One of my favorite YouTubers is Samcrac. He only has 790,000 subscribers as of now, but the channel is great. Samcrac is all about finding cars at Copart or insurance auction lots and fixing them up for pennies on the dollar. I watch his channel because it’s a relaxing escape from real estate sales. Recently, Samcrac has been criticized for his repair abilities. As an example, he was repairing a floorboard in his Ferrari the other day and he used rivets instead of welding and he used a rattle can to spray undercoating. I’m sure lots of commenters ripped him for the repair, but here’s the thing: Samcrac is driving a Ferrari, and I can bet you there aren’t a lot of commenters driving one. It’s always easier to rip on someone else versus looking inward. That got me to thinking. Sometimes, there isn’t always a perfect fix in a home purchase or sale. You just need to keep working towards the close.
A Deal Going Foul From The Start
Recently, I helped a buyer purchase a wonderful property in Jefferson County. The buyer had originally inquired about its availability when she saw it on a simple internet search. She called me to see if we could set up an appointment to go see it. Because the property was exceptional, I knew I had to act quickly. The chances of this property being around for more than a week was slim, and we were going to have to make a quick decision. Even though I always believe you should be pre-approved before you look at real estate, I knew we didn’t have time to get a pre-approval before writing an offer. Time was of the essence.
Fixing A Mortgage Pre-Approval
After showing the property, I asked the buyer if she was going to want to write an offer. She did, and I put it together as quickly as possible. We didn’t have a pre-approval, but we wrote the offer anyway. I was able to “fix” the pre-approval after we wrote the offer. It wasn’t perfect, but it was what we needed to do get the buyer the chance to buy the property.
Fixing An Issue With The Listing
The property listing was incorrect. We knew the property was a certain size, but we didn’t exactly know how big it was. There wasn’t time to clarify, and I’m not sure the sellers would have accepted our offer with some sort of longer time commitment. The most important thing was to get the property under contract. I was able to fix the size of the lot issue with a survey clause in the purchase contract.
Fixing An Issue With The Ownership Structure
We made our offer in cash. However, that wasn’t the ideal method of financing. The original plan was to go with an LLC, but the interest rate to be charged was more than 150 basis points higher than if we went with a second home. I had some knowledge that this would be the case beforehand but I wasn’t sure if we were going to be able to transfer the title from the LLC. I was able to fix this issue by working with both the title company and the lender in order to get the title in the correct name with a mortgage.
You need to know you have an issue to fix it
A lot of times, real estate agents, title companies, and mortgage lenders know there are issues with their deals. I only work with people that communicate these issues upfront instead of letting them pop up without warning. When an issue is communicated to me, the next question is “How do we fix this?” There’s no point in shooting the messenger and in fact, it’s counterproductive. The goal is to get the buyer or seller into the home or out of the home. It’s not about the hurdles that enter the transaction. In my career, like Samcrac, anyone can complain about my repairs, but I get buyers the homes of their dreams, and I get sellers a quick sale with as little hassle as possible. I don’t own a Ferrari yet, but things are pretty good.