The most common regret I hear from seasoned investors is, "I wish I kept more houses."
Well, it wasn't long after I closed February's D.O.T.M. with my new buyer that I got another property under contract. I was going to keep the house, but then for no other reason than I like checks, I sent it over to this buyer as well. He performed so well on my MoVal Sucktion 8 dump, I wanted to see what I might get for this new house. As I figured, he made me a sweet offer I couldn't refuse and I signed the assignment agreement escrow drew up.
Well, it wasn't too much longer after opening escrow on the previously mentioned property that I got yet another property under contract. This property was one that I really wanted to keep. Unfortunately, life happens and he texted me at just the right moment. I've always said timing is everything in this business! I was dealing with some personal issues when he sent me the following text in regard to the second house I was wholesaling him;
The occupants don't want to leave. Any room on the price since I will probably have to do an eviction?
Dang it. I hate having my wholesale fees shaved, but I also like checks so I responded;
Contested evictions run about $1,000. That work?
Yeah, I've done a few evictions so I knew my response was in the ballpark, but there are holding costs and such to think about. He replied;
Man, this buyer was driving a hard bargain. As I mentioned previously, I was dealing with something that was heavy on my mind so instead of going back and forth, I replied;
You can beat me up over $1,500 or I can sell you the Villa Vista house I just got the accepted contract back on. That house is vacant.
In the words of Matt Damon, "How you like them apples?!" His response, as you can probably expect;
Alright, $1,000 works. Not going to beat you up. We are on board for both. Vacant is great. Thanks Aaron.
The next day I recovered from my mental slump and was now suffering from some serious seller's regret. I just let a house I would have loved to add to my portfolio get away from me. I knew it wasn't coming back and there was no way I'd ever be able to drive down that street again, but I gave it my best shot;
I won't be upset if you don't close on Villa Vista. I'm a man of my word so its 100% yours (as long as the seller returns docs of course), but if, just in case, you change your mind, or have any doubts, even the tiniest bit, I won't hold it against you.
Fingers crossed, I anxiously waited his response. And then it came;
What's the time frame on escrow?
So much for that street. Might as well put up a huge, "Aaron not welcome here" sign cuz I'm not driving down there ever again. However, the $67,500 in wholesale fees I made on two deals eased my pain a bit.
I brought this situation up with my mentor. He said, "Aaron, some houses have jobs. That house did its job." I do have some debt I want to eliminate which is on my goal list for this year, so yeah, that house did do its job.
I've since wholesaled him another house that puts me more than a third of the way through that $350K. Are you a buy/sell investor or buy/hold? I love buying and selling because I love checks just as much as anyone, but I definitely see that my portfolio of rentals is where the real wealth comes from. Please leave any comments below, share this post with others and head over to my blog for more insights on investing in real estate.