What happens when a buyer backs out? Real Estate in Real Life

What is going on, my brothers? How you doing?

Yo, what is going on, my man?

Uh, not much, man, just having a great day. Me and Benson, as you can see, we're in the same room. Good to see you, Benson, over there.

Nathan Payne, what is up?

Yeah, man, we're doing good. So today, guys, if you're popping in and you don't know what to expect out of today's call, today we're going to be going over what happens when a buyer backs out back out of a deal. If you've ever had this happen, whether you have a deal on the MLS and you're listing it with a real estate agent, or if you're selling it or wholesaling and you're wholesaling to a buyer and they back out, what do you do? What can you do about it? Is there anything you can do about it? We're going to talk about it. But before we go into answering that question and chatting a little bit more about what's going on in our deals, in our lives, let me introduce myself and we'll go through and introduce ourselves. My name is Nathan Payne. I've been in the business for about 6 years now And I've done several hundreds of real estate transactions, mainly focused on wholesaling, but, you know, gotten fix and flip as that's the natural progression. The purpose of me doing calls like this is I like sharing information. I like, you know, connecting with others because I know, you know, the more you give, the more you get. That's just how it is. That's how life is. So Nathan Payne, tell us who you are. Love it, man.

Guys, I am Nathan Payne. I've been wholesaling for about 5 years now. Um, some of you might know me for, um, locked up over 100 contracts in a single year. And a little while ago I did— you guys might have seen a 30-day challenge I did, uh, using, uh, my man Benson here's tool Privy, to where I went in totally brand new market, no contacts, no resources, nothing, and did a deal, a $20,000 deal in 30 days. And I only spent like 2 to 3 hours a day working on it. So that was pretty cool. But yeah, it's a little bit about me.

Impressive.

Awesome. Yeah, I am. I've been in the business for over 20 years, which makes me freaking old. And, uh, boy, I was feeling it driving back. I went to Montana last week and we drove back instead of flying, and I tell you, my knees were like aching. It's a 14-hour drive. It's just like those little things like make you realize like how old you are. It's like, why do my knees ache from sitting?

Are you, are you old enough to where you can like tell the weather by the aches in your knees? You're like, ah, my knee's aching, it's gonna rain tonight.

I think I am, but I don't think I'm perceptive enough to know the difference.

So you're still young, you're still young.

Yeah, I still got some time to build up that, that wise mentality around weather and my joints.

Dude, I feel like I'm getting older too, man. I, I'm starting to like notice flowers and trees now. I'm like, man, that's a beautiful tree.

Oh I better smell it. You never know if I won't be able to smell flowers ever again.

Yeah, dude, I've been living in my neighborhood and now I'm finally noticing there's like fruit trees. I'm like, man, that's an apple tree over there, but it's been there for like ever. So it's crazy, man. I'm getting older.

So like, who's this homeless guy just in our tree?

Like, I'm eating people's fruit, man. It's out there, why not? Well, if you guys are ready to rock, let's talk about what's going on. What happens when a buyer backs out of a real— man, I got to do that again. What happens when a buyer backs out of a real estate deal, guys? Let's dive right into it. I'll start with my experience. You got one?

Can I preface it with something? Because I think it might be important to even say, like, why might a buyer even back out? Like, what are some of the reasons why you might have to deal with a situation like that?

You want to kind of give us— you want to preface that? You want to go ahead?

Yeah, let's just get in like a couple of reasons that we know about, right? Like inspection issues, right? So they're going to do their due diligence. They're right, they're going to go in and take— do an inspection, make sure the house is sound, make sure that, you know, it is what they think it is. Does the— does the current condition of the property— is that reflected in the price, right? If they know it's a fixer-upper and the house is priced as retail and it's priced as like something that doesn't need any work, well then you might have an issue. You know, there's might— there's unexpected things, right? So it might look perfect from the outside, but then they go and they scope the sewer and they realize that the sewer line is busted, right?

Right.

