Have you been wondering how it actually looks to get a deal done with someone that’s in pre foreclosure want a real life scenario right here, I have a call that I did. Actually a podcast, I deal with one of the people I’ve worked with to close a deal as a $10,000 deal of someone in pre foreclosure. It wasn’t pretty, but this is the full story and explanation of how we got it done. So if you’re having issues or you with a pre foreclosure deal, or you want to know how it works, check out this video that we shot. Let’s start from that position of the deal. So you had an under contract, and you were like, I might have to cancel this. And I was like, well, we’ll wait. This might be a good deal. Don’t do it yet. Tell me what what was going on at that point? What had you done to get the deal like what was going on at that point where you’re like, think I’m just gonna cancel?
Well, what was causing me to cancel it was, it took months for the and I mean, literally months for the couple to feel comfortable with started, you know, starting to talk to me about the process of helping them they were an older couple, they were getting tons of phone calls, and they know who to talk to who to trust. So eventually, I was able to get them to trust me, we ended up getting a contract on the deal. However, what happened was, once a title search came back, the liens ended up exceeding the offer price. So it ate up all of what we, you know, we’re expecting to make and the deal a lot a lot. Right. And so that’s why I said, I think I’m gonna have to cancel.
Okay, so at that point you had offered, do you remember what price you had offered them for the house?
I believe it was 125 is what the initial contract was supposed to go through for
okay. And they actually owed more than that you’re saying, right,
t was? Well, at first, we were under the impression that it was $105,000, or would cover it all. But once everything came back into it up exceeding 125.
And there was things popping up left and right and right, as time. They’re like, Wow, you got to pay that off. And that off and all that. So when we had met, I had ran the numbers, and I was like, this is potentially a deal at like, 131 4150. Right? That was kind of what I was seeing, because I think the error rate was like 250 to 300,000, maybe even a little bit more. And, you know, it’s in Richmond, right? So Richmond, Virginia, is that correct? I think that’s right. So Richmond, Virginia, and that’s a you know, a place that’s a hotbed there’s a lot of, you know, good properties and flips going on. And for me, I’ve never been to Richmond, Virginia. Have you been to Richmond, Virginia? Yeah, I’ve never been there. So that’s the kind of the cool thing about doing real estate is like, you can do this from anywhere like I’m in Salt Lake City, Utah. So I saw this deal news, how to get contact buyers, we started reaching out to the buyers in that area that were able to contact and we started finding, because when we had connected, I was like, Hey, let me find somebody. So we found someone named Joe, one of my students in my program to he was able to find a buyer for 140. I think that’s okay. So let’s talk about that. So we get the, we have some showings, we have a buyer 140. And I think we tell the seller, like hey, we’ll just pay off everything you owe. And that’ll be it. Right? Is that kind of the situation that went out? Because and I remember like, there being a time where the seller just like stop talking to you. And to me, it wasn’t that like what happened. And we’re what happened at that point where they just like, you remember, like, they just feel like, hey, let’s just give it to the bank we don’t even care like will ruin our credit. We just whatever they just gave up is that what was happening?
Well, there was a second after I got in the first contract. There was another buyer that came in that was very, very interested in the property. However, this fire was coming through from other wholesalers against my wishes. My partner who was working with me wanting to work with them, ended up with just kind of making there was an actual buyer, but they were just kind of making a lot of demands. And that deal ended up not working out it was a little Christmas holidays. And you know, rightfully so. They didn’t close. That’s right. They didn’t want to move. It was just a you know, they had a granddaughter, they were raising a grandchild. It just wasn’t a good time for them to move. And so yeah, so you’re a buyer. Yeah, in my opinion, you know, in my opinion, when we came in and we started working with you, the reason why he stopped communicating was your buyer made an offer but then he could not find anywhere to stay.
Hmm, that’s correct. Okay. Yeah, that’s what ended up happening. Yeah. And I remember they were just kind of at that point. They were like, Hey, let’s we’re just gonna like not do anything. Right. Yeah.
He was very excited about moving he want it to move, because, you know, the house was not in good condition. And he felt like as if it was going to be an opportunity for them to start over. And I was trying to find them somewhere to move, but because of his credit, they were having all kinds of issues. So because he did not know what to do, and because he did not have anywhere to go, he completely stopped talking to me, gotcha.
And I Okay, so this is what happened. At that point, our buyer that I had brought was we had assigned it to the buyer, we had assigned him for $10,000, to compensate, you know, us for tying up and saving them from, you know, the free for from the foreclosure hitting their credit and all that stuff and getting out of there, and then they didn’t want to move out, because this happens all the time. They just don’t want to go or they don’t they say they don’t have anywhere to go. Yes, that’s, that’s probably true. But at the same time, like they’re gonna eventually have to go somewhere when the bid when the bank takes it. So we were willing to help them, we were willing to give them, you know, move, move the pay for the moving costs. And I think that’s what the buyer that we had assigned it at that point, they kind of just took over, right? Because we had to sign that paperwork to them. And they’re like, Hey, we, you know, we want to move forward. We’ve already you know, have our interest in this property. Is that right? That’s what was going on, because I was kind of out of the loop at this point once we assigned it, right.
