Walk Away Or Take The Deal?

There is a lot of debate about when to walk away from a transaction and when to take the deal. The debate revolves around when a buyer low balls the value of the deposit by enough that you are clearly getting ripped off on your end of the transaction.

This usually occurs when you have as little as one or two buyers interested in a property and you do not have the leverage necessary to demand a higher asking price from the interested buyer(s). You can still try to get a decent deposit – in fact, you should try to get a decent deposit, because that is your role in the transaction. But no matter how much you plead and argue, there is still a chance that the buyer refuses to put down a deposit any larger than a few hundred dollars for the property.

One of the reasons this number may be so low is because the buyer has never met you and has no proof that you are a trustworthy wholesaler. They realize you have a property, but if they simply gave money to every individual with a property, they would be consistently taken advantage of by scammers. Still, you know you are trustworthy and you know you want a larger deposit.

What to Do

Many wholesaling experts will tell you to walk away from the deal. Their argument is, rightfully, if the individual is not going to place a large enough deposit than it must not be a buyer you want to deal with, and you should either drop the property or find a new buyer that is willing to make an acceptable deposit amount.

But wholesaling is about three things:
• Volumen • Completio
• Rapport/Expertise

The first two are directly related. You are not going to be able to wholesale real estate for a living if you cannot move a great number of properties, and you cannot wholesale these problems unless you complete those transactions. However, both of those are also related to the third aspect of wholesaling: rapport and expertise. The more real estate you complete and move, the more likely your name will be known in the area and the more buyers will be willing to trust you with their transactions.

So, in essence, though you are taking a low balled deposit this one time around, the buyer and other buyers in the area will know your name and, when another property comes your way and you need to bring that property to the buyers, they are going to be more likely to trust you with a larger deposit. That is why if you cannot finagle more of a deposit out of your buyer, it is still a good idea to take the deal anyway.

As the creator of Virtual Wholesaling, Cris Chico is helping investors realize their dreams of financial freedom through his proven & guaranteed method of finding & flipping properties in hot markets (whether you live there or not). To find FREE information about how YOU can "Invest Everywhere from Anywhere", visit http://www.VirtualWholesaling.com today!