Another Investor Brings Me a Deal He Can't Close
Not a whole lot to this deal. Another investor handed off a lead he couldn't close. He fell for the "Least I will take" trap sellers sometimes use. I have a saying, "We all want a brand new Ferrari in the garage, but when we open the door, we drive whatever is sitting in there." In other words, what we want and what we'll take isn't always the same thing.
The investor working this lead just couldn't get the numbers to work for him. The sellers had convinced him the least they would take is $280K. Here is his email;
The property is free and clear. Seller is asking for 280k. They want to use those funds to put down on another property by the beach. The house is beat-up. I'm guessing it needs 80k in rehab. They said if they can't sell it for 280k by Monday, then they would get a HELOC for 280k the next day. They are very motivated to sell. I just can't find a solution to their problem so I thought to contact you. The owner received a quitclaim deed from her ex-husband. She and her current fiancee are looking to buy a house together where she needs to relocate for work starting the beginning of January.
Out of that entire paragraph, the only important information is that the house is free & clear. All the rest is just useless party talk. After speaking with the sellers, I wasn't falling for their "least we will take" objection. I called a few buyers to see what kind of spread I could get on the deal. I found one that was willing to go to $283K. That was enough for me to get back to work and lock it up.
I spoke to the sellers again and started at $270K. That's close enough to $280K and I figured if they got most of what they needed, they would rather do that than get a loan and be stuck with a house they really didn't want. They didn't bite, but I could tell we were close. After a bit more back and forth with them, we landed on $275K. I wrote it up, got it signed and opened escrow. The deal closed and I paid $1,000 referral fee to the bird dog and pocketed a cool $7,000 on a deal I paid nothing in marketing fees to find. And some people ask me why I go out and speak to clubs? Because the guy who referred this deal to me was at the last club I spoke at. In essence, I got paid $7,000 to speak that night.
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