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Hi everybody!
I hope you all are enjoying your 4th of July weekend!
Is anyone else wondering where in the bleep the first 6 months of this year went? Holy crap time sure is flying by….
Anywho, I just recorded another Reader Mail video for you all to enjoy once you get back from your 4th of July festivities. In this installment, I answer a question from John Mayer (the singer) about what happens when your end buyer bails on a deal at the last minute….
I was on glass of wine #3 (it’s a holiday!) when I made the video, so if I wasn’t making sense and you need clarification about anything, let me know…
Happy 4th of July guys!
10-4, over and out.
P.S.
If you like my videos and haven’t done so already, you can subscribe to my YouTube channel by going here, then clicking on the yellow “subscribe” button on top of the video!
On July 04, 2010 at 5:36am, Erby said...
Wow Steph, what were you drinking? Heard a lot of slurrrring in your speech during reader mail. JK
Option #4 if your buyer backs out of a deal, drive around there neighborhood and stalk them until they change there mind. 
Have a safe weekend Steph!!!!!!!!!!!!
.-= Erby´s last blog ..3-1 Cash Flow Investment Property 45-000 =-.
On July 04, 2010 at 9:04am, Stephani said...
Dang, I totally forgot to add #4 to the video! Stalking/harassment is always an effective strategy for selling properties.
Happy 4th Erby- hope you have a good one!
On July 04, 2010 at 8:21am, Tim Mahoney said...
Happy 4th to you, too Steph!
So if your buyer backs out do you get to keep their $2000 deposit?
On July 04, 2010 at 9:09am, Stephani said...
Hey Tim,
Yes- that is correct. If they bail on the deal, you keep their deposit. So, in the case of an REO, if you give the bank 1k and your buyer gives you 2k and doesn’t close- you end up 1k ahead.
Enjoy your 4th!
On July 04, 2010 at 5:30pm, Jusitn McClelland said...
Hey Steph, doesn’t the seller have the option of a “Specific Performance” suit if you don’t close? On the standard Realtor contracts that I’ve seen, that clause is included. However, unless the property is a million-dollar one it’s probably not feasible, right?
Drop some knowledge on me.
On July 04, 2010 at 5:46pm, Stephani said...
Hey Justin,
I’ve not seen that clause in any of the contracts I use. Even so, they still can’t force you to close on the property, especially if you don’t have the funds available to do so.
In my contract to purchase it states that the seller’s sole remedy for non-performance is limited to the EMD.
If you have concerns about it, I’d definitely run them by an attorney in your area.
Hope you’re having a good 4th!
On July 04, 2010 at 10:51pm, Joreen Lono said...
Happy 4th of July Steph! I bought your book and I found it to be very helpful. Have fun and don’t get to wasted! Lol.
Aloha,
Joreen (Rena)
On July 05, 2010 at 6:36am, Stephani said...
Hi Joreen,
Glad you are liking the book- let me know if you have any questions about it…
Hope you are having a fabulous holiday!
On July 05, 2010 at 6:23am, Scottie said...
Hey Steph..
Happy Holiday..I’ve subscribed to you newletter(GREAT INFO!)..I have a question regarding when you find your end buyer. Once you found a end buyer and have reo under contract when do you write up the NEW contract with the end buyer? Or do you just have them close on the same ANTICIPATED closing date with the bank?
Scottie(Los Angeles0
On July 05, 2010 at 6:31am, Stephani said...
Hi Scottie,
You write up the contract with the end buyer as soon as they say they want the deal. You put the closing date the same as it is on the contract with the bank. Always make sure to read the bank’s addenda to see if they have an automatic extension built in- many of them do. If so, you’ll want to include that extension in your contract with the end buyer, that way if the bank isn’t ready to close on the original closing date and the contract is extended, your contract with your end buyer will be extended as well.
Make sense?
On July 05, 2010 at 6:29am, Craig Fuhr said...
Happy 4th, Steph. Bob Norton and I are gone be in West Palm next week. How far is that from you?
.-= Craig Fuhr´s last blog ..Getting My Zen On -amp Contractor Lessons =-.
On July 05, 2010 at 6:34am, Stephani said...
What’s up Craig?
Yeah, I heard Bob was going to be coming to FL for the boot camp- didn’t know you were going to be here as well. I’m about 4 hours away (I think). Mike Henninger mentioned something about it to me, too and I was thinking of driving down maybe.
What days will you be here?
On July 05, 2010 at 9:47am, George said...
