Unlikely SFR Deal Killers
Transcript:
Jack Butala: Jack and Jill here.
Jill DeWit: Hi.
Jack Butala: Welcome to the Jack Jill show. Entertaining real estate investment talk. I'm Jack Butala.
Jill DeWit: And I'm Jill DeWit, broadcasting from sunny southern California.
Jack Butala: Today, Jill and I talk about those unlikely SFR deal killers. Single family residential wholesaling deal killers that lurk in the background. And you may or may not be familiar with.
Jill DeWit: I can't wait. I'm sure you have a long list. This is kind of one of yours.
Jack Butala: I do.
Jill DeWit: So I'm happy to ...
Jack Butala: We're going to talk about land killers too, and deal killers. Before we get into though let's take a question posted by one of our members on the JackJill.com online community. It's free.
Jill DeWit: Okay, Chris asks: Hi all, up to this point I have always used a cashier's check to purchase my properties with no problems at all. That was until this past week I had a seller back out of a deal after he agreed to sell and all the due diligence checked out. I sent the deed and cashiers check to the notary to close the deal. The notary then contacted the seller to find out that he was not going to sign it and backed out of the deal. There are other details that I should've listened to before sending the envelope, but when the seller agreed I was all too happy to run to the bank.
Having the seller back out of the deal caused me to have the bank to put a stop payment on that cashier's check.
Jack Butala: Okay hold on a second, Jill.
I didn't know that was possible.
Jill DeWit: I did neither. You know to be honest with you, I was going to finish the question and then cover this stuff.
Jack Butala: Okay go, yeah.
Jill DeWit: So yeah.
Jack Butala: Yeah, go ahead.
Jill DeWit: Researching, after the fact. I didn't think the bank should have granted this because now they are in a double jeopardy situation that should that check be presented they have to honor it. Well that's kind of their problem.
None the less, I was wondering if cashier's checks are the best option or would a business check serve me better in terms of having more control should a seller back out again? Had the bank not place a stop payment on that cashier's check, those funds can be locked up depending on the bank indefinitely.
Obviously the sellers, having that bank guarantee, can offer them a sense of confidence that their not going to be taken advantage of. I'm sure there will be various views and I look forward to everyone's ideas on this. Thanks, Chris.
So my first thing was, I personally, do not worry about these situations because the seller never got the money. And this is why we have the unrelated third party, AKA the notary that you hired in their city who's handling the transaction. They have the money, they have the deed, they have everything. And they don't hand them that envelope with the cashier's check until they sign.
So I wouldn't have even done any of this work. This for me was kind of a couple of extra steps.I kind of understand where you're coming from. But for me the fastest thing is well hey notary it's obviously not going to happen. So in that package, remember you already have a prepaid return envelope that you were going to send the deed back in. So put everything back in that envelope and overnight it to me.
Jack Butala: Yeah.
Jill DeWit: So now, say this was Monday, this all happened on Tuesday,