What do you do when you’re working with a buyer and you’re wholesaling them a deal. And at the last minute they flake on you
I have this experience with this other wholesaler that I’m working with this new to the game, and he had a buyer that he was going to work with. And then at the last minute, the buyers kind of ghosting them. Now, let me explain something really quick. Unfortunately, the wholesalers knew and he didn’t assign his agreement and get the end from the buyer he’s working with. And he was just hoping the buyer would close or maybe he just didn’t understand this is what’s going on in this situation. This call I’m having the agent, he did get this deal from on market and the agent is asking him for his $5,000 for earnest money when he thought his buyer was going to bring the earnest money. And again, the buyer is ghosting them. So this is a conversation. This is my advice to him. If you’re new to wholesaling, and you’re like, hey, I don’t have the earnest money, you can use the earnest money from the buyer. But if you’re going to do that, you need to assign your contract to them. They need to bring the money to escrow again, something that he did not do. So learn from this experience and learn what the options are to overcome this obstacle. Tyler, what’s up, man? Sorry, I just got your text. So yeah, kind of give me give me an idea of what’s going on?
No. So so what I told you before, so I had I tried, I tried to pass off the end, you know, just have the buyer take care of Of course, yeah. But now we’re into deep because I already passed my first slide closing in the original bicycles put it down, but they weren’t doing it. So now I’m going to come out this end out of my own pocket, and then try to get one of these buyers that we’re talking to now. Unless like I can make it like super quick and then just friggin literally just get out of the deal with $5,000. I mean, it’s not that but the original buyers, they wanted 180 for it. But they were just like I said they were being like super flaky. And they told me like they can have like the paycheck in the mail. And like their, their earnest money in the funds that he passed through like so. You know,
but you haven’t talked if you haven’t talked to him since have you actually
talked to you? I’ve talked to them like the last time.
They haven’t hit you up since
I have I haven’t hit them up because I was kind of done with them. Like I said, they were just like me, I wasn’t like super.
Do you think they were wholesalers trying to find a buyer the whole time to or do you? Do you know, they’re legit buyers?
No. They seem like legit buyers. Because there was three of them. They were all like partners, they said that they do the work themselves that they currently had two flips. They’re working on themselves got it.
Okay, well, so this is the situation like I talked to Sarah. She texted me last night. And she’s like, Hey, I thought you had this deal. 150. And I said, Yeah, I’m sorry, I thought I did. But it was 175. And she’s like, I think 151 75 is too much. And I was like, Okay, well, like, can you go and send your buyer and just at least tell us what they’ll pay so we can make the right offer if we need to renegotiate. And, you know, I honestly just think that’s what’s going on, dude. I think just like people just they’re not interested at the price, even at 175 180. Like, that’s why those people have bailed. So if these guys are, if the agents are like pressing down on you to like commit, I would just say you don’t have it at the right price from just my experience and seeing how she’s reacted and seeing what everyone else is doing. So I would just cancel the contract. And if you happen to find someone else, in the meantime, like then I can call and get under contract and wholesale it but you know, they’re probably not going to work with you again, just because the burnt not that you burn the bridge on purpose. It’s just your buyer was kind of flaky with you. But anyway, it’s just not a deal, unfortunately, at 175. From what I can see, and you don’t have the time to waste, you know?
Yeah, for sure. I don’t even because if the guy just called me today said he needs end checking if I said,
Of course he does. Yeah. And you just gotta say, Hey, man, the buyer that I’m working with, you know, he bailed on me. He was good the whole time. And you know, I’m gonna have to cancel the contract. Sorry.
Yeah. See, I don’t know, because obviously, you know more than I do. And for him, he knows that whatever he’s saying I’d be out 5000 Regardless if I would have back out or something.
Oh, is he going to pull it out of your bank account? No, no, no, he’s not. No. So so let me understand this really quick. So the end you were supposed to close yesterday or your your due diligence period was over yesterday.
I was supposed to close with the original buyer yesterday, supposed to close with
the original buyer yesterday but never had any end the whole time? Because they didn’t put the money down. Correct.