So he, he was working with a realtor who was helping him and so the realtor kind of, you know, took over in terms of the paperwork, and in terms of the negotiating, but you know, the buyer wasn’t in touch with them either. So it was really, you know, I haven’t thought about this since this happens. And this took place months ago, but it just landed on my shoulders to try to get him to, you know, give us a call back and start, you know, the negotiation process again, thankfully, your buyer did not bail out he went, he really wanted the property. You know, what ended up happening is that he offered me he came with some really good offers, he offered me, because he had his he had his own crew. So he offered manpower, he offered $5,000 to the seller. But like the seller didn’t have anywhere to go.
So yeah, that buyer is definitely a great buyer in the sense he wanted to help. But let’s talk about how, at the very end, they kind of almost tried to cut us out because of the paperwork. What I said we were able, unfortunately, they tried to cut us out, but you can’t cut someone out when they assign you the contract, you know?
Yeah, well, you know, you know, so I’m remembering things as you are talking because you did just remind me still at one point, I am not enrichment. So I am working virtually just like you. And the so I gave the realtor and the buyer permission to go and I thought it would help if they went to introduce themselves and kind of establish a relationship with the seller. Then after that the realtor stopped communicating with me and I sent you a text or you called me. And there was some kind of verbiage that you gave me it was one sentence, I can’t remember what it was. But I sent it over to the realtor. And he called me within like 15 minutes.
Yeah, I remember so so for everybody that’s listening what happened again, she connected the buyer that we had assigned the deal to to the seller because they were in Richmond and they were like kind of you know, helping each other out. And the agent that was helped, you know connected us to the whole thing and the to their buyer stop talking to us. Almost like hey, if I stopped talking to him, we don’t need to work with them. And for us, we were like hey look like this deal wouldn’t have happened and brought to your buyer without us. And he was ghosting Jacqueline. So I said hey, Jacqueline. It’s unfortunate that this agent is ghosting us but all you have to say is hey, Mister missus agent, you know, we signed paperwork, we had an agreement, I don’t want to have to call the Board of Realtors and tell them that you’re not like being you know, working with us and trying to get around us on a deal that we did. And because he’s licensed and he’s not trying to like have I guess any derogative marks or whatever he immediately was like, Okay, what’s up? I don’t want you to complain is that’s kind of what happened, right? You’re just like, hey, don’t make me complain, because don’t go around me pretty much. Right.
Exactly. And I know that it was, you know, it was from that verbiage because I had been trying to, you know, we went from talking on a daily basis, and he would always return a phone call to I think it had gone like four or five days. It just wasn’t returning a phone call. So when I sent that over to him, he immediately called so
I love it and someone says these are exactly the solutions and methods the painless wholesaling program will help you learn and execute. I’m not sure who that is. But thank you for throwing that in there just as Facebook user but look, Jacqueline, I’m curious to be honest. I’m not like tooting my own horn or anything but do you feel like this scenario you’ve been able to do it without you know, a little bit of guidance or you think you think you got to figure it out yourself?
Now I think the deal would have fallen flat. I think I would have absolutely given up because like I said I didn’t know even From the beginning, you know, I was working pre foreclosures. And so from the beginning when the liens exceeded the offer price, and the buyer, you know, decided they did not want to increase their offer. I didn’t know what to do from from that point between you asked me to give you a call and between that verbiage that you gave me to give to the realtor, which prompted the realtor to give me a call, I 100% know that this deal would not have gone through had I not had your assistance.
Well, I appreciate you saying and the only reason I bring that up is not just to say like, Hey, I’m mad, because obviously we’re all improving and where we’re at. The thing is, there’s so many little details that happened. And I think a lot of people they lose out on opportunities because they try to figure out everything themselves. And for me, that’s not the way to learn you need to if you can connect yourself with people who have already done it and you can just ask them you’re going to progress far faster than if you just tried to learn everything on your own. It’s better yeah,
I completely agree. Because you you know, you kind of learn what you need to learn and then at some point, you know, I hear someone say, especially when you’re getting into wholesaling I don’t know about anybody else, but I certainly had analysis paralysis and so at some point, you know, it’s time for you to pick up the phone and you have to start well because of that with this job you learn as you go and so that’s where it helps to have someone like you come in and say you know what, I’ve had that scenario this is what you need to do
right and you know what’s interesting like as I’m as I’ve been in real estate for several years now, but I’m still you know, when I come into you know, multifamily into certain seller finance opportunities where I always reach out for advice even though I might know how to structure it or I think I have a good idea I kind of want to that’s done more deals in me or someone that I feel like is you know, has a little bit more wisdom in that aspect. So I think you’re always no matter where you’re at you should always be reaching for others, you know, in networking, trying to find out better ways to do stuff.
Yeah, I completely agree. And you know, unfortunately, people are not you know, always available and that’s completely understandable. But you made yourself available and it ended up being a painless process in the end so I’m very happy of painful but it is a painless process because as Natalie
Exactly. Like that video, hit that like button. Thank you