I am a newbie, and already devastated… - Posted by Frank, FL
Posted by Frank, FL on June 15, 2007 at 07:57:39:
I am losing hope and sleep over a house I haven’t been able to wholesale.
I have already wholesaled 3 properties, in the 2 months I have been working at it, but this deal is the first time I can make some really good money off of a single deal.
I came accross a brand new listing in the MLS of a property that needed work, and wasn’t too far off from a price I would pay for it. The comps (really good comps) came at $400k, and they were asking $275k. Repairs needed are $40k. My first offer was $230k, and they countered at $272k.
At this point, the agent also tells me that they have a lot of activity in the house, and that they already had an offer for $240k. Despite my BS meter going off, I know I can go up to $245k, so I arrange a meeting with the listing agents and the seller to present my offer. I go with a cash offer for $235k in my hand.
We all sat down, and once I started talking, I noticed the seller is not as hostile as I thought he would be. As I explained the details of the contract, he was nodding and smiling to everything I was saying. Then, here come these two spawns from the devil: the listing agents. For my contracts, I give $1,000 in escrow, and a 15 calendar day inspection period for my proptection. Even though the seller AGREED to all of this, the listing agents refused these terms. They wanted a $20,000 deposit, and a 2-3 day inspection period. After arguing back and forward, I said my farewells, and the listing agents asked the seller to stay for a few more minutes.
To no surprise, the seller countered the next day with $243,500, 3 day inspection period, and a $20,000 deposit. I would try to get a contract signed for 12 days inspection, then 7 days, and the AGENT refused. They did not want to “tie up the property”. It was a Friday. At this point, I decide to show the place to a few of my investors over the weekend, and BAM!! I have a buyer ready to take the property.
Long story short, next Monday I manage to secure a contract with $5,000 down, and a 4 day inspection period that gave me until Friday to assign the property to my buyer. I let all my other investors know about the place, and there is a lot of interest.
The days pass, and my buyer is trying to get rid of his partner, so he is having issues getting the hard money loan to cover the purchase and some of the repairs. Another 2 buyers are having issues securing the financing in such a short time span. It is now Friday, and I am sitting here with the potential profit in my hands, close to being lost.
I have lost sleep, efficiency at work, I am stressed, and I am losing confidence in my abilities. I tried to go back to the listing agent to get at least this weekend, and she flat out refused, saying she would not even notify the seller.
This post is not so much for advise, but because I simply need to vent my frustration.
What would you do, what would you have done, and what should I do in the future to avoid what was a week in hell for me?