Other reasons, right? There's all these contingencies that are built into the contract that are there for a reason, right? If they're there in the contract, that means that something happened in the past that caused them to amend that state contract. To plan for the next time that happens again. So other things that might happen is the loan falls out, like they, they lose their job, right? They think they're perfectly qualified, and then 30 days in, they lose their job or they get furloughed. Um, maybe they say they get— they get qualified for loan, and their lender is like, okay, cool, here's your lender letter. Um, you know, go go get a house under contract, and it turns out they don't make as much money as they told everybody they did. So now their debt-to-income ratio doesn't match, and then they can't get a loan.

Also, interest rates, right? Interest rates could increase where they're— like you're saying, they, uh, they think they can afford it and then they can't, right? Maybe it's got a little higher, the interest rates increase.

I had, um, there's actually a seller I was working with to where she had already vacated the property and she's looking to sell her house in Fort Worth, Texas. And she's moving to, I believe it was Georgia, and she's closing on a house like the next day. But she's like, oh, my, my, um, my lender's giving me a hard time. And what happened was she told them that she was renting out the other house, and so they used those numbers again, just what you were touching on, Benson, for a debt-to-income ratio. Well, when it came down to the wire, they're looking at the details, and you'll— long story short, she did— she didn't end up renting it out, and the lender's like, well, Whoa, whoa, whoa, whoa, this kind of throws a wrench into it. And so the day before closing, they end up kind of putting a pause on it, still following up with the seller. So, so the, the lending has been on pause for, I think, like over 2 weeks, and it sounds as if she's probably not going to be able to purchase the home because of it. And so, you know, there's, there's a million and one issues. And even for, for investors, if it's an investor buyer You know, um, sometimes it can be things that we don't necessarily see or would think, you know, sometimes it could be something happens with the crews that they have to do those projects, or, you know, the funding for the materials, or what, you know, there's, there's a lot of things that kind of come into play. And, uh, yeah, you never quite know.

Don't forget buyer's remorse, right? They might just not want it anymore, or they might see something else. So really, and the thing is, when someone cancels within their due diligence period They can say whatever, right? As long as they have the opportunity. So, so let me kind of explain the situation we just had, and then, um, then you can go, Benson, talk about yours. So I'm selling my house, we're moving to Canada, and we're on the market for a week and a half, and we get 4 offers, solid offers, and we go with, uh, one who was really excited, and she offered $625,000. The asking price was $649,000, uh, and we got asking price from someone else, but her, her offer said, I will pay, I'll do an escalation clause, right? I'll pay more up to $651,000. I'll beat anybody's offer by $2,000. So we had an offer at $649,000. So then, you know, she was willing to go up to $651,000 and pay $2,000 more. So we're like, well, we'll go with her. And she was paying cash. That's what she said. She sent proof of funds. So we're like, okay, she's really flexible when we needed to close. She said she's got cash and she has the escalation clause. What happens, she agreed, right? I think right after she agreed, she asked to see all the offers. She saw offers at $632,000, $649,000, and she looked deeper into the terms and what they were willing to do. We might have needed a rent back in case we need to sell and need some more time to move back. She was like, "Oh, this person said $649,000, but they want you to rent it back. I'm willing to let you guys close like when you guys want, so that's not fair. So she just kept on like looking at like all these little, little tiny things that had nothing to do with the purchase price, but she just felt like, uh, she was just trying to like not pay $651,000 pretty much, right?

Like, so it's like she was guided by her agent, or do you think she was an agent?

She wasn't—

she was an agent. Yeah.

Okay, so I personally, I think what happened was like she had cash, right? And then, um, you know, probably at $651,000 was like probably the top of her budget on what she had. So she probably was like, fine, I'll do it. I'll take it because I beat everybody. But then it was like eventually like, oh, you know what? I don't know. So unfortunate, but, uh, that's what happened. It's all good. We have those other offers. We're calling, uh, to see if they're still interested. We have the showing tomorrow. So it's just, that's— and she said she backed out because when she did an inspection, she's like, oh, there's too many projects to do. And we're like, there's no projects to do. You know, but, but, you know, that whatever excuse you want to use, you can use any excuse when within your due diligence period. Now what we had is we gave her 2 weeks. Now, now going forward, I'm going to say, hey, look, you don't need 2 weeks. We'll give you 7 days, we'll give you 5 days, because 2 weeks is a long time in my opinion. It felt like a long time to have all this happen and then, you know, back out. So, and she doesn't have to put down her earnest money or anything until after her due diligence. So pretty much 2 weeks is gone. We don't do anything. We're not really any further along. We have to start again at ground zero. And that's why I think a lot of people get annoyed with wholesalers if they roll like that, right? If they ask for a long due diligence period and they don't perform quickly, then this happens. This is how sellers feel. They're like, oh crap, I got to start over.

