Wow!

[verbatim 1]

You have a home under contract that needs 5k in repairs and has a 5k lien on it. You require the lien to be paid by the buyer at closing. After some marketing you get 3 initial offers:

A. only $1500 profit [will pay lien]

B. $1500 up front and 1k a month for 4 months [will pay lien]

C. $4500 profit [tire kicker who wants you to pay the lien and be reimbursed by him]

 

 

B makes a verbal agreement, then when you try to sign a contract he doesn't return your calls. C just calls every few weeks with a lower price and no commitment. A is ALL ABOUT IT! And why not he's getting it at a great price.

 

You sign a contract with A and try to set a closing date, but she states she wants to pay the 5k lien as required by seller[you] and get the documents back from lien holder [which takes 3-4 weeks] before closing. 2 weeks after A pays the lien B calls asking if you are still going to close on the date he suggested, which is 2 weeks away.

 

As it is an extra 4k and you have a clause that can get you out of the contract with A, do you:

 

1. Sell to B and reimburse A the 5k + maybe $500-1000 for 4 weeks wasted

2. Sell to B and reimburse A the 5k + nothing

3. Sell to A since he signed a contract 1st even though you have a clause to cancel.

4. Other

[MichaelC 160]

I'd opt for door number 3, sell to buyer A. It's the old "bird in the hand" mindset I have a tendency to follow. The fact that buyer B disappeared for a few weeks doesn't give me a warm, fuzzy feel. Plus, none of these deals is oozing money, so I would opt for the seemingly more serious buyer, put the bucks in my pocket, be done with it and move on to bigger and better things.

My two cents. . .

[verbatim 1]

I'd opt for door number 3, sell to buyer A. It's the old "bird in the hand" mindset I have a tendency to follow. The fact that buyer B disappeared for a few weeks doesn't give me a warm, fuzzy feel. Plus, none of these deals is oozing money, so I would opt for the seemingly more serious buyer, put the bucks in my pocket, be done with it and move on to bigger and better things.

My two cents. . .

 

I agree 100% Mike. The fact that buyer A was able to push the button while others kicked rocks was impressive as that is the type of investor I want to work with. It would make no sense to burn that bridge. the other buyers didnt give me a good feeling either. My gut told me to be honorable and do the right thing, but as I am new to r.e.i. I had to ask. For all I know it could be common place for some of the investors I respect on this and other forums to rip up contracts daily over situations like this. I was just checking.