Welcome back, It was not long into my real estate investing career that I discovered the power of hard-work when it comes to closing real estate deals. While the term hard work can be very vague I am referring to the ambition and go-getter quality of doing what needs to get done to make a deal close.
Some of the most lucrative and experience filled real estate deals have come deals that were closed when others had tried to buy the home before and failed. I was not the first investor on the scene, but I was the first investor to finish the deal.
Below are 3 stories that discuss the advantages and benefits of going the extra mile for your next buyers and sellers.
1. James The Seller: This seller, James, called from a piece of mail we had sent him. James was selling a 4 bedroom home in a very high demand area. When I showed up to James's home I discovered my letter was one of over 40 sitting on James's kitchen table. James expressed that other investors had tried to help, but unsuccessfully all had failed due to his family causing trouble, as he put it.
I decided to accept the challenge and we signed a contract at a very Win-Win price for an all-cash sale. My exit strategy was to wholesale the home to a rehab expert, this home needed a total rehab, or I would partner with a local builder to demo and build new to then split profits when resold.
Over the next 3 months, and 2-time extensions later the deal worked out between our attorney working hand in hand with the seller's siblings' attorney. After 3 months and an attorney bill over $3,000, the deal was closed. After closing, James confided in me saying that if it wasn't for the few times we went out and spent some time together he would have been much more scared and likely not have extended the sales contract. However, James saw all the work I was putting in and continued to trust in my abilities.
My exit strategy for this home was a quick wholesale with an assignment fee of over $20,000. Note: This is a large assignment fee due to the deal being very favorable to me and to reflect the effort involved.
2. Seller Mary Lou: Over the course of my career I can count 6 times when being patient and calm helped me close a real estate investment. Not all sellers want or need a super-fast sale. For these sellers, it is not the time but an ease of selling that is appealing with regards to working with a local investor.
Mary Lou was a hard working registered nurse until 2 years ago when she retired. Three years ago however was the first time Mary Lou reached out to me concerning her property. At this time the market in my area was increasing and in high demand. Mary Lou could sell to anyone, then why was she wanting to sell to me?
In this appreciating market I was willing to pay her price to get her home under contract. She knew I could close quickly and I had expressed I would handle the closing procedure with a local closing attorney.
The seller wasn't greedy, wasn't pushy, and would have been scared away if I had come off pushy or greedy in-turn.
The home was purchased and like the previous example was wholesaled. I'm not a wholesaler at all typically however, these 2 stories revolved around the exit strategy of wholesaling real estate.
3. Seller Raymond: Sometimes sellers need to sell quickly and they are in a pinch. Raymond called me out of the blue with a mobile home to sell inside a local mobile home park. The home was in decent condition for the age and I was happy to make some offers to help purchase the property.
After an agreed upon price was reached the seller told me that the property was not in his name but that he did pay the previous seller (the still current owner) for the home when he moved in to the property. In addition, Raymond had been paying for taxes and lot rent for the past 2 years, however Raymond was still technically not the owner and therefore could not technically resell the home which he did not own.
Raymond admitted that if the home was in his name he would have sold the property months ago. When I asked Raymond, “Why did you not transfer the home when you first bought it?” Raymond's reply was, “I didn't have the money at the time.”
With the help of a skip tracer to help track down the actual owner, paperwork help from the state, a clear plan, a few weeks time, and further negotiations between the seller and I was able to purchase the home for a 25% discount from the previously agreed upon price. The seller was very happy and so was I.
In conclusion, there is simply not one reason to go the extra mile. I may get some criticism for this but going the extra mile is almost always worth the time and effort if the deal is solid and you have a clear plan to accomplish your goals.