This list is important for real estate investing newbies to know because when I was a newbie
wholesaler I tended to feel grateful that someone would even talk to me
about buying one of my properties. I let my guard down and didn't weed
out the bad buyers. It wasn't fun! So here are a few quick tips for
weeding out the bad buyers.
1.) Bad buyers won't put
down a reasonable deposit. When
I'm buying a property, I have no problem putting down $3,000. Some 'buyers' will offer $200, $500, or even nothing as a
deposit. The more serious
investor is the one who will put down a few thousand. There is a direct
correlation between the deposit amount and the flake out rate.
2.) Bad buyers don't
return phone calls. In real estate investing, a
person who won't return a phone call isn't worth dealing with. If
I've wholesaled a property and don't hear from the person, something is
ALWAYS wrong. Therefore, I
have a clause in my contracts that states people need to maintain
contact with me or I can cancel their assignment.
3.) Bad buyers have
burned other people. This
seems obvious, but I've broken this rule before and it wasn't fun.
4.) Bad buyers won't use
your contract and insist on using theirs.
When someone needs to use their paperwork, there is a reason for
it. I've had people try and
sneak into their paperwork things we didn't agree to verbally,
especially when wholesaling a property. These people all lost my deal
and any future business.
5.) Bad buyers won't
verify their proof of funds. This
has been said a bunch on times on the newsgroup by Steve, but it can't
be said enough. Verify the buyer’s funds. This is a business and you
aren't going to hurt anyone's feelings by asking for them to fax a
simple document to you. It
seems whenever I was lazy and didn't do my homework, I lost money.
Steve Cook is a real estate investor from Baltimore, Maryland. He is the owner of flippinghomes.com. For more information on Steve or his materials, click here
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