I love having a blog because you can instantly and easily write posts when something inspires you.
I’m going to tell you why I’m a HATER, well, maybe not exactly but continue to read, you’ll have to draw your own conclusion.
If you don’t know, I love Twitter. I probably don’t use it properly. I probably say too many unprofessional things, maybe mix too much personal with business. Who knows, I truly use it to connect, interact and engage others. Maybe that’s not its intended purpose but I certainly don’t use it as an extension of my sales pitch (which I don’t think I even have)
I’m one of those weirdos who actually get excited that someone send me a Direct Message (DM) or an @ reply. If you ever send a message to @motiv8td you’ll probably notice I get back to you pretty quickly. Its not because I don’t have better things to do but I actually love someone that takes a moment of their time and interacts with me even if its in a small form of letting me know, I was on their mind for at least a split second. How cool is that for someone to be thinking of you, something you said or something you’re doing and they’re across the country, different time zone or even in a different country? I love it!
I don’t like holding long drawn conversations through DM’s or @ replies though. I would much rather go to email, phone or some other variation of holding longer conversations. This brings me to why I HATE you.
I received an @ reply today. I wont’ disclose who it was because unlike crappy Wannabe Guru’s I’m not looking to call this guy out. I would like to point out his inability to realize when someone who is very experienced and knowledgeable (regardless if I haven’t turned out to be a red pill product pushing guru ) is giving him actual and sincere advice without even using any F bombs or phrases like, ‘You’re Stupid’ like others have heard from me. Trust me, those guys deserved it.
So what did I say to him? Well, I told him lets move this conversation to email because he used a term I wasn’t familiar with and it probably would take more than 140 characters to explain it. Turns out, I think it’s a phrase he probably made up on the fly because what he was describing isn’t even possible. Someone else saw his same tweet and compared it to Santa Clause, Unicorns and the Easter Bunny. I couldn’t argue with it once I realized what he was saying.
This discussion was in the Short Sale world of REI and said some things that as an experienced, knowledgeable investor that I am, instantly knew it was a bad idea for this new(er) investor to get himself into. I expressed my concerns and told him to walk! Even great minds like Peter Giardini will tell you that some of the best deals he’s ever done are the ones he walked away from. Go ahead, ask him, he’ll tell ya that’s the truth.
What was his inexperienced response?
I wouldn’t quite say “I don’t know what I’m doing”. Am I a newbie, yes indeed. Honestly, you sound like a huge HATER so this is going to be my last message to you. I have an A-B and B-C contract addendums that should have me covered as far as ‘assigning’ and deferring the majority of closing costs. But what do I know…
Again, remember, I’m not going to call him out by name. My hope is that since he won’t listen to me in email (BTW, don’t ever tell me that I’m a hater and this will be your last response to me, it doesn’t sit well with me because my advice and help is sincere, just ask John from ***john****it.com (using *’s for semi-privacy) when I asked him nicely if he’s ever cleared a short sale successfully because I was going to offer to give a boost but he responded with something dumb and I left it at that. I wonder if he’s done anything yet? Probably not.
Lets use this horrible mistake by this newer investor as a learning experience for yourself in how to treat those who has reached the level of success you so desire and is offering actual and sound advice.
I wouldn’t quite say “I don’t know what I’m doing”
Ok, understandable but, there is some evidence that you don’t, just sayin……….
Am I a newbie, yes indeed
Yes, and that’s ok. Everyone started out new.
This is where you don’t want to make the same mistake!
Honestly, you sound like a huge HATER so this is going to be my last message to you
Really? a Hater? I guess I do HATE you and that’s why I interacted in the conversation YOU started and was offering you experienced advice that put nicely, Stupid People pay for that I simply give out for free because I actually give a rat ass. Take it or leave it but, don’t call me a HATER or I’ll resort to my standard unprofessional and typical responses like your the dumbass douchebag that doesn’t know what the F you’re talking about broke ass. But, I won’t because again, I actually care, I ‘liked’ ya until now and I thought you were smarter than that. Maybe I was wrong? I hope I was. I really do enjoy interacting with others who are on their way up the success ladder. It’s exciting to watch and be a part of someone’s success while it happens.