Hi Steph,
I have been following your blog for about a year now, and I have to say that you are the reason that I decided to move forward with trying my hand at wholesaling. I am a Broker up her in Birmingham, Alabama, and I have written several contracts, but, have yet to get one to close. My last deal’s end buyer backed out at the last minute and left me hanging on an REO that I got the seller to accept half of list price! Can you believe it? Well, my new wife is telling me to not give up, and keep pushing, which I’m doing, so we’ll see what happens.
Oh, @Justin, specific performance is a legal recourse for a buyer to compel a seller to complete a sale. The forfeiture of the earnest money is the seller’s legal recousre for breach. * I am not an attorney, so don’t listen to me* (-;
On July 05, 2010 at 3:15pm, Stephani said...
Hi George,
I would second what your wife says- keep at it! The majority of people never even start making offers, so you’re already ahead of the game in that dept. It really is a numbers game- the more offers you make the more deals you’re going to get. You just have to get in the habit of making offers daily and you will eventually start closing deals…
You are on the right track- you just have to stay persistent with your efforts.
Keep on truckin.
On July 05, 2010 at 9:49am, George said...
By the way, I want to start an investing blog, can you tell me how you got yours started, who hosts it, and how do you add videos to your blog? Thanks, George
On July 05, 2010 at 3:20pm, Stephani said...
I started my blog on blogger. It’s really easy to set up, and it’s free. Go to blogger.com and it will walk you through the steps to set it up. After I was on blogger for a few years I hired someone to design this site for me and bought my own domain name. Blue Host is my hosting company, but I’m getting ready to switch over to a different one because they suck.
I would stick with Blogger or WordPress if you’re just getting started.
As far as the videos go, you can upload them to YouTube and then just embed them into your blog post. It’s really easy, but if you can’t figure it out just do a search on YouTube– there are a ton of tutorials on there that will walk you through it.
Hope that helps!
On July 05, 2010 at 2:51pm, Karen said...
Great info! That’s a scary thing but if you’ve got the EMD, at least you’re covered somewhat.
I had another question for you. I went to an REI meeting last Monday led by Corey Donahue (you know him, right?) and he brought up a great question. All these foreclosed properties are going through auction and back to banks but then never showing up in the MLS. Where are they going?? I had heard that the auctions at the courthouse were being increased, and yet the inventory in the MLS of REO’s seems really low. Corey said he’s been monitoring them, and they just never end up on the MLS, even months later. No one at the meeting seemed to know anything. What do you think? Any insights?
On July 05, 2010 at 3:26pm, Stephani said...
Hi Karen,
That’s cool that you went to Corey’s meeting- he’s a great guy…
I’m stumped, too, with regard to where all of the inventory is going. Unless all of it is being sold in bulk packages, it’s going to have to hit the market sooner or later. Right? Unless they are just going to bulldoze all of it, which wouldn’t really surprise me.
On July 05, 2010 at 5:16pm, George said...
Thanks, Steph! Do you mind sharing who you plan to use for your hosting next? I am ready to really kick things up several levels, and I trust your judgement. You may email me, if you don’t want to post it publicly at birminghambroker@gmail.com.
By the way, you are right, a huge chunk of the REO market is beig sold in bulk. In fact, I am working on building my infrastructure to market to asset managers to handle bulk listings. That is why so much of the inventory never hits the MLS, in my opinion.
Thanks again for all of your help!
On July 06, 2010 at 6:16am, Stephani said...
Hi George,
I think I’m going to go with Hostgator.
If you use Blogger or Wordpress, though, you don’t have to worry about using a hosting company- they host it for you.
Take care,
Steph
On July 06, 2010 at 11:22am, George said...
Ok, great! Thanks for the info!
On July 06, 2010 at 11:12am, George said...
you can put you your finance cause — the offer is contingent up a preapproved 3rd party private funding
On July 06, 2010 at 11:24am, George said...
Thanks, I like that. I will try that verbiage and see what happens.
On July 06, 2010 at 3:17pm, Esi said...
What a great interview, I really enjoyed this call guys. $600/month cashflow is great, You go girl! I know what you mean by the yellow letter to possible sellers; Lots of calls, but most are unmotivated, which is a lot of time wasted. Keep it going and i’m looking forward to many more success stories.
.-= Esi´s last blog ..Q -amp A- Closing- Birthday =-.
On July 06, 2010 at 6:42pm, jason said...
Hi step,
Happy 4th of July1! I had a question. Is it possible to re-negotiate a deal if you already made an initial offer on the property? for example: I have a deal at a 100k but my buyer needs it for 91k because of hidden mold issues. Can I RE-negotiate with the bank before opening escrow to get it at 88k by showing a serious rehab issue with the property?