Do you think she was looking to wholesale it? Because it sounds like she might have been.

No, there's no way. She was going to live in it. There's no way you could wholesale this house. There's like no margin. That $651,000 is like the top.

So I'm just saying, wholesale it as a subject-to creative. I mean, if it cash flows, I mean, who knows? Maybe she was going to pad split it.

Maybe, dude. Maybe, you know, she, she could have probably been doing something like that. But whatever it is, whatever she's doing, it didn't work out. And, uh, and let— and the reason why, to answer the question, what happens when a buyer backs out? If a buyer backs out in America, I I know it's like different, probably in a different— probably in Canada, I think it's a little different. Or I know in New York, like, you can't really back out, apparently. Like, you gotta do New York.

Oh my gosh, man, you got the attorneys in there.

Yeah, it's got something. So, but anyway, if within your due diligence period, if you back out and you haven't like put down your— you get your— you get your earnest money back, right, if you did put it back down. But anyway, that's, that's really what happens. Um, And what do I got to do? I got to start all over again. It's all good. That's just what happens. Do you guys want to elaborate on that? Just to answer—

yeah, one thing I want to touch on, and guys, this is one thing to where I'm really passionate about this when it comes to wholesaling, because a lot of times, especially when I chat with— if I'm talking to an agent that's not that familiar with wholesalers, and some of you guys, if you've watched conversations when we call agents, you might have seen me do this to where, you know, um they'll be like, oh, are you a wholesaler? And I'm like, no. Now, do I work with assignments and, and double close? You know, sure, but I'm not one of those guys. Because a lot of people, you know, agents and people on the outside, when they hear the word wholesaler, if they kind of put you into this bucket of all these assumptions— and to be fair, guys, stereotypes are kind of stereotypes for a reason sometimes, right? And there's a better way of doing the business to where You know, that perfect example. I mean, thank God it's, it's not super urgent, you know, like in your scenario, Nate. But yeah, guys, a lot of the sellers and people that we work with, they, they do have real situations, you know. They've got stuff going on in life. They don't necessarily have the two. And also, you know, Nate, you, you're a much more experienced investor. You've done a ton of deals, you know. I mean, all three of us, we've kind of, we've We have the pain of experience to where we know, yeah, just because we got an accepted offer, we know it's not a done deal yet, right? Yeah, most other people don't think that way. They think, oh, we've got an offer, it's accepted, like it's a, it's a done deal. And they start kind of, uh, um, you know, counting the money before it's in their account, and they start making adjustments to their life banking on that person following through.

And so when that money hits your pocket, brother, It ain't done. Yeah. Even when the closing docs are signed, sometimes like you, you still have to fund, right? So there's issues that happen like with funding, even like when you have a hard money lender, sometimes they don't get the money there in time and everyone's like, what's going on? So yeah. Yeah.

And that's why specifically with wholesaling, it's, it's so important. I'm so passionate about have the conversation in a way to where you can be transparent with the seller or the agent about what you're doing. And guys, I promise you there is a way, like you, you can do it in a way that is one, still really effective, and two, you're able to provide the solution that's best for, uh, for that seller, but doing it a way that where everybody knows what's going on and, and they can make the decision for themselves as to, hey, if they're, they're kind of on board with that or not.

100%. 100%. Well, Benson, uh, I don't know what happened to my man over here. We can't see you, but, um, I know he had to, uh I can't see you. I don't know if something happened to your camera or—

whoa, can you hear me?

I can hear you. You can hear you, brother. You're the ghost.

That's weird.

Yeah, it's all good. Just maybe check your settings.

But okay, uh, probably a power outage from, from all the, all the lights you got on in that beautiful house in the background.

I don't know what, what could have happened here. One second.

That's Yeah, you're all good. Just check your settings and then go to camera.

I, I had a, you know, speaking of what to do when a buyer backs out. So, you know, there's kind of agent world, but there's also the wholesale world.

