Ok.. so you may have read in a previous blog or two that I was working with an investor I wasn't exactly confident in. His plan seemed a bit squirrely but he reassured me time and time again that he was good for it. Well, after working with him for about two months, writing a dozen contracts and not having one contract go through, I decided it was time to pull a Trump - You're FIRED !!!
I didn't fire him for the mere fact that nothing had gone through; there's a lot more to it.
1. He's an investor but he doesn't have his own money; he's a third party who finds homes for an investor via an agent (me), then has the other investor pay, in cash, for the home;
2. He has a company who will write a pre-approval letter for him and "can" finance the transaction if another investor isn't found; so when you submit the offer it has a POF (proof of funds) letter from one company, but when it's time to close, he tries to submit a different letter from a different investor basically stating "he's good for it," because in Real Estate EVERYTHING is on one's word, right!?? (I JUST found this out)
3. He signs the offers as, well, let's just say, "ABC ENT and/or Assignees," which means he tries to "assign" the contract to someone else so that his company can back out and have another, new person sign at closing (also JUST found out). I did, however, find out real quick sellers don't like "and/or..." and banks don't allow this, so on any REO or short sale transaction, I got him to drop the "and/or...."
4. We finally get into the option period after writing a dozen or so contracts (the offers were either too low, out bid, or, in 1 circumstance, the investor wouldn't move from "Option" to "Pending" because the home wasn't vacant; crazy, I know!), and just as the bank is about to approve the loan, they ask for a written agreement between the company who wrote his POF letter and himself, and instead he supplies a new POF letter from a Real Estate Company stating they will "finance" the transaction as long as it satisfies a laundry list of requirements. Finance..!?? We wrote this offer as "Cash!" Not to mention the letter not only looked like it was typed in Word, it was not even signed by anyone. AND, to add a little twist, my Outlook is connected to Facebook so at the bottom of each email, it gives me the other person's status. Well.. his read this:
"I have a deal but need a better POF to secure it. Can anyone help? Thank bank wants to close quick. DOM avg 23. Over $35 in profit in 6 weeks."
WHAT!??? You're reaching out to the Facebook world for FINANCING???
I am DONE!!!
In all honesty, I should have done a little more research. BUT, this was the first offer to actually go anywhere, and it was this contract that I learned almost everything I typed above; I was almost done before this from the alone fact that I had shown him tons of properties, written tons of offers, and nothing was working. When he actually won this bid, I wanted to see it through; but I told myself if, for any reason it didn't, I would be through.
Well... forget it! I am THROUGH with this guy regardless!! I feel lied to and cheated and I have lost so many precious hours I will never get back. This guy is squirrely and I will NOT put my name and reputation on the line for him!
So.. the lesson to be learned here is three-fold:
1. Do your research anytime you're dealing with investors, especially one paying "cash" and there's no way to have him get pre-approved via a lender;
2. Trust your gut when you feel like something just is not right; and
3. Do NOT be afraid to fire a client when it simply needs to be done. Don't waste your time on time stealers when there are ready, able and willing buyers out there.