Yeah. So so we were supposed to just today we we had figured out that the original closing date was going to get pushed a little bit due to like we had the title like lined up in there. And we just think rings like a small issue. So finally came up. So our original clothes they were supposed to be yesterday, but it was supposed to get pushed back. Okay. We were still pushing for AMD from these guys. And honestly, like I said, I almost feel like I might just call him back up and like, yeah, I can do 180 Right now if you guys can just send all the checks like tonight, like, there’s more,
you can do that dude, like, ah, but I’m just telling you, I think from my experience is just people are they’re flaky because they don’t think they have a good deal. So if you lower the price, you could see but if are you just be like, Hey, I’m out. Like, I can’t even do this and forget all you guys. I would do because you’re new man. Like, obviously, this is kind of the pains of trying to figure this stuff out. But like, you’re supposed to cancel contracts. After your due diligence period is over, you’re supposed to get earnest money from your buyers. And if you don’t, you know, depends, like it’s on you. If you want to just give him $5,000 And be like, hey, you know, I messed up for me, I probably wouldn’t have been in this situation. But it’s really depends on like, how you want to navigate it, I would just say, hey, look, the guy that I assigned this too, or I was working with, he’s bailed on me. I don’t have $5,000 Sorry, guys, I can still look for a buyer what I’m, I would even relay the fact it’s like, the reason why I’m able to find sell this deal. And the reason why it’s been on the market for like 200 days is because it’s overpriced. So you know, I can for sure close on this thing. Like if you if we negotiate a lower and but you know, I just I would hate for you to lose 5k Just because, you know, everyone was dragging their feet and you just know, it’s not a good deal.
Because I mean, I can go back to this guy like yeah, bro, I’ll but he already told me straight up that they’re gonna have the attorney and I signed up, I signed a purchase and sale. So like, about 5000 Regardless is what he’s saying.
I mean, you know, now and then I’ve been in this game for a while, like, unless you have the money in escrow. They can like files they can, like, try and sue you for but like no one really ever does that. Because like, a lot of times, people back out of contracts, even after due diligence, and like, it’s just such a hassle to, to go get that money. So to be real like, dude. I mean, you made a mistake, let’s be real, because you didn’t know. But like, for me, I would just be like, Look, the house, just like a lot of things fell through. And I was working with someone and you know, I just don’t have that money. Maybe I can pay you and maybe like 10 years or something. But I can’t pay you now. Because again, like that’s why you just got to make sure you’re doing it the right steps, right. I don’t know everything. You’ve done this deal. But you could look at it like, Hey, I told you agent that, you know, my buyer bailed the day yesterday when we’re supposed to close, you said you would extend it. I’m not trying to get locked in on this 5k When I’m been pretty transparent the whole time of what I’m doing and what’s going on. And I wouldn’t pay the 5k I’d say hey, drat you good luck. Get it out of my account. That’s what I would do. Yeah. Well, let’s call it let’s, let’s, let’s call her right now. Let’s call right now and see if she what she’s thinking. Let’s just see what she’s got. Okay.
Even if they just take the original price. I don’t know what they want.
Let me call it. Let me see if I can help you out. So let me call her real quick. So what happens when you try to wholesale or get in the business? You don’t have all the pieces, unfortunately, now and he’s smart. He’s a smart guy. I think his buyer just kind of screwed him over. So we’re calling an agent that might have a buyer right now. She was very, very receptive yesterday, talkative, she’s kind of gone. Am I honest? today? Why? So kind of what happens? They will on a deal. They think it’s the deal they find out it’s not. They kind of ghost you. A so she didn’t answer and you know, who knows what she’s up to she possibly busy. But again, just know, as you keep doing this, when people are really responsive, it’s usually a great deal, or it’s a good deal. When they start kind of being flaky and not responsive. That’s where you know, something’s wrong. And you got to call it out just as soon as you can. Soon as you start feeling. There’s, you know, some hesitation, call it out, be like, hey, what’s, you know, I’ve done a couple deals, you know, starting to kind of feel like, you know, it’s hard to get a hold of you is everything all good. And as soon as you get that EMD then that all that money, all that kind of goes away. Because really, when you get the EMD from the what’s it called? The buyer, then it’s like, you can have it but let me tell you one more thing about EMD. Can I tell you one more thing I’m learning. So I I got a buyer to commit about two years ago to buying a property right before the pandemic hit right. So they put down $5,000 And