OMG I totally think I messed Up!

Wholesaling
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OMG I totally think I messed Up!

Fe Kelly
Wholesaler · Goldsboro, NC · Member since 2016 · 49 posts · 10 votes

I believe I miscalculated my ARV and contracted a house for too much. I may have to get out of it. I have a clause in the deal so that's easy, but I'm soooo embarrassed and hate to tell this old lady I can't buy her house. This was my first contract. Smh. I wish I could start this one over.

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Aaron Mazzrillo
Investor · Riverside, CA · Member since 2011 · 2k+ posts · 3k+ votes
10y

I've closed on every offer I've made that was accepted by a seller. Each person has to have their own set of business ethics and you lay the ground work for what yours will be. Even when I didn't know what I was doing, I still represented myself as the professional in the transaction and always kept my word. In this business, my philosophy is that my net word is more important than my net worth. Yes, I've paid too much for houses... more than once. But I swallowed that sometimes bitter pill and used it to learn how to do better next time. That is why my contracts have no escape clauses and also why I get second shot at a deal, last look at the highest offer and have purchased more than one property as much as $10K less than the next guy. 

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    @Aaron Mazzrillo  Aaron Totally agree.. I have been on BP now for two years and its astounding to me the amount of folks that will pay money to market when they have not a clue what to do with the leads or any type of sales experience etc... seems like the cart before the horse.

    But I am a salesmen so maybe I am blind to it all.. !!!

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  • Aaron Mazzrillo
    Investor · Riverside, CA · Member since 2011 · 2k+ posts · 3k+ votes
    10y

    Yeah, one of my favorite post headlines, and it shows up about once a month, is; 

    My phone is ringing, now what do I do?

    It is so tempting to respond, "Hide in the closet until it stops!" LOL

    2Reply
  • Elliot Smith
    Investor · Vancouver, WA · Member since 2014 · 270 posts · 111 votes
    10y
    Originally posted by @Aaron Mazzrillo:

    Yeah, one of my favorite post headlines, and it shows up about once a month, is; 

    My phone is ringing, now what do I do?

    It is so tempting to respond, "Hide in the closet until it stops!" LOL

     This literally made me LOL!

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  • Ralph R.
    Investor · Bethel, AK · Member since 2013 · 1k+ posts · 852 votes
    10y
    Jay Hinrichs off topic. I gotta agree with Ryan Spinola you are SPOT on with your posts here and in other threads. I admire both your honesty and common sense. Thanks for all your input on BP. RR
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  • Ralph R.
    Investor · Bethel, AK · Member since 2013 · 1k+ posts · 852 votes
    10y

    @Jay Hinrichs @Ryan Spinola            see above post

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  • Ryan Spinola
    Edison, NJ · Member since 2016 · 68 posts · 28 votes
    10y

    @Ralph R. TBH all my knowledge comes from the great Sean Terry. I just take everything i learn from him and pass it on but ty

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  • Ian WalshBusiness Member
    Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
    10y

    Why not go back to her and say you simply miscalculated when doing your due diligence.  Let her know what happened and that you would still like to buy the house, but if you buy it for the original number you will lose money.  We are investors and people know that.  They expect there to be a profit for our work.  Being up front in these situations can frequently work out for everyone.

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  • James Danchus
    Saint Peters, MO · Member since 2016 · 193 posts · 37 votes
    10y

    @Fe Kelly 1)Have you thought about keeping the house and flipping it yourself?

    2) Do you have a mentor? If so what do they think? (I'm not convinced your valuation is off)

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  • Fe Kelly
    OP
    Wholesaler · Goldsboro, NC · Member since 2016 · 49 posts · 10 votes
    10y

    @James Danchus I thought about flipping it but I don't have the funds to do it. That's why I'm wholesaling. I thought about a loan so I'm researching them now. I just don't believe I have enough cash buyers in my area. That's my fault. I thought I had more than I did, but now I see that several of them are not serious. They've never done a deal and were some wholesalers pretending to be cash investors. 

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  • Randy E.
    Rental Property Investor · Durham, NC · Member since 2014 · 1k+ posts · 1k+ votes
    10y

    What city is it in?

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  • Randy E.
    Rental Property Investor · Durham, NC · Member since 2014 · 1k+ posts · 1k+ votes
    10y
    Originally posted by @Fe Kelly:

    @James Danchus I thought about flipping it but I don't have the funds to do it. That's why I'm wholesaling. I thought about a loan so I'm researching them now. I just don't believe I have enough cash buyers in my area. That's my fault. I thought I had more than I did, but now I see that several of them are not serious. They've never done a deal and were some wholesalers pretending to be cash investors. 

     LOL.  You have to be careful about some wholesalers.  There are some scum in the pond.

    I'd be honest with the owner.  Right now, you have her property tied up at a price you're not sure you can move it.  She wants to sale it as soon as possible.

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  • Fe Kelly
    OP
    Wholesaler · Goldsboro, NC · Member since 2016 · 49 posts · 10 votes
    10y

    I'm going to give it through the weekend while I'm talking to other buyers and meet with her by the beginning of the week. @Randy E. there's definitely some real scum out there! 

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