Help!!! Freaking out on my first deal!!!

can have an extension! And do and amendment signed by all parties to the contract. Best wishes!

I'm in the exact same position as you are! Did everything right, the numbers were AMAZING, contacted 20 buyers, listed in CL, here, and with 3 investor groups...everyone liked the numbers, but said it was out of their area. I have 4 days left on the contract, and not a buyer in sight. I was so excited, now I'm just embarrassed and yes, freaked out. I'm not giving up, but I feel out of options too. Any suggestions out there?

extension with the sellers. Usually as the coach says you can get at least one extension. Have all parties sign the addendum who are on the contract.

This is a classic case of forgetting to build a buyer's list and then going in to panic mode when a great property is found. BUILD a BUYER'S LIST BEFORE you go all out looking for properties. A good buyer's list is not just 5 buyers. Every day that you are involved in wholesaling properties you should have some time set apart for finding buyers.

A person can find great deals all day long, but if no buyer's exist then the results will often fail. Build your buyer's list. Building a buyer's list is like our foundation. Without it our operation will be weak.

I am by far no expert.. yet, but this is exactly where I am at now... I am trying to find buyers & properties for those buyers.. However, my plan is to find a good deal, find a buyer for that deal... Then submit an offer and try getting it.. Then sell it to the buyer/investor.. Hopefully all while using the investors money...

Keep us posted..

I have about 10 buyers when I made this offer and tied it up thinking it was for the one that walked thru with me. Then he tells me while it is a good deal it is out of the area for him and he is not investing state wide anymore. Now my other buyers all want it at$30000. I got it for $53000 and it is stil has a lot of room to fix and flip or hold and rent or whatever. Should I bow out of this deal and focous more on getting more buyers? I put out bandit signs that were pulled down in a few days. I blasted my buyers and hit here and craigslist. I got a few calls but from otherwholesalers that dont seem to have a buyer either. but the fact that I have gotten calls still makes me think it is a good deal.

you are wholesaling in. A great way to find good buyers is at your local rei group!

How would I gracefully exit this contract without losing money or looking like a jerk? What if I ask for an extension and I still dont find a buyer? I am a basket case at this point as I will have to address the seller tomorrow afternoon.

I would suggest network,network,network ask other wholesalers if they have a buyer for that property and split your profit with them. maybe drop the price too. If the numbers are that good i would think someone can bring a buyer to the table. try every free listing site also(should have done that from the beggining)
good luck
Richie

Drop the price to $55,000 immediately. Ask for an extension tomorrow. How much earnest is at risk?

You may have learned a valuable lesson on this one. Investors are not buying in this area. If they are buying they want cheaper properties. OR you don't have enough buyers on your list. This is valuable information for you! Look elsewhere OR look for cheaper properties and of course, EXPAND YOUR BUYERS LIST AT ALL TIMES! There may be buyers that want your deal, you just don't have them on your list yet.

Just a note on the math concerning this deal. If I read right you got this deal for $53,000 right? Your investor friend says if you put $3000 in it then it will sell for $85,000. Usually you will not gain $32,000 in equity with a $3000 improvement.

Did you pull comps that support the $85,000? You said it was a foreclosure but I think you mean a pre foreclosure right. If it was foreclosed you would be dealing with a bank or lender of some kind, not the homeowner/seller.

You can gracefully exit by saying the house was not worth what you thought and the repairs needed were much more costly than you expected.

Good Luck and congratulations on taking action! Now learn from it and move on!!

Michael

Have offered to more than 10 on my buyers list, since I listed it after offer was accepted but got no Cash Buyers, most of them want Rent to Own.

it's hard to know if your deal is actually a good deal without knowing all your numbers, but if your buyers aren't jumping at it, there's probably not enough profit in it for them.
Are you anticipating in your numbers closing costs, holding costs, your fee, and your buyer's profit? Do you know what repairs are needed and how much they will cost? ('about $3000 or so', is not good enough)

As everyone else has stated above, you need to know what your buyers buy; you can't just find any deal and offer it to them; it has to fit their criteria.

Wishing you success,

I was told on my deal that my numbers were "too good to be true", so the investors didn't believe me that it was a good deal (even though I have 2 contractor bids for the repairs and itemized lists). Please let me know how you DO get out of this without losing money (I was told to consider mine a "seminar" experience), and without "looking like a jerk" (I now dread the phone calls from my RE agent). I'm struggling with the same catch 22. I asked my agent for an extension and I haven't heard back. I did find 2 "local cash buyers" from my local Little Nickel adds, but it seems mostly that it is other wholesalers as well.
If anyone has any specific assistance on how to save face/earnest money, it would be greatly appreciated!
I'll let you know how mine goes on Monday as well...

~Jennifer

Jennifer,

ask the other wholesalers if they have a buyer, then you can split the profit...

if you can't get an extension, and you don't have a buyer then you should use your 14 day inspection contingency, and pull out; if your agent asks, tell him/her that the repairs are more than what you anticipated.

Good luck to both of you!

I am with you on thie issue Roy. As the Gentleman above mentioned as we aren't experts yet but, I have to admit there has to bea large bank of buyers inplace before you venture out looking for properties.What I don't want to do (And this has happened to me numerous of times) is find a stellar deal and unable to find a solid buyer. It's to much wasted work. Also it's not smart work. With a large buyers list that is well maintained and kept up to date with constant communication. When you locate your property and fine tune the numbers you can send the your offer to those only within that scope or you can fire it off to all of them with a time frame. In either case you spendless time looking for a buyer and worrying about lossing the deal. And more time answering excepted offers. I used to fire off only to those looking for particular criteria. But, nowI fire off to everyone because you never know. Better safe than sorry. So in my case I have a load off buyers it's the properties I need to focus on. Good luck on your endeavors.

DGer-4life

Get your agent to get you an extension. There's only 2 things that can be wrong with this deal, either your numbers are not making sense for the buyer or your buyers are not real players. Have you gotten the comps from your agent? Did you have a contractor give you the estimate cost of repairs? How much are you making on the deal? Are you leaving any room for the buyer to make enough profit. If you need new buyers fast I would advise you to put bandit signs out in the area that say "Single family 3/1 Needs work Must Sell Fast". That should get you buyers. Put an ads on Craigslist. Call other wholesalers. Well good luck, I hope you close the deal.

Do you have your 14 day inspection in your contract? If so pay for an quick inspection and tell your agent it failed. Or do you have any other exit strategy in your contract?

Thanks to all the DGers who commented on this thread. I am continuously learning new options to scenarios. Having inventory is all well, but no buyers to give the inventory to is not too good. I particularly like getting a ton of buyers lined up then focus on their criteria for properties, including their preferred area(s). I figured I can be of better service to my buyers if I give them what they want and a good deal. Win-win. I certainly don't enjoy sleepless nights. Though stuff happens.

I'm a cash buyer in Southern California, it seems it's the opposite here. More buyers than good deals. If anyone wholesales in this area, please PM me.

Pacbac - any update on this? Were you able to get an extension?

- Tom