So I go through that scenario.

Nathan Payne, I had a deal one time to where I had a wholesale deal. We had the buyer lined up, we had EMD, everything. Closing was supposed to take place, uh, it was either Thursday or Friday, and out of nowhere the buyer gets cold feet, says she wants to back out. And we're like, it— no, like, it's— it is too— like, you can't. And for no— there was nothing wrong. It's not like something popped up, or— I mean, she walked the property, she saw it, like, and it was a house that needed a lot of work. Like, she knew exactly what she was getting into. She just like— and when I asked, I was like, well, what, like, why the sudden change in heart? Like, you love this deal, you know, when you first looked at it. What, why the sudden change in heart? And the answer, she was just like, I just, I don't know, I don't, I don't have it. I'm like, well, unfortunately it doesn't work that way. Well, and you guys would think, oh well, you got the paperwork, you got the EMD, she doesn't have a choice, it's a done deal. Guys, this is where experience it comes into play. So this was in— was it North or South Carolina? Um, it was an attorney state. And so the title company and closing attorney basically notify us, letting us know, hey, they're not putting the deal through. And she had already signed closing documents. Yeah, I forgot to make that important point. She signed closing documents that morning And like that afternoon or evening, she was like, I don't want to do this anymore.

That's, that's, that might have been—

I think that's what it was. She signed Thursday morning, and then on Friday she calls and she's like, I don't want to do this anymore. And so basically the, the title company and closing attorney are like, hey, so yeah, we're not, we're not going to fund this deal, we're not going to push it through. I'm like, what do you mean? Like, she signed, like, it's all there. And it was interesting. I was definitely a little agitated, but I kept my cool. And I had a conversation with the attorney and he explained. He was like, look, he was like, I totally understand where you're coming from. He was like, but if, if I were to fund this, me being the closing attorney, and if she were— and she doesn't want it to go through— he was like, well, if I still fund it even though she signed and everything, she could sue me. And I'm like, well, Mr. Attorney, um, couldn't we also sue you if you don't fund it? And I asked nicely, but it was a genuine question. And he's like, 100%. He was like, but he was like, the, the way the law is written, when I'm representing a client and it's a situation like this and we fund it He was like, yes, you could sue me, but the worst thing that happens is, you know, it's a lawsuit and I lose money. He was like, with her, because I'm representing her, he was like, I could lose my license. And he's like, that's happened to people before. And he's like, I'm really sorry. He's like, but I, I just, I can't risk my whole livelihood on it. And I really appreciated him explaining that, you know. It was still a little frustrating, but I wasn't upset with him because like I get it, you know, you got to kind of think ahead. Um, now we did get the EMD, but the deal didn't go through. Um, so it was one of those things to where—

how did that EMD get released to you? Because I'm curious, I've had a similar situation, but EMD did not— was not easy to get. What— how did that happen?

Uh, it was with the, the title company or closing attorney, and they just gave it to you? Yeah, because like he knew, because I, I all said on that, well, we're 100% getting the EMD. He's like, yeah, 100%.

Typically in that situation, go to the seller, not the wholesaler in the middle. I'm surprised you got it.

Well, I've had a situation like that too, where it went to— so this is what happened. Same thing, buyer backed out. It was right before COVID everyone started getting scared, you know, in the deal. She's like, oh, I don't want to close on it. So she had $5,000 down at the title company. Thing with that in Utah, I don't know if it's the same wherever you did the deal, but the title company is like, they're like a middleman, right? They don't take anyone's side. They're like, "Hey, we're not going to be able to release this money until, unless both sides agree that it's getting released." Obviously, we call the seller, the buyer that backed out, and she's like, "Yeah, no, I want my money back." We waited 2 years and it was just sitting there, $5,000. Eventually we're like, uh, we're just like, hey, will you split it so we can like get at least half of it? And she's like, okay. So in my— the title company that we use here in Utah, you have to— even if your EMD is down at the title company, you have to— the buyer has to agree to even release it or it'll just sit there. So, um, unless you have something written in your contract that says, hey, I was gonna say, if there's a—

yeah, you could, you could write it into the contract. It doesn't need to be mutually agreed.

