NO DEAL – the two most frightening words a real estate investor can ever hear.
If you’ve been in real estate investing for any period of time, there probably has been a deal or two that have gone south on you. Let’s face it, no matter how hard you try to dot all the ‘i’s and cross all the T’s, things can happen to derail your deals, which are just out of your control.
This could include:
- The buyer has problems with the lender, sometimes called their “financial partner”. This term is investor speak for “I’m weaseling out of the contract”
- A low property appraisal
- Learning there is more worked needed that first anticipated
- Discovering additional liens or judgments that need to be satisfied
About a week ago I had a wholesale deal collapse at the last minute. Actually, it was 30 minutes before closing, that the buyer sent me a text that they were not going to complete the transaction. I felt like this……
Then I recalled how a few months ago I had to pull out of a purchase for all of the reasons listed above. So the morale of the story is this, “it ‘ain’t over ‘til it’s over” actually “it ‘ain’t over until the check clears”. So just know that just about anything can go wrong up until the check clears your bank.
So how can you prepare yourself for a deal not going to settlement?