Do we ever not close at Effortless Home Buyers?
This is very rare but there are instances where it does happen. One of the biggest reasons for this is because we were given information which was misrepresented.
For example, we pull the title and it’s actually under a partnership and the other party was not aware of the deal.
To find out more about this, you can visit our website at:
https://www.effortlesshomebuyers.com/
Fernando O. Angelucci is Founder and President of Titan Wealth Group. He also leads the firm’s finance and acquisitions departments. Fernando Angelucci and Steven Wear founded Titan Wealth Group in 2015, and under his leadership, the firm’s revenue has grown over 100% year over year. Today,
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https://thestoragestud.podbean.com/e/effortless-home-buyers-do-we-ever-not-close/
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So, is there ever a situation or an instance where we don't close or we're not able to close? So this is very rare, but there are situations when this does occur. One of the biggest reasons we're not able to close is if there was some information that was misrepresented to us. So for example, if we go and we pull title and we find out that the property is actually not owned by the seller, but let's say, maybe owned in a partnership. And the other partner's not aware that one of the members is trying to sell it. That's an instance where we're not able to close, right? We're not gonna pay if we're not going to get legal title to the property. So title issues is number one, that's where we're usually not able to close.
And this can be anything, this can be, maybe there's a ton of encumbrances on it, maybe there's IRS liens and there's three mortgages and a bankruptcy judgement. And all of that is worth more than what we're willing to pay for the property. But the seller's unwilling to do a short sale to sell the property and wipe out those liens. Another situation is when the actual information about the property is misrepresented or not accurate. So for example, say, someone tells us that the property was a legal four unit building. And when we go and pull the zoning on the property, the municipality comes back and says, No, this is a two unit property and if you buy this property, you're gonna have to down convert this back into a two unit property. Well, now the after repaired value on that, that we were using as our underwriting is now inaccurate, and we're probably not going to be able to sell it for as much of a price as we thought.
So this will either come to a renegotiation or we'll just walk away from the contract. Another thing is when we have sellers that are unwilling to allow us to get into the property until we're under contract and say, for example, they'll say, Oh, everything inside is brand new. You know, nothing needs to be done. And then we walk in and we find out the house you know, meet needs a hundred thousand dollars in repairs. At that point, then we either have two options. We either do not close, or we request a price change in the amount of the repairs that we were not made aware of. So these are some typical situations where we're unable to close. Another issue is the seller's attorney for whatever reason does not want the property to close. Then we end up getting a cancellation letter from the seller's attorney. So very rare that this happens, you know, we close anywhere between 75 to 150 properties a year, and properties will usually fall out maybe one to 2% of the time. So very rare situation, but it can happen.
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