When a Buyer Performs Really Well, It's Good to Give Him a Gift - an Equity Gift
I'm down to two very productive buyers; one seems to be able to take down as many deals as I can pitch him even though he's buying from several others as well. We just closed one last Friday and opened another escrow on Tuesday. The other buyer likes the more expensive homes and I've been happily feeding his appetite. In the last 2 weeks, I wholesaled him two houses both worth over $400K for $325K each. I also arranged the hard money loans for him through my private lender and my lender gave me a 1 point bonus on each deal for introducing him to a new borrower. Those deals worked out quite well for me and I'm sure they'll be very profitable for my buyer as well.
I wasn't planning on selling him both houses. I have another investor that is handling a listing referral for me and I want to send a deal her way, especially after she told me how much cash she has on hand. As a wholesaler, it's my job to spend that cash! After we opened escrow on the first house, he texted me a few times and was persistent about asking if I had any more deals. I like that about a person. There's never anything wrong with following up and it is always free to ask. Plus, it made me motivated to sell him another house! I sent him over the second one just a week after we opened escrow on the first. He took the second one down happily. He made it so easy for me to move both of these deals, I wanted to reward him with something really juicy. I told him I'd do my best to get him a deal with a lot of meat on the bone.
On Wednesday I got a lead on a nice house. ARV is about $315K. I did my research and sent an offer to the seller. On Thursday the seller called and said we could open escrow. I immediately thought of my buyer and my promise to send him something with a nice equity spread. I called him up and told him to make me an offer. I asked him to name the price that worked for him and I told him what I paid and no matter his offer, I'd take it. He said he'd look at it in the morning and call me.
He gave me a call this afternoon and said he likes the house. Then he asked me if I'd take $5K over my negotiated price with the seller. I happily told him "Sold." I'm confident he'll be busy for the next 2 months with these three houses, but when the dust settles, he'll have a much fatter bank account. I'm looking forward to finding him some more deals when he's ready to buy again.