Email: A Short Sale Failure (Embarrassing To Admit):I know that we've been terrible about communicating with you
lately, and for that we want to apologize.
But the truth is Sam & I have just simply been too busy
doing deals and working on our real estate investing
business and haven't prioritized engaging you.
But that's all about to change.
Simply put, Sam & I are doing a better job of defining our
roles within the company, and part of that is doing a
better job of giving lots of great information to you,
Another reason that we haven't been communicating with you
is that we nearly had a massive short sale failure, and I
wanted to tell you about it.
As you know, Sam & I are "super experts" when it comes
to flipping short sales.
But even people at their top of their game can be humbled
sometimes...(heck, have you seen Tiger play a round of
Anyway, last month we were working on this really great
deal. Here's the story...
We found the deal by someone on our team calling the list
of active short sales on the MLS, here in San Diego.
It had been sitting for 1 month, with NO offers.
The listing agent had it listed for $350,000.
We wrote the first offer on it for $290,000 back on
March 29th, and we felt that at that price, we'd have a
nice little "flip" and resell it for a tidy profit and
move onto the next deal.
Well the bank countered at $309,900, and basically told us
"Take it or leave it"!
Now while we were in negotiations on it, we were actively
marketing the property, and we found a buyer for $318,000.
Well you can quickly do the math and see that by the time
closing costs and transactional funding is paid for, there's
NO profit in reselling an approved deal at $309,900 for
I felt terrible, because my team and my negotiator had
worked on this deal for months...
And if you've ever worked on a short sale and couldn't get
it approved at your magic number, then I'm sure you know
how frustrated I felt.
I felt like a failure...
Mostly, because I was letting down myself, my team, the
homeowner in distress, and the buyer.
Now I'm not one to stand in the way of a deal, and hold
a homeowner hostage.
At this point, I was getting ready to just let the end buyer
close in my place, and help the homeowner avoid foreclosure.
And while I'm sure you agree that this is a noble gesture,
noble gestures don't pay my negotiators, my sales teams,
my office space rent, and all of the monthly overhead that
I'm on the hook for each and every month.
I've lost deals before, but this one was hitting me especially
hard, and I'm not sure why.
Feeling terrible, I left the office that day, knowing that
a whole bunch of time, energy and effort had been flushed
down the drain.
Then all of a sudden, as I was driving in my car, a lightbulb
went off...an idea so "crazy" to save the deal, and let me
earn some money it it, that was so crazy it just might work...
I've got to run now (I'm working on another deal), but I'll
pick up this story in a day or two...
Don't worry, it won't be 3 months later like the last time
we emailed you...I promise!
Until my next email, just know that if you've ever lost
(or you're about to lose) a short sale flip like I'm
describing here, I've felt you pain...but I also have an
inspirational story in my next email that should lift you up.
PS- Again, we're sincerely sorry about the lack of communication.
Don't worry, however, as this is all about to change...