How Being Transparent Won Us a 3-Year Novation Deal | But Was It Worth The Wait :(

So I just spent about 2 years trying to get a deal across the finish line that's finally going to happen. So right now we got a deal that's about to close, and what happened was we got this deal about 2 years ago from pay-per-click, and it was in Del Rio, Texas. We had it under contract, we were ready to go and assign it for $15,000, but what ended up happening was that the seller had to go through probate and there's a lot of issues because the guy that passed away, he didn't do the paperwork correctly or whatever you want to say. He tried to leave it to his family, but there's a lot of issues. So it's been about 2 years of trying to take this thing to the finish line. And finally we got something, but the problem now is that the real estate market since then has gone down a little bit and our fee of what we believe we're going to make it's not as much as we thought. And I've had to wait 2 years, and I'm actually pretty much doing this deal after all the work I've done for free. But hey, this is a call right here that I have with the title company just to show you how to navigate this title company and how to work with them. The way we had it set up was the title company was going to actually assign this deal, but you know, there was some— we had an agent involved and there was some miscommunication. So now I have to call the agent that is bringing the buyer and negotiate the fees. It's kind of a mess, but anyway, I just want to show you guys that it's not always rainbows and sunshine when you're doing deals. And this one that took 2 years, well, let's see how it goes when I talk to this title company and see if you can learn how to navigate this situation from my experience.

So I started to email the agent for the buyer and I was like, hold on. I was like, before I send this email, let me look at the contract.

Okay.

So on the contract that they signed, I guess from Utah Home Acquisitions to the buyer, it shows that the seller's paying for the policy, the, the, the closing costs, or what policy for the title insurance.

Okay.

And there's nothing in there that, you know, buyer will pay all of seller's closing costs. So I know You know, again, last night I received an email from the buyer's agent just saying like, hey, why are there additional charges?

Right.

So I kind of wanted to get with you first before I respond to him because I don't know, you know, what conversation was had with him, if any.

Yeah, I'm assuming no. Well, so I've been kind of out of this because I had my partner was on the phone, like did most of this, but he probably had the agent do most of the conversation. So I'm sure our agent knows, and she probably didn't set it up the way like it should have been set up through a, you know, I don't know, like again, I'm just coming in late. So yeah, if that's what you're saying and they're like, nah, we're not going to pay that, I guess that takes away a little bit more what we're going to make. Again, you know.

Yeah, and again, I mean, I don't know, you know, if you want me just to do it like do a credit, or you want me to tell him like, hey, you know, maybe you need to talk with whatever to see if y'all can, you know, to the agent or I don't know, Corey or yourself, to see if maybe y'all can work something out. I mean, it's just, I don't want to tell him to contact y'all and you're kind of, I mean, it's kind of like, nope, just, you know what I mean?

Yeah, right, right. So what are the extra costs that they're saying that they shouldn't? Is it all the $2,000 or what was it?

Yeah, it's like close to $2,000, I think.

So they're saying like, hey, we don't want to pay that.

Yeah, it's going to be the title policy recording fees because I know on, again, y'all's contract with Victoria to Utah, y'all were covering all of, you know, seller's closing costs, taxes. And I think the only other thing they were covering was, you know, mobile notary fees.

And yeah, our contract, I don't think we take care of taxes. I think it takes care of closing costs, but I don't— I think the taxes are prorated.

Yeah, so again, I mean, the taxes are prorated and whatever's past due, that's all on the seller's side, right? Um, but I, again, I don't, I don't want to tell him like, oh, you need to contact them.

Yeah, yeah, I'm totally cool to talk with them. I just got to figure out like the plan of action of what we're going to do. So it's, uh, so it's an extra $2,000, about $2,000 that we would have to eat.

Yeah.

And, um, so that would bring what we're making from, um, down by $2K unless I can talk to them and get them to pay or call the seller and be like, hey, look, this is getting a little bit more pricier than we thought.

Yeah.

So those are the options. But they're like, nah, we're not going to do that. Is that what you're saying?

