<p> If you have not heard this statement in your real estate investing, likely you will sometime in the future: "I need help on this deal, help me now and I'll make it up on the next deal." In thousands of deals I have run into this many times and the result is predictable, but there is a solution. </p><p> I don't want to paint a broad swath of guys making this "do for me" offer who never come through but it happens too often. The most common places where I see this "offer" is from closing agents, contractors, investors in deals with me and investors where I do transactional funding. </p><p> When I am doing transactional funding sometimes I get requests for doing this funding at a huge discount in return for future fundings. The investor tells me he has five more coming up in the next two weeks I am already the lowest cost transactional funder in the country so "why do I need to reduce my profit and increase my risk for future business?" Repeat funders with me do get discounts on their second deal forward but they have complied with my initial rate request. </p><p> I do get funding requests literally a few days before a closing. The call comes because the investor didn't realize he needed funds to close the "A - B" leg of the double closing and is stuck without money to close and faces losing the deal. If he has asked relatives or friends he quickly finds out how much they love him but that they don't trust him with their money! They don't say this outright but instead have a stream of excuses that just seem to last forever. </p><p> The listing agent if there is one, the seller, the end-buyer and the closing agent are all looking at the investor like bloody meat being dropped into a shark feeding frenzy and constantly asking, "Where's the money?" Desperation sets in and the investor hits the internet trying to find transactional funders. Few to none will do funding in a few hours even though they say they will simply because of the inherent risk of losing their money. </p><p> The flip side with me as the funder is the investor says he has other deals coming up and I will get all of them - I was once told by an investor that he had seven more coming up in two weeks. I agreed to fund the deal at my lowest rate and the investor wasn't satisfied and wanted ½ of what I was charging. He finally agreed when I said to find another funder for the closing the following day. He couldn't of course and he paid my absurdly low normal rate and said he would give me his future closings and I said I would further reduce my rate on the upcoming deals. </p><p> Weeks went by and no deals so I called the closing agent and he said that the deals had been done and I asked who did them. His response was the investor found a relative who simply deposited the money for the most expensive deal coming up into the attorney's escrow account and let it sit. I can't beat that deal of essentially free money. </p><p> However, there was a nice reward for me that the investor didn't realize. The HUD statement for both sides (A - B and B - C) showed how he was buying and selling properties at the same price on flips and making 12% to 20% on each deal! I know that immediately sounds absurd and impossible but it isn't and I have been teaching it to my Students ever since. I am sure you are still thinking it's impossible but I have since funded many of these types of deals and had Students do many more! </p><p> In summary, whatever the situation you are looking at, remember that the promise of future business is a long, long way from ever coming true. Salesmen see this in their jobs probably every day with new clients who promise to give the salesman all their business if only they will shave their price on this current order. </p><p> I always respond with, "OK, let's do this deal as I have offered and we will talk about the next one as it comes." If the relationship you are forming with the prospect or client is based solely on COST, your relationship can be replaced very quickly by the next guy who wants the business so badly he doesn't care about making a living. He too will be replaced after the first or second order with the next lowest priced vendor. </p><p> Even with a homeowner selling his only home, you'll hear, "I have another investor making me an offer at $xxx,xxx.xx, I like you so can you match it or preferably do better?" Ask yourself, "If that's true, then why me?" I am guessing but I suspect that sellers have said this to me about 1,000 times. I always respond, "Great, I am really happy for you!" and I go on to explain that I can't afford that offer and please call me back if the other offer doesn't work out. About 85% of the time I get a call back with an excuse why the other offer didn't materialize, the reality is that it was a lie to start. </p><p> There are ultimately only two outcomes in making offers and getting deals, someone else pays too much and he gets the property - which could be his last deal in his short career. Or, you get the price you need to make it work by being there when the other offers fall away and you get a deal that makes sense and money. <a href="https://www.home247.co/%E0%B9%80%E0%B8%8A%E0%B9%88%E0%B8%B2%E0%B8%84%E0%B8%AD%E0%B8%99%E0%B9%82%E0%B8%94-%E0%B8%81%E0%B8%A3%E0%B8%B8%E0%B8%87%E0%B9%80%E0%B8%97%E0%B8%9E/" alt="เช่าคอนโด กรุงเทพ">เช่าคอนโด กรุงเทพ</a> </p><p> The opposing investor who made the ridiculously high offer may have no intention of closing at that price. He used the seller's greed to get the contract but will renegotiate the price before closing and likely pay what you offered or even less. Mention this to your next seller as a way to help deflect the higher offers. </p><p> To your limitless success! </p>
