Anyone that turns their head walking away from a potential $75k profit just tells me they will be turning their heads on any deal you were to bring them after paying them their fee they want!