Learning Experience - Posted by Shenesa
Posted by Shenesa on December 14, 2000 at 14:43:12:
I thought I write this up especially for us newbies not to get down on ourselves when we miss good deals. One in particular was a 2 family house that was a REO I came across on the MLS. The house was HUGE just needed some painting, a window and screen door replaced. The bank was asking 32k for this house which could have been sold for 65k and each unit rented for $650 w/ tenants paying their own heat. Well the bank wanted 1k as ernest deposit, I said NO I’ll give you $100 they took it to the board and they accepted the deposit. Then they wanted a pre-qual letter. This is where it got interesting. I had spoken with this particular broker in past about my REI plans, which he was referred to me by a RE Lawyer I met a few months back. Anyway, my agent, at that time, drew up the papers. My plans were to tie the property up for 60 days and either assign it to another investor or flip it. The broker new of my plans and declined to write up a pre-qual letter for me. I have no idea why, he just stated because he knew my plans for the property and would not do the letter. Ouch, Ouch, Ouch. I was upset and told the agent to forget it. Mind you the agent was fine with my plans.
Now everytime I pass that house I wonder “WHAT IF” the broker cooperated. But I use that situation as a stepping stone and not a stumbling block. Sometimes you can talk toooooo much to the right person and they do the wrong thing. Mind you this broker is familiar with creative REI and gave me a breifer on double closing and flipping.
So every deal that may seem to not fall through can always be a learning experience. Therefore take a licking but keep on ticking. Believe me I have plenty more learning experiences but time will not allow me to go through them all. Like my best friend said to me last week, “Shenesa, when they hand you that check at closing it will all be worth it.”