A Desperate Seller Not Willing To Budge Gets His Wish
A buddy of mine kept getting this seller who claims to own a lot of houses and this seller insisted if he bought this one crappy 860 Sq/Ft house in a bad neighborhood, he'd sell him a few more from his pile. The old Carrot on the Stick routine. I never fall for it, but instead, just make my typical offer. If he takes it and is happy, great we can do more business. If not, oh well. There are plenty of other sellers waiting. Well, my buddy is just getting his feet wet in this business and of course, he took it hook, line & sinker. No matter how many times I told him what to offer, he kept telling me the seller wanted more.
In the meantime, we closed deal after deal together, but this seller kept coming back up. Man, this property was starting to be a drag. Each time, the seller moved his price just slightly down. Not nearly enough to make it work in my opinion, but I'm quite opinionated (according to my mom) and kept telling my buddy he needs to do a better job of negotiating the deal into closable territory.
After months and months of this nonsense, the seller dropped his price to $130K, about $10K more than I thought I could even sell it at. My buddy comes back at me again with this new lower price. He's excited and insists a deal can be made. More than anything, I just got so tired of this skinny non-deal interfering with productivity that I set out to find a buyer to get it out of my life. I sent out a few texts to some landlord buyers and wouldn't you know it, I found some interest!
A few went and looked, and one stepped up. He said he liked the deal and wanted the house. Was I shocked? Yes. I guess the old saying is true though, there's someone out there for everyone. Unbelievably, the buyer actually closed the deal and we got a small, but fair check out of it.
Next time a skinny deal comes across your desk, give it a shot and pass it around. Offer 50% of the wholesale fee to any other wholesaler who brings you a buyer, but don't, under any circumstances, let those wholesalers mark it up adding $5K on top again and again creating the dreaded daisy-chain overpriced non-deal. I detest those people.
I'm not always excited with some of the checks that land on my desk, but I've never gotten one I didn't cash. Leave your comments below.