Are You Ruining Your Credibility?

Question

I have been analyzing deals and believe that I have finally found one. Nothing is set in stone and many things can go wrong. So what happens when you make an offer, it gets accepted, your under contract and BOOM something happens on your side where you have to back out for whatever reason? Ie. Funding, further research show it's not the deal you thought it was ect....

Does this happen all the time? Do all parties involved automatically get a bad taste in their mouth? I'd love some insight into this as I plan on being in this business for a long time and just like in any business reputation goes a long way. Being young and starting out should this be a concern at all or am I over thinking this?

About to make my first offer and is just a thought, and insight will be greatly appreciated.

John Thedford · Answer

The key to credibility is to keep your word and don't make promises you don't intend to keep. If you have a reasonable inspection period and the property fails, notify seller immediately and cancel the contract. No harm there. If you need financing, always have a financing contingency where you can cancel if you cannot obtain it. The worst operators that post on BP are the "wholesalers" making statements about having no intention of closing, asking how to get out of contracts, etc. Deals fall apart all the time. Legitimate inspection times, legitimate financing issues, etc don't hurt anyone's credibility. You can buy properties at a discount without misleading anyone too! I told a seller I would list his property for 155K or purchase for 120K. He chose the latter and today we are friends and doing other deals together. I would say that honesty will take you very far in any business and lack of honesty will kill the same business. I believe honesty is THE KEY.

Dustin D. · Answer

Chris Mason

Very good point never thought about it like that.

Dustin D. · Answer

@Rajesh Patel Makes sense as we are in this business to help others and make smart business decisions. From reading and doing research things change all the time in this business.

Thanks.

Chris Mason · Answer

@Dustin Dudinski,

Deals fall through all the time because the property isn't remotely close to what the listing agent wrote on the MLS.

Recent example being that we discovered, about a week in, that the seller (and/or their agent) was intentionally not granting access to the crawlspace beneath the house. Some dumbass still bought that property, but my person sure as hell didn't.

Ya know whose credibility is ruined there? The listing agent. John Q Consumer isn't going to remember that listing agent's name, but I've seen her listings come up a few times since then, and advised the buyer's agent and buyer accordingly.

Are You Ruining Your Credibility?

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