You Win Some…You Lose Some (long) - Posted by Gerald-DC
Posted by Gerald-DC on February 18, 2002 at 14:04:00:
and then sometimes it rains.
First off, I am not some sage real estate guru, but I am out there working hard in real estate. Just wanted to share some recent experiences.
In January, I had almost written off two deals, because the sellers were dragging their feet and just would not pull the trigger to do the deals. One deal was for a sub2 and the other was an estate sale that is perfect for a rehab. (Passed Steve Cook’s formula with flying colors). I had sent the rehab seller a contract via express mail and had left the paperwork for the sub2 sellers to review.
In early Feb. the Sub2 people finally called and said they were ready to sign the papers. The rehab seller (who lived out of state) called with some lame excuse and said he still needed to review the contract.
At this point I am thinking that the sub2 deal is looking good b/c the sellers had the paperwork to review for almost two weeks and they called me saying that they were ready to do it. I am thinking that my rehab seller is out shopping my contract and is not going to follow through. I mean we had agreed on the terms and I sent him a return express mail envelope three weeks earlier.
So what happened? The sub2 couple had me meet them at their house at 8:00 pm on a Saturday. I called a notary to meet us there ($85.00) and expected to be in and out in an hour or so. Imagine my surprise when the couple started asking me the same questions that they asked me when I first met with them and questions every aspect of the various sub2 documents as I presented them for signature.
Rather than go into a lenghty narration, let’s just say that the papers were not signed and that another investor was called and is now advertising the property as a lease option. Talk about a kick in the gonads.
The rehab seller called me out of the blue to say that he was in town and ready to sign the contract. Sure enough, when I met him at the property,he had the contract in hand that his attorney had reviewed.
This rehab should net at least 25k on the very conservative side and may net as high as 45K.
What I learned from all of this is to not give up on sellers, stay in touch with them on a weekly basis while they are deciding. Also, when dealing with a divorcing couple, try to speak to both people seperately to make sure there is a meeting of the mind.
Also, don’t count your chickens until they hatch. I just knew that the sub2 deal was a done deal. It never dawned on me that the sellers would not review the paperwork that they had for two weeks (they admitted without apology that they had not touched the paper work)and then call me to say that they were ready to sign and then go into an insane game of 100 questions and demanding to have their lawyer review them and then call another investor and sign up with him.
On the other hand, I had mentally written off the rehab seller b/c he had stopped returning my calls and made lame excuses when I did reach him.
As a side note, I was having lunch with a brand new newbie when the sub2 seller called to tell me they sign with another investor, I was a little miffed.
Minutes later, a seller of a property who I have sent several letters to called me to say that they will allow me so see the property and make them an offer. This pumped me up b/c this property is a big house in a hot area and it is not on the market. If a deal is made, there is a nice spread involved.
Well, best regards and happy investing to all.