Real Deals: The Co-Wholesale Catastrophe
Previously, in Real Deals: The Cowboy Bandit that Almost stole $43,000, we discussed how I negotiated a killer deal by making a solid connection with the seller and building massive rapport – even to the point that her long-time neighbor (the Cowboy Next Door) tried to swoop in and sabotage the whole thing. But, I politely turned the screws a little and still came out with a solid deal under contract.
Boldly Go Where no Man has Gone Before: Yee-ha!
So, my current hurdles at the moment are:
- Figuring out what the heck the value on this thing really is.
- Finding a cash buyer for a quick and tidy deal.
That’s where our story picks back up, and where things suddenly start turning unexpectedly south. But, although things get a little weird, there is still a lot to learn from this experience:
- Getting it sold: How I marketed the deal to my local cash buyers.
- Co-wholesaling: How I lined up a seemingly solid buyer through a joint-venture arrangement with an investor buddy of mine.
- Mystery ARV: How I was able to get a realistic (and surprisingly high) value on a property with seemingly no comparables.
- Sweet: How $k-10k profit turned into $15k-$20k profit very quickly.
- My big goof: How an awesome deal can quickly turn on you with a single error in judgment.
- Assignee from Hell: What to do when buyers aren’t quite what they seem.
- Big, fat, juicy MISTAKE: The one I made in trusting my buyer at face value (and how it bit me hard in the rear, almost costing me the deal).
- Decision time: Is “non-refundable” earnest money really non-refundable?
- The call: The big goof I made that caused my seller to tear me a new one (and why I deserved it).
- The save: How I turned things around before the deal spiraled completely out of control.
Beware, You’re Entering the Twilight Zone
We’re about to enter the 5th dimension beyond that which is known to man. It is a dimension as vast as space and timeless as infinity. It is the middle ground between light and shadow, between science and superstition, and it lies between the pit of man’s fears and the summit of his knowledge. This is the dimension of imagination. It is an area we call the Twilight Zone:
Click here to check out the audio recording.
Takeaways Learned the Hard Way
- Sometimes it’s better to cut your losses and move on, rather than digging in your heels and standing your ground. Trust, but verify…don’t skip the step of prescreening your new cash buyers and expecting them to have clear, non-refundable skin in the game.
- Set very clear expectations with anyone you ever give access to a property before you actually own it.
- Business is business… set the rules for how you’re playing the game on your terms and stick to it, even when your inner nice-guy wants you to bend your own rules.
Sometimes the best lessons are learned the hard way, especially in the real estate world.
Keep an eye out for the conclusion, Real Deals: When Buyers and Sellers Conspire Against You (And You Still Net $43K).
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