{"id":111050,"date":"2019-05-22T11:00:08","date_gmt":"2019-05-22T17:00:08","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=111050"},"modified":"2024-01-15T13:57:43","modified_gmt":"2024-01-15T20:57:43","slug":"save-deal-gone-wrong","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/save-deal-gone-wrong","title":{"rendered":"Don’t Panic If Your Buyer Defaults! How to Save a Deal Gone Sour"},"content":{"rendered":"

Purchasing property the right way can get you past the hiccups in a deal.<\/p>\n

There\u2019s no question that you will come across complications in your property deals that will make you want to throw your hands up in despair. But don\u2019t!<\/p>\n

Sometimes the difficulties in a deal can become a source of added benefit. Challenging purchases might not go on to become your most profitable story, but there\u2019s something to be said about salvaging a deal gone bad.<\/p>\n

With my company, we try to find an upside in these situations\u2014for instance, by creating a fourth payday from it.<\/p>\n

What to Do When a Deal Doesn’t Work Out\u2014Twice<\/h2>\n

One example I recall was when a house we bought had two different buyers after one defaulted.<\/p>\n

In 2015, we put an expired listing under contract for $263,000 using a sandwich lease<\/a>. The purchase price was what she owed on it, and we agreed to terms with nine years left so as to give time for the market to potentially appreciate and for principal to come down.<\/p>\n

A “subject to” deal is preferable when the seller owes on the property, but in this case, they did not want to give up the title (either for the tax benefits<\/a> or out of general discomfort).<\/p>\n

Related: <\/strong><\/em>How I Profited on a 2-BR Home by Switching from Sandwich Lease to Subject To<\/a><\/em><\/p>\n

\"sell-property\"<\/p>\n

We sold this property to a buyer for $329K, but they eventually defaulted. The combined paydays were:<\/p>\n