The point…revisited - Posted by ScottE
Posted by ScottE on August 20, 2002 at 17:43:03:
If you knew enough to know you had a ‘deal’ and tied it up, you should follow through. Perhaps not on this deal, but maybe on one where there is a TON of equity and you get a contract only to have the seller make another deal with someone else. Now you have to fight to GET something…much more difficult. If you had the deed, then they would have to take it FROM you…a much better position.
Certainly fighting things out in court(e.g. in specific performance cases) should be a last resort. It is usually costly and even when you win, you frequently lose something (time, etc.).
The point is CONTROL. I have had a few deals where they weren’t great deals for me as an investor (bad location for me, not enough equity), but I could flip them (even ‘subject to’ deals) and make a few dollars. I could do this because I had those tools in my bag. I knew it would be a good deal for someone, if not me. I closed the deal and controlled it to the point of making a modest sum for coordinating things. You want to keep yourself in the loop. You will learn many things and it is a great bargaining position…provided you KNOW it’s a ‘deal’.
You must be prepared to strike fast on the real deals. If you play slow, too lax or too nice, you are destined to take it on the chin more often. And believe me, you can count that chin music all the way to the bottom line.