on refundable, earnest money, they put it at the title company in escrow. And they bailed. So $5,000 there and I said, Fine, we’ll find a buyer and we’ll get $5,000. So we call the title company, we say, Hey, can you release that $5,000 to us. And the title company says we can’t release the money unless it’s agreed upon by both parties. So I was like, Are you kidding me like so we can get that money that’s in escrow. That is said the agreement and the agreement we signed, that was non refundable. She’s like, Yeah, unfortunately, like, the way that the title companies are set up is they can’t release money unless both parties are in it. Because the title companies are normally like, they’re like, not on anyone’s side, right? They’re just like, in the middle. So they’re not like here to take the wholesaler side, or the buyer side or whatever. They just hold the money. And they, so they had to get that agreement. So I waited two years for this lady, finally, to come back. And I just said, Hey, there’s the money. Can you give back to us? And she was like, No. And I was like, Well, how about we just split it, then you get $2,500? Back and I’ll get 25? Because it’s just gonna sit there forever. And she’s like, okay, basically, what I’m trying to tell you is like, even if you had your money at the title company, like in the scenario IMF, like, they’re not even allowed to take your money, like, from the experience I had without, you know, your permission. So, for them to like, be like, Oh, we’re gonna get your money. It’s like, alright, well, you can pry it out of my bank account, like if you want, and I don’t know, if I’m beating this with, like, a, like a dead horse. I’m not trying to go too deep into this, but I’m just explaining to you how like, earnest money works. And I’m not trying to tell you to be dishonest either. I want you to be honest. And, you know, if you knew full well, like, Hey, I’m doing this deal. And I know I’m gonna lose 5k But I believe I’m gonna like I’m gonna go forward and do it just because, you know, I believe I can do this. Like, then I would say, Hey, dude, you you ran you ran the risk, and you gambled but kind of sounds like you were you know, your Meyer was going to do it the whole time. The one step that you forgot was the Okay, bro, let’s get that end today, then let’s get it done now.
Me and Craig an assignment?
So in could you, I know you’re saying like, Hey, forget this guy, right? Like you don’t want to talk to anymore. But is it possible if you call him like and just be like, Dude, you know, I’m in a really tough spot because of what we’re at. Like, can we can we just get this thing done? Like, are you just never gonna?
That’s what I was saying earlier. I’m thinking that like, maybe I’ll just reach out to the guy today and just be like, Hey, if you guys can do it, they told me gonna be like, I’ll still make money off of it. So it’s not bad. It’s just not where I wanted to. Cuz he was like, you know, we feel comfortable. We can do it at one, eight, but that’s the highest we can go.
So he’s already trying to renegotiate you down then, huh?
Yeah, he’s been trying to do and he’s like, Hey, man, can you run back and talk to the guy? See if we can renegotiate. Because he’s like, man, we’d really liked it out. Right? You know, if you got out like on 6175.been trying to do and he’s like, Hey, man, can you run back and talk to the guy? See if we can renegotiate. Because he’s like, man, we’d really liked it out. Right? You know, if you got out like on 6175.
No car said trying to beat you up. All right. Yeah, that’s exactly see I thought they were just super ghost you completely and like that you could even get a hold, definitely do reach out to and be like, Hey, guys, I’m in a tough spot. And we just need to get this thing done. And just get it done. Dude, there’s, like, Sarah already talked to her. And she’s gonna go over there. But she she’s already kind of thinking about being around like 151 60. So that means you’d have to get it for lower. So yeah, just go with these guys. And yeah, let me know how it goes. I appreciate it, man. Yep, he’s got to do it the right way. Again, here in this situation that we just watched, this is what I would recommend doing. Now. You have to be honest and transparent. And all that you do. Don’t you don’t want to lose sleep at night from not being straight, direct and real and honest. So what you need to do if you’re going to get into wholesaling is definitely disclose that you’re not going to put down any earnest money until your due diligence is over and tell your buyers that you’re going to work with Hey, hey, I need you to put down the earnest money. Because you know, I’m not going to bring it let them let everyone know what’s going on. So you’re not stuck in a situation with an agent where they’re like, Hey, bring me the earnest money and you don’t have nurse money because you’re brand new. So anyway, make sure you do it the right way. And I also recommend that you get a coach whether it’s me whether it’s get a mentor, get someone that can help you so you’re not stuck in situations like this and follow me for more information. I’m here to help you on your journey. So hopefully this was helpful and tune in for the next video.