Yeah, and I think that might have been the issue with the assignment because it was an assignment that we used to assign the contract. And I don't think the assignment said anything of like, hey, EMD gets released without the buyer's, you know, approval.

But anyway, a really important lesson to take from this, guys, is, is when you're working with a seller or a buyer or, you know, whoever, the moment they say yes and they do sign you know, the, the contract with you, or the buyer says yes and he does deposit EMD, especially in real estate, guys, that, that this— the selling doesn't stop there. You have to continue to sell that person, you know, that seller and that buyer. You need to continue to sell them from contract to close because you need everybody to be cooperating and on board. Because just because you have it on paper, again, as you've kind of heard from our experiences, you know, that's not necessarily the end-all be-all. And if we're able to keep everybody on board, you know, moving forward, cooperating, excited about the deal, you know, and positive, helps everything go smooth.

Yeah, I, I'm assuming you've never done a deal with that lady before. Was that your first time?

Yeah, first time.

So, so one way to overcome this is work with people you trust, right? Because if you work with someone, a buyer that you've done several deals, they'll— if they don't feel good about it, like, they wouldn't have gotten you in that position, right? Like, a lot of the ones that I work with, like, if they don't feel good about it, I like— we know, right? It's not like, hey, the day of close, they're gonna be like, yeah, man, I've just— I've been lying to you. I just haven't felt good this whole time. So working with relationships is really key to feeling confident going all the way through. But yeah, just like you said, Nathan, like, you never know. And that's why, like, when this happened, I was like, we'll see. And everyone's like, well, when are you moving? And I'm like, well, the due diligence isn't over yet, so I don't— we'll see. And I think just having that expectation, everybody that gets into real estate, whether it's MLS, you list it, or with a cash offer, just don't get too excited until you— it closes.

Yeah. Oh yeah, it can die all along the way. Even after due diligence, it can die. Yeah, right. Due diligence is when it has a higher chance of dying because of inspection issues. But then you get into, okay, now it's not the property's fault if it dies, it's the buyer's fault. Funding is almost always the issue. And one reason what we didn't mention earlier was the appraisal. So the appraisal is a really big issue that a lot— and it's connected to the loan, it's connected to funding, but it's a different issue than the borrower qualifying. It's that the house doesn't qualify. Yeah, so on values, right? So a listing agent who doesn't know better can go and list a property for sale, and you can find a buyer who wants to pay, let's say, $650,000 for a house. You list it for $650,000, they, they say they'll pay all— they'll, they'll buy it, but they're getting a loan, right? And then they come in and there's a bidding war. They're like, oh, we want this house, we love it. So they keep bidding it up, bidding up. Next thing you know, it's $680,000. Is they won the bid, they're all excited, they go get a loan, the appraisal comes in at $648,000. So they're like, oh man, we got to bring $32,000 to the table, right? That's what they'd have to do. And they're like, well, we don't—

on top, on top of their down payment that they already have to provide to the bank, on top.

And right, and so in that price range, I mean, you're probably not doing FHA, so it's going to be at least 5%. And then now they have to bring another $32,000. They're like, what the heck's going on here, right? So that is a really, really big reason why deals will fall out. But let's get to the point of like, what do you do in that— in those situations, right? So you still have a chance to save it, right? Just like Vali was saying, like, you can still negotiate, you're still selling along the way even if like nothing's going wrong. Nathan Payne was basically saying you're selling even if nothing's wrong, just to keep everybody moving in the same direction. Yeah, something's wrong, like what happened to you, right? There's a chance you could have lowered the price, right?

Right. If, if I didn't have the other 4 offers or 3 offers that were there behind that set— this is what happened when we had said signed with her, the other 3 were like, why didn't you tell us about highest and best? We would have offered more. So we're at a position where like, okay, maybe we could still get more, and I'm not worried. We're not in any rush. So, but if you don't have backup offers already and you're like, that was the only person, you can obviously call them and say, hey, you know, let's get down, let's get down to business. Like, what really happened? What was it? Was it—

yeah, what's the real issue?

What's the real issue here? And you can save it. So, but mainly, usually I would say it's price. Usually when people don't feel good about making a purchase, I would say price or just restructuring the deal in some way.

So I closed my deal. I'm not— sorry, Nathan, I'm not trying to like—

you got me, bro, but I closed last week on my deal.