I have an A-B and B-C contract addendums that should have me covered as far as ‘assigning’ and deferring the majority of closing costs
What can I say? I see two immediate problems with what you just said to me. First is ‘should have me covered‘. Really? You’re going to rely on ’should’. How about you listen to the guy that has made many more mistakes than you have and can help you from making the same mistakes. One of my most expensive mistakes was thinking ’should’ did cover anything other than my skidmarked underwear after realizing the level of my mistake that ’should’ have been covered.
Second is very easy to detect from anyone who has ever done a short sale in today’s market. The word ‘assigning’ does not belong in the same sentence as A-B & B-C because the entire point of having a A-B & a B-C is that ‘assigning’ isn’t even an option………just sayin. Double closing costs you money! Period!!!! Of course, it doesn’t need to be yours and transactional lending blah blah blah but if you’re telling me your offer is only $30k and you’re ‘pretty sure’ you could flip for $35k (this part was in the previous email by him) then again, as I said in the email to you, you won’t be able to make it happen. It will cost you more than $5k just to close it. Don’t believe me because I’m a HATER? Ok, fine! Instead of putting it into a course and then expecting you to pay for this information, I’m going to do something for you for FREE, take a look at the example using the exact numbers you said.
A-B side:
- A & B Realtors commissions
- Transactional lending
- Closing costs (we’ll include all the title/closing costs here to keep it simple)
This would equal typically on average a total of 10% of the purchase price, in your case $3,000. Now, of course you shouldn’t be paying any of the closing costs on the A-B side if you do it right but there are times when the bank will only cover a certain % of the closing costs. This is more than likely something you won’t have to worry about if you’re experienced and know you can make the lender pay for all closing costs but, and I mean a BIG PHAT ASS if the lender says something like ‘We need to NET X amount’ and that amount is higher than $30,000.00 then 2 things are going to need to happen, One, you will need to help cover some closing costs or Two, you will need to tell the end buyer they have to pay more for the house than you just contractually agreed upon or cover the costs yourself. How well do you think those two options are going to go?
B-C side:
- Realtors commission
- Closing Costs
- Processor fees
B-C side Realtors unless you miraculously as a newbie were able to ‘market’ a property that you don’t own nor have permission to market legally and found a buyer all by yourself. Then, maybe you could get away with not paying any Realtor commissions. For your sake, lets hope so because you now own the property and you’re into it for a total of $33,000.00 and you’re B-C contract says’ you’re selling it to them for $35,000.00 We’re running pretty thin here so far, lets keep going since I’m such a HATER.
Good luck trying to pass the closing costs onto the buyer. I am able to do this a lot of time because buyers are programmed by their buyers agents (I sell to retail buyers for the biggest profits btw) are pretending like they care about their clients and tell them to offer just below asking price (which I only sometimes accept, based on what I’m about to say outside of this isolated point) and I’ll usually accept it if they pay all closing costs. If I’ve got multiple offers which happens quite a bit, I’ll accept the highest that will pay for closing costs because I know ultimately, I’ll take more home than just to accept the highest offer in general.
In your case, lets assume you can’t make that happen because you’re not experienced enough to know how to think out the process and you probably didn’t read that in some overpriced course by a flashy guru. Maybe I’m wrong, and lets hope I am but would bet that I’m probably right on point so far. You’re going to have to pay the closing costs as the seller and guess what, they closing costs are not based on the $35,000.00 sale point, not the $30,000.00 price you bought it for. So knowing the realtors commission is going to run you 6% and closing costs will or ’should’ run you about 1.5 – 2% we’ll use best case scenario and say and go with 7.5% which equals $2,625.00.
I see a problem with that, don’t you? You only had $2,000.00 in profits to spare and now its going to cost you $2,625.00 to sell it. Who’s going to cover the difference? The buyer who you’re contractually bound to sell at $35,000.00? probably not.
We haven’t even discussed the processors fee. This would be the negotiator who you should have negotiating the deal for you. Don’t EVER rely on the seller negotiating the deal which in this particular case you are (I don’t think I mentioned that yet) which is one of the reasons why I said this deal will fail to begin with. You always negotiate your own deals!!!! ALWAYS!!! You’re already in the hole $625.00 because you let someone else control the deal, how much more do you want it to get?
I can go on and on but I think I would have made my point by now. Let me make this perfectly clear so there is no mis-understanding. I actually care about you, your success and the path in which you take to get there. If you don’t like that then by all means, unsubscribe, leave and never come back. If you ever have a question, comment or just want to talk with someone that has made more mistakes than I have good decisions then by all means, I’m really easy to get a hold of.