Deal Talk/Breakdown · Don't Buy Real Estate

Deal Talk/Breakdown

Just closed and funded on a JV Deal that I got from DBR on the spreadsheet. S/O to Josh and Gilbert and all of the Cult! We got plugged in and were working with the acquisition wholesaler who told us we were fine to put our fee on top. They were contracted to seller at 165, so we said that we would profit anything over 177 and would cover closing costs...

We had buyer ready and waiting and knew where they could close and it would be all cash at 185k. Buyer actually ends up telling us they can come up higher up to 190k which offends the acquisition group...I found out after viewing the HUD that this is because we would have ended up netting more than their side which was understandable so I offered to adjust the structure to make it where everything was equal...Ultimately, we had to agree to pay an additional 4-5k off of our fee to cover remaining lien on solar panels in addition to closing costs. This deal ended up getting closed and all sides were profitable.

Lessons Learned:

Be willing to negotiate on any and all deals.
Be honest and firm. I had a lengthy discussion with the acquisition representative that had previously agreed verbally to equally split closing costs and the cost of the liens with me but after viewing the HUD they refused to budge. I made it clear that I was willing to compromise but did want them to acknowledge that they had moved the goal posts and shifted the terms of the agreement that we had agreed to verbally.
Be flexible. See above...I swallowed my pride and allow myself to be "beat" in this negotiation because ultimately what was important was getting the deal done, showing my value, and making sure that myself, my partner, and the acquisition group all got paid.

Let's do some more deals babyyyyyy. HORRRRRNNNNNNNNNNNNNNNN 📯

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