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Posted almost 10 years ago

Cash Flow Crisis Averted?!?!?!?

So I wrote about my 12 townhomes that I have under contract that I am trying to wholesale and its been a rough journey but I know the gold at the end of the rainbow is getting closer! I had been advertising my properties all over the web through any media outlet I could think of. I had alot of people ask for more details bad had received no offers. I don't think there is anything more nerve wrecking and frustrating than waiting for a deal to close and not even have one offer. This deal could be the biggest wholesale for my new company and my partner and I are very eager to close it just like any other contract we get. So last week we got alot of activity for these properties. I filled out some online homebuyer sheet for somone else's wholesaling efforts I'm sure. About an hour later I had a phone call asking for a few more details and if they could share it with there network of investors and I said sure. That same day I had several emails and phone calls about the townhomes and I aligned myself with another investor in the Houston area who claims to have a huge buyers list and can get these properties sold in no time. It all sounded good to me because I felt like this deal was going no where. We negotiated to split the profits if he brought the buyer in, but also to take much less money if I brought the buyer in. The most important thing for myself, was to get this property sold as fast as possible. That same weekend a California buyer contacted me about the townhomes that she read about on "Bigger Pockets." I gave her all the info and she contacted me again on Monday saying that she would have an offer for me on Tuesday or no offer at all. I said "great" and now I am waiting for her to contact me. Keeping fingers crossed. She seemed a little on the fence so I encouraged her to just make an offer and we would see what we could come up with. I have left a large enough spread in this deal so that I can take a hit on my asking price and still come out fine. Also, this seller is highly motivated and I'm pretty sure I can convince him to come down so that we can close immediately. Another problem I had on this deal is that Texas does not allow flips to occur in the state anymore. You must use transactional funding on all wholesale deals or make an agreement with the seller for a certain fee. I usually wholesale in Phoenix and have not run into this problem before. It took me 2 weeks to find a title company that would do the things I needed to happen to save extra money on this deal and do a simultaneous close. If anyone is doing wholesale deals in Houston and wants to do simultaneous closings use Momentum Title. Very easy to work with and saved me from having a heart attack trying to get earnest money deposited from a third party to do a simultaneous close. I have learned so much about wholesaling in a market that isn't in your own backyard just off this one deal. The experience alone is worth its weight in gold, but getting paid will be sweet too!! Here's to getting to the end of the road and seeing further. Obstacles are nothing but roadblocks on the journey to achieving our goals!


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