Yeah. And, um, even the day of closing, we had to restructure the deal because the lender was only willing to give a portion of the money that we had agreed upon back to the buyer to use for their seller concessions. And so we had to actually— we had to amend the contract like an hour before closing.

Oh man.

Now it actually ended up working out in my favor because the lender said, we can't allow you to give this more money than this amount. It was some ratio back to them, and I was— it made me like $300. I was like, heck yeah, this is a good day.

That's a couple public subs right there.

Yeah, but going back to And I think the last time we had the podcast, we were, we were during the inspection and we were negotiating seller concessions to help them fix some of the things that they were concerned about that came from the inspection. And it was the sewer and it was some other repairs on the house because it was built in like 1890. So tuckpointing window things, you know, just like weird stuff. And so we agreed upon a blended, um, just seller concession and money back to them to pay for closing costs. So it— and that did $10,000 less than what the agreed-upon contract was to start.

Okay.

But to get that to closing, that was— I was like, hell yeah.

Yeah, right.

And my alternative too, and it was a little stressful for a while because they're like, okay, go get contractor bids on fixing the sewer. Go get contractor bids on tuckpointing and fixing all these things. And I was like having to talk to like 7 different contractors, and I'm like, let's just propose a $10K reduction.

Yeah.

And they handle it all. And my agent was like, no, they won't do it. And I'm like, let's propose it.

Yeah, right.

And sometimes, you know, the agent is the authority in the transaction, but sometimes they're not. And I'm like, let's just do this. And they ended up accepting it, and we ended up closing. Everything's solid, and it ended up working out. But really, it's about price, right? So if you got a buyer who's trying to back out, figure out what the, what the core or the root problem is of why they want to back out. And maybe they just need money back for closing costs, maybe they need money back to fix things, or maybe you just need to reduce the price overall, the contract price.

How does that work, money back for closing costs? How did you structure— I don't think I've heard much about that.

Yeah, so you just amend it, right? So there's going to be, uh, closing costs with title company, um, you know, lender costs like origination. There's all these little things that can— that are costs that the buyer typically has to pay for, right, in addition to their down payment. And so it's pretty standard for them to come in and say, okay, well, here's the price we want but we want, um, you know, 1% seller concession to pay for closing costs.

Got it.

So they don't have to come out of pocket from it. Essentially, it's, it's a seller-funded— it's seller-funded.

Okay, so you're out of what you price the house. Okay, from the price. Okay, so out of what you would get, you're, you're applying it to some of what they, uh, you know, what they would have to pay.

Okay.

Yeah. Yes, you're just helping them so they don't have to come out of pocket or go, you know, get money from somebody else.

That makes sense. Okay.

Many, many years ago, it was like, it was standard, like every single offer had seller concessions in it for closing costs.

Yeah. And then it got crazy, right, with, with COVID and people just kind of threw that stuff out. I'm assuming that stuff's coming back more, more and more, like concession.

I've been seeing it. Yeah. In this last transaction, we had to do it.

Cool, cool.

Um, but yeah, I think you're right as far as of what value you were saying is like just selling all the way up until the day of closing, right? Like, how many times have you closed a wholesale deal and you're like, you're trying to get the seller to the closing table?

Yeah, like seller, buyer.

Yeah, buyer, other people. Like, they just don't want to show.

And it's beautiful when you don't have to do anything.

Guys, if, um, if you have done a deal, you know, a wholesale deal, I would imagine it probably felt like, oh, like a nail-biter all the way, you know, from start to finish. And let me just say, they're all like— every single one of them. And that's why, you know, you'll, you'll learn to adjust and, and, you know, you just kind of grow a thick skin to it. Um, and you start to understand like that's just how the game is. But with that being said, that's what every deal is like, you know. It's, you know, you gotta kind of put in everything that you got, and from start to finish you got to be on point. And, you know, that's where I feel like I see a lot of people go wrong because they'll do a few things really well, but sometimes I feel like there's this kind of perspective out there to where, oh, like, I just need to get the contract and I'm golden. Or, oh, if I get a contract and I find a buyer that says yes and get EMD, I'm golden.

And it's like counting their money.

