My Rehabs Are Selling!!!-but Still Getting Resistance From Team...
Well, with much persistence I now have a couple more rehabs under contract and set to close over the next two weeks.
More money back in the Corp. bank account!! Yea! (Oh yea and thanks to my good old sales skills, I sold one myself, even though I still have to pay the buyers realtors commission-long story)
However, I am getting alot of resistance from my good friend and realtor that has worked with me over the last couple of years, over going the more "creative" route (alt. purch. financing and alt ways of marketing to sell, and selling discounted note on close to cash out immediately or double close, etc...)
I am seriously researching and looking into other creative financing options that I have discovered on this site, including layered financing (to 100%)combination of loans, marketing to private investors for funds, and many more...
I really need to establish better cash flow for the Corp. on the next moves and am feeling cautious about spending that money again.
I even had an investor / partner almost back out with his money this week even though he stands to at least double it this year. (from 75K to 150K) Luckily, I saved that one too!
My confidence has always been in knowing that I have negotiated a good price (regardless of type of deal), and with as little risk as possible. And that my contracts are negot. and written properly with protective contingencies, escape clauses, $$ security, etc.
My question is, should I be as cautious. Maybe it's just natural once you get a big chunk of change back in your hands to feel that way. But I have to keep the cycle of buying and selling going immediately.
My fear is that I may be drawn by realtor associates to properties closer to FMV even though they know exactly what my needs are, and end up in a non-productive cycle. I'm tired of hearing, "Yea but those deals don't come along very often".
Has anyone had experience with RE Attorneys handing docs and transactions for them rather than realtors.
I'm really not sure which would likely be more conservative minded, not to mention cheaper to deal with, until I am more familiar with all aspects.
I'm hoping some of your thoughts or experiences will come back and maybe give a fairly new full-time investor a little boost.
Thanks,SG
Sounds like you are doing a great job to me. The only thing I can comment on has to do with your realtor:
1. Of course he is not into you doing any kinds of creative financing because it cuts him out of the loop and that = no commission
2. Of course the realtor will draw you to properties close to FMV because it gives him more of a commission
Whoops, I guess there is a pattern here, go figure!
Sounds like it is time to find a new realtor, because you've grown as an entrepreneur and he has not as a salesperson.
Good luck, Dave
As in any business when you think outside the box you will face resistence. Do not let their comments bother you,keep on keeping on. Your team will continue to change as you are in the REI business longer.
When you have the balls to think outside the box, that is when you become a success story....people who keep doing the same thing over and over, may succeed, but will usually GET the same results over and over....go with your gut feeling....
[addsig]
from what your saying you are making good profit. keep doing it. actions speak louded than words. there is nothing wrong with caution it is a good trait. keep up the good work.
In FL, most people close with a title company, instead of a RE Attorney. If however you are doing really creative stuff like double closing, recording deeds at closing, etc then you should use a RE Attorney.
For the Purchase and Sale agreement I use the FL standard contract and fill it in myself. Very easy.
Not sure which docs and transactions your realtor is handling for you. I do not use realtors very often. And when I do, I have found no advantages. In fact, I hate it that they are talking to the other realtor or home owner.
Brenda
Thanks All,
Disclaimer:
Not dissing RE Agents here... just my experience.
Brenda- Yes I agree, It didnt take long for me, with all the preparation that I had done to enter RE and get this far, to realize that I new more than most of the realtors I was initially dealing with. Many of which, were not even what I would consider to be good salespeople.
(now I only use two) As you know, it seems sometimes that 6 out of 10 people here (FL) in any given room are realtors or ex-realtors.
The fact is I have assembled a very good team to work with.
But, I have learned and can see that as competitive as our market is here in S.FL that as investors we have to....
Be VERY open minded, while understanding the importance of focus and specializing in a particular area of RE investing.
And be prepared for any situation / opportunity that arises. Whether a Pre-foreclosure, Rehab, Sub-To and flip, whatever.
I know that we have all experienced those missed money making RE opportunities. There are a few that come to my mind right away. Those we never forget, as I have read from other posts here too!
It seems, The real key is continued EDUCATION.
Thanks, SG