Doug Pretorius (ON) 9 Report post Posted September 13, 2004 Thanks everybody, it's been a great learning experience, the next one should go much smoother Michael, as you've pointed out, it isn't over until you cash the check. So I will continue moving forward, taking new applications, and letting people know there's still a chance for them (if not with this house, then with the next). socharming1 & Mr.B, the deposit I'm referring to above is the $500 I collected from that couple to hold the house until tomorrow. It is non-refundable now that the seller and I have approved them for the house. If they don't get the rest of the money ($5,500) to me by the end of business tomorrow, they lose the house and their $500 (which they paid in cash). I get to keep it because it's a deposit to prevent me from selling the house to someone else for 3 business days. If they don't close, they obviously lose the deposit. In the future I plan to press anyone who wants to a private showing, to bring a cash deposit with them just in case they want the house, because otherwise it will almost certainly be gone before they have a chance. It also gives me something for my time if they decide to pull out. In this case my mortgage broker pulled their credit for me for free. In the future I might not even bother pulling people's credit, the fact is every single one of these people have terrible credit, that's why they want to rent to own. Or if the seller insists, I might pull their credit myself on one of those credit check sites. Share this post Link to post Share on other sites
Mr Saint 0 Report post Posted September 13, 2004 Hey Doug, I've been absent for a few weeks and just caught this thread. Well done and good work! It's great to see you making this thing happen and very well I might add. As a reply to the last post. I collect the application and fee mainly for the current landlord part. That way I can see if they are currently paying their rent. If they're not paying now, then they probably won't be paying me either. Like you said, their credit is most likely going to be shot...which we expect anyway. Share this post Link to post Share on other sites
Doug Pretorius (ON) 9 Report post Posted September 14, 2004 Thanks Mr Saint! ...the saga continues... Another update: The couple who put up the deposit does not have the money, they're hoping an insurance payout will come in by next Tuesday so they can buy the place. Of course we all know I can't run my business like that, so I told them they they need to come up with at least $1,000 by the end of tomorrow for me to hold the house another week. Otherwise, I will sell it to the first buyer with the money, and if I do, I'll give them their deposit back (which is otherwise non-refundable.) There's almost 100% NO chance they can come up with even that $1k by tomorrow. So several families are going to have their prayers answered by my phone call tomorrow: "Mr/Ms Buyer, if you've got the money, the house is yours." Share this post Link to post Share on other sites
MichaelC 160 Report post Posted September 14, 2004 Nothing that is happening at this point is unusual. Many prospects are dreamers, and will try to enter a deal on a wing and a prayer. You're playing it correctly, Doug. First person who can put cash in your hand is your t/b. Never consider the deal done until the papers are signed and all due monies have been paid to you. Until then, keep all possibilities open, tell all interested parties the property is available, even if you have a deposit in hand, and continue to market as if there are no interested prospects or possibilities. Share this post Link to post Share on other sites
Doug Pretorius (ON) 9 Report post Posted September 15, 2004 Well imagine this...they've got another $1,000 to hold it till next week. However, as you said Michael, I will continue to show the house as if I have no deposit. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted September 15, 2004 Well imagine this...they've got another $1,000 to hold it till next week. However, as you said Michael, I will continue to show the house as if I have no deposit.Just a reminder...... Share this post Link to post Share on other sites
Doug Pretorius (ON) 9 Report post Posted September 16, 2004 Well imagine this...they've got another $1,000 to hold it till next week. However, as you said Michael, I will continue to show the house as if I have no deposit.Just a reminder......Now if the prospective buyers would just cooperate... LOL! I called the two most interested people and neither of them have returned my call. On the other front, I collected the next $1k from the first couple, so I've made $1,500 from this deal so far, regardless of what else happens. It's kind of funny, but I think this couple is actually more concerned that I will sell the house to someone else, than I am about whether or not they will get the money together! Share this post Link to post Share on other sites
Adam King (MI) 1 Report post Posted September 16, 2004 Doug,Get in there and complete their commitment if they qualify. Have them sign papers regardless of you continuing to show the house. You have to slam these things or don't be surprised if they continue to fall apart. Closing professionally and quickly is the biggest part of this business. I'm sure you have your ducks in a row with the paperwork etc. Prove to them you're not playing games!Just my two cents,Adam Share this post Link to post Share on other sites
MichaelC 160 Report post Posted September 16, 2004 That's excellent advice from Adam! Have the potential t/b's sign as if the deal is done. Do so with an addendum that states the deal is null and void, and all monies paid are nonrefundable, if certain parameters are not met. Those being the balance of the option money paid by a certain date. Let's 'em know this is serious stuff, and should light a fire under them, if it isn't already burning.In the meantime, though, the deal ain't done. So, keep talking to every other potential t/b prospect. Cover all your bases, oh great North Woodsman. :ph34r: Share this post Link to post Share on other sites
Doug Pretorius (ON) 9 Report post Posted September 16, 2004 Adam & Michael, thanks, that's great advice. I can see how that could be very useful in certain situations. In this particular case I don't think it would make a difference to their trust or commitment levels. I'm sure you've seen that "look" in buyer's eyes before, last night when I was collecting the deposit, the wife's eyes were glimming with excitment. When she talks about the house, you'd think she's talking about her one true love! She can barely stand still she's so eager to get into that place. Share this post Link to post Share on other sites
Doug Pretorius (ON) 9 Report post Posted September 16, 2004 Hey just to prove I'm not sitting on my hands, I have another appointment to show the house on Saturday Share this post Link to post Share on other sites
MichaelC 160 Report post Posted September 19, 2004 Hey just to prove I'm not sitting on my hands, I have another appointment to show the house on Saturday I thought everyone sat on their hands in Canada? How else do you keep 'em warm? Share this post Link to post Share on other sites
Doug Pretorius (ON) 9 Report post Posted September 21, 2004 SIGNED, SEALED and DELIVERED! It's official. My first CA is complete, all parties signed, all monies paid! What a relief! Brief chronology:August 27th: First phone contact with the seller (FSBO ad).August 28th: Met with seller and approved the house.September 1st: Signed with seller.September 9th: Collected deposit from buyer (2nd person to look at the house).September 15th: Another $1,000 added to the deposit.September 21st: Remaining $3,250 collected and assignment signed off by buyer, seller and me. On to next! Share this post Link to post Share on other sites
mpine 0 Report post Posted September 21, 2004 Doug, Congrats on a killer deal, now that I see these deals work in Canada, they must work in NY!!!!! CONGRATS again. Mike :ph34r: Share this post Link to post Share on other sites
grannyguru 0 Report post Posted September 21, 2004 Once again: CONGRATULATIONS!!!!! Now, off to spend all that lovely cash! Enjoy! (Looks like I'll have to make a copy of this post, so I don't have to keep typing it everytime you close a deal! ) Alice Share this post Link to post Share on other sites