They're like, oh, what kind of jet ski am I gonna buy?

Yeah, well, I will say that the transactions do get smoother, or really smooth in my experience, with a great title company escrow officer. And if you have relationships with the buyer, because then all you got to do is focus on the seller. And if you've had a good relationship with the seller where there's trust involved and they understand what's going on, you've set the right expectations, it can be extremely smooth. I know with GT Title, who we use in Utah, and the buyers we use, it's usually— there's no problem. So I think there are a lot of issues and can be more issues if you don't really know who you're working with, like all around. Right? You don't— there's not a lot of— because a lot of this is trust, right? You got to feel good about what you're doing. You got to take action. So anyway, guys, we've crushed— I feel like we crushed the topic of what happens when a buyer backs out, talking about what happens with buyers on market, off market, listed, uh, cash buyers. So I think we're good. I think we're good.

Can I mention one last thing, man? That I think this is important too, as far as the transaction. There's this thing called transaction coordinators. That you can pay a small fee for that is an absolute lifesaver, and they're well worth their weight in gold if you can find the right ones. Yeah, transaction coordinators can plan everything out perfectly, and they can anticipate all the things that'll go wrong and plan ahead and make sure they're asking for the right documents, um, in advance. Because knowing that you're on a timeline and all these dates and deadlines have to happen in in succession, right? Like, you can't ask for an appraisal until the inspection is completed, right? Or you shouldn't, at least, right? Because you might pay for an appraisal that you don't need. So like, they, they know the transaction in their state, and they, they can anticipate everything that can go wrong, and they can look for things that maybe others don't see and, um, look for blind spots, right? Because, you know, if you're a wholesaler, you're thinking about the next deal. Like you're already moving on and looking for the—

you're—

so you're lead to win lead gen, you're looking for buyers, you're trying to offer the next deal, and you still got this other transaction that's not closed yet that if you don't pay attention to every little thing, like just missing a small thing could make— could cause the whole deal to blow up, right? And it would be your fault. Now look into transaction coordinators.

Exactly. Now, I, I— Benson, I'll be real, I've never used a transaction coordinator ever, um, because the title companies that I use are investor friendly and they almost— they almost do— they do that job, right? So I think it just depends again who you're closing with. If you go with investor-friendly title companies that are really well known for taking people through that process, they pretty much do that job. But if you're new, again, like you're saying, if you're new and you don't know what title companies do that, yes, I would say transaction coordinator is super helpful. But if you luck out like I have where my escrow officer does that included, It's freaking dope.

Yeah, yeah, so it is. But honestly, it can happen the other way too. Like, some of the wholesalers that I know, they're doing the most volume, are the ones that have shifted to using transaction coordinators. Like, they didn't do it early on, they're doing it at the end or after they've become seasoned. Because it's one of those things like, where's your money best spent, right? Like, your time.

Also volume, right? If you have a lot of volume, yeah, I would say 100%, right? Like, I was never doing it, you know, more than like 10 deals a month. And, uh, but if you're doing tons and tons of volume, yeah, don't even mess with trying to deal with the transaction coordination at that point. Get someone to do it. Oh yeah, that's amazing. Okay, well guys, that's it, man. I feel pretty good. If you guys— you guys got anything else you want to add before we wrap up, man?

I think that's— I think that's good. I think we— think we got it all.

All right guys, well, we'll see you next week where we dive into another— answering another question. If you guys have any questions for us, you guys want us to review anything, just leave it in the comments section. Like, subscribe, hit the bell icon so you can get this content. And check out painlessflipping.com if you guys need help with wholesaling. If you feel overwhelmed and you don't know where to go, check out our site. We got you covered. And then Benson, obviously you're the Privy guy. You want to leave us with why we should check out Privy?

Yeah, yeah, you guys, Privy is— we're just constantly adding in new markets. We just launched several new ones this last month, last 30 days. We got a really cool release, coming out here soon, um, called Fast Match. So it's a, it's a brand new approach to reverse engineering properties and deals that are happening in your market and then using algorithms to recreate those automatically. So keep an eye out for that.

That sounds cool. We're gonna have to do a call on that. Oh, sounds high tech. That sounds like AI right there.

Oh yeah.

All right guys, see you later everybody. See ya.