Yeah. And again, I don't know if it's more so the buyers. I know it's their agent. I know I've talked to the buyers. I've talked to him once. And I know the agent's like, hey, we want to close. And I'm like, yep, we're getting there. I'm like—

Yes, yes. I totally understand that.

And again, you know, I know I had let the sellers know. I had put a few of them on notice that I could email. But I also don't want to start calling them to give people's until it's all worked out.

So is that, is that the only thing that's pretty much holding us up is, is this $2K?

Pretty much at this point. I mean, but again, I don't know if that's something you want to negotiate.

I'm always down to negotiate. Yeah, that's, yeah, it's kind of the issue like when there's so many people involved, right? It's like you don't really know what's— you can't check everything. So yeah, thanks for being so cool about this. So I, I guess my options are talk with the buyer and just hash it out or call Victoria and just tell her kind of what's going on and see what she's thinking. Yeah.

I mean, because either way I have to sign.

We do have to do an assignment with the buyer and we still have to do a new REPC, you know, or no, an addendum with Victoria, right? Yeah. Mm-hmm.

Okay. And that would just be extending the closing date and just adding everybody, you know, that's going to sign as a seller, just as sellers on the contract. Okay, can—

do you mind texting or emailing me like everything, like those two things I need to do and the actual, like, what the cost— I know it's about $2,000, but if you could tell me the cost and then what I need to get them signed, and then I'll take care of calling the buyer. I'll call Victoria. We'll just— we'll figure it out. And could you do that for me?

Yeah, yeah, give me, um, just a few because I got to send one over and then I'll work on that one.

Okay, and then if I can get this all done today or tomorrow, when would the close look like? When would we be closing? Because they'd all be like, okay, if we do this, when, when can we when we get this thing done?

So that's the thing. Since there is so many sellers, I know everybody's schedule is crazy. I know Victoria was off this week, so she's— her and her husband are able to come in. But again, her sister-in-law lives like in my area. Got it. As long as I can run over there and then run back, we should be good.

Yeah, I'm not in any rush. It's— I'm not in a huge rush. It's just been 2— it's been 2 years already. So for me, it's like, you know, just to give them a timeline, right? Because they They're going to—

yeah. And the only other issue is I think there's 3 family members in Del Rio, one in California, and one in like Missouri or somewhere.

I love it. Wonderful. Before we send a note, you know what's interesting? Isn't there like just like 20— at the moment there's like $21,000 that they would all split. This is right, like this is barely worth anyone's time right now.

You know what, to be honest, they're not even getting that much. No. I think after it all, like, everybody has a set out percentage. Oh gosh. Um, but yeah, I think it literally comes down to like everybody's getting a few thousand in that.

You know what? Yeah, so I'm gonna call the buyer. I'm not gonna try and renegotiate with them just because like, look, there's like nothing left. I just wanted to recoup my costs for doing this for 2 years. And, um, so Can you also give me the buyer's info, or would I have to deal through the agent?

To be honest, it's probably best to go through the agent. Yeah, at least just let him know, like, hey, do you mind if I contact your buyer and just kind of tell them what's going on? Only because I know this agent in particular, I've never worked with him before, but he seems like he's pretty, like, he wants to be on top of it. Okay.

Yeah, so let's do this. Just send me the agent's information. I'll call him, I'll explain the situation. And, um, you know, if they can, if they can split it, if they can do it all, you know, I'll go, I'll go the route of, hey, can you just do it? You know, that no one's making any money. And then, um, if not, we'll split it and then, you know, we'll go from there. Okay.

Yeah, give me just a few and I'll get that, um, agent's info. I'll let you know the cost for everything extra and then what else is needed as far as addendums and the assignment and kind of go— I'll shoot it all over in an email to you. Beautiful.

Thank you.

You're welcome.

All right, bye. So hey, if you thought this content was helpful, follow me for more information so I can show you the live, the real deal, the rawness of doing deals nationwide, wholesaling, fix and flipping. Let me show you how to do it. Follow me for more info.