With every joint venture with The Bird Dog Program, you’ll probably go into every transaction with a feeling of optimism and excitement. But in a small number of cases, the deal will fall apart. Some real estate investors chalk it up to unavoidable factors, like a buyer’s funding source falling through, but the reality is that many of these deals-gone-bad are preventable with the right approach and strategy. So in today’s article, the founder of The Bird Dog Program, Kristine Zelazo — better known throughout the industry as The Short Sale Gal — will explore why so many deals fall apart and how you, as a real estate investor, can implement measures to prevent this.
Why Do Real Estate Deals Fall Apart?
As a Bird Dog, you’ll be involved in each real estate transaction since you’re entering into a joint venture. By understanding precisely why some deals collapse, you’ll gain a better understanding of what you can do to maximize the chances of closing the transaction without incident. Consider the following reasons why real estate deals fall apart.
- Uncertain funding sources. In most transactions involving a real estate investor, it’s typical that you’ll have a buyer with cash in-hand. If your buyer is borrowing and has yet to be approved for the loan, this increases the chances that your deal will fall through. Borrowing can result in a situation where the closing is delayed, and short sale approval letters may expire. This can all be avoided by working with cash buyers or buyers who have an approved, solid funding source.
- Inattention when reviewing paperwork. It’s vital that you pay close attention to all paperwork, making note of important timeframes, dates, deadlines, terms, conditions and other info that can impact your transaction. For instance, you could run into problems if a buyer failed to complete a form properly or perhaps you failed to notice that the buyer does not have cash in-hand, but rather, is using a hard money lender. Writing down the improper date or deadline can also have a major impact so it’s essential that you pay attention to these key details.
- Communicate and stay on top of the transaction. Poor communication is a primary factor in deals that ultimately disintegrate. So be sure you clearly articulate information to the buyer and encourage your buyer to do the same, asking questions and avoiding assumptions. Additionally, it’s wise to follow-up throughout the course of the transaction and make it a point to stay on top of the deal as it progresses. Ensuring that everyone fulfills their end of the deal in a timely manner is key.
- Unexpected twists and turns. Always expect the unexpected. Get in the habit of making contingency plans if a worst-case scenario arises. One example is to record information for potential back-up buyers. Many bird dogs will keep a list of real estate investors too, in the event that they encounter a deal that may interest them in the future. But simply having at least one or two backup buyers for a particular property can serve as an effective way to hedge your bets so to speak.
When you’re aware of the potential problems, you’ll be better-positioned to take action in a manner that allows you to avoid or compensate for these deal-breakers.
Ready to Get Started in Real Estate Investing With The Bird Dog Program?
If you’re getting started in real estate, consider working with a real estate investing mentor like The Short Sale Gal, Kristine Zelazo. Getting started in real estate investing can be somewhat challenging, but when done right, you can stand to make significant profits. You’ll have lots of advantages in this regard when you enter into a joint venture and work with a real estate investing and short sale expert like Kristine Zelazo.
Here are some answers to commonly asked questions in The Bird Dog Program FAQ.
Based in Florida, Kristine works with bird dogs, investigators, buyers and sellers. She is an experienced negotiator. So if you’re an investor seeking to get started involved as a bird dog, want to start buying short sales and need a great mentor or wish to pursue a short sale transaction for the sale of your property, turn to Kristine Zelazo, the Short Sale Gal!
Click here to learn more about The Bird Dog Program, click here or call Kristine at 800.664.0616, x802.