I received a panicked call from an investor that his seller had ghosted him. The seller had wanted $1.2 million, and he had it resold for $1.7 million. He went on to explain how great the deal was, even to the extent that a neighborhood property had sold for $2.2 million. You can understand his anxiety with a $500,000 profit at stake.

In my many years mentoring students, I have learned that there are always two sides to every story, and by carefully asking questions and listening to an investor’s responses, I can diagnose what went wrong. I started on track from the beginning of his journey with this deal.

My first question was what contract he used, a “homemade” or a realtor’s® contract. His answer shocked me. He didn’t have a signed contract from the seller. That’s a bad start, and he explained that the seller wanted more money but had “tentatively” approved his price. He hadn’t carried a contract with him, so he was supposed to come back with it. This is when she ghosted him.

I asked why he didn’t take a contract with him, and he said he was afraid that he may not be able to find a buyer. He said his mentor has the strategy that you find buyers first and then go looking for sellers. That’s one way to do it, the other way is to find sellers first and then buyers. It is not uncommon for students of national gurus to call me with their problems because their mentor won’t answer their questions promptly or at all.

So his question was, “Now what?” It was interesting as I talked to him, it was like peeling away layers of an onion. The more questions I asked, the more surprises he came up with. The next surprise was that an attorney was involved, and that could be the reason she changed her mind. He’s correct, it was likely her attorney, or even a neighbor, it doesn’t matter.

What I have always done when this happened to investors I knew, I had suggested that they go by the seller’s property and “gently” confront them about what is going on. There is a reason the seller ghosted him, and he has the right to know what he did wrong. In one case, the seller said the investor’s price was too low and he wanted $1,000 more. The investor said. “OK” and went on to make a $48,000 profit. This was only because he didn’t give up when the seller ghosted him.

The price issue accounts for about 40% of the deal failures. More prominent is interference from other investors, and finally, the seller wanted to stay in the house after closing or to get help with moving. All these issues can be solved, even the price issue, if the seller is motivated. You must get the seller to answer the question, “What can I do to make this work for you?” Then do what they ask or walk away.

In summary, the above deal for a potential $500k profit was lost because the investor worked backward in getting a buyer first, and then the seller. I suspect that the actual reason the seller ghosted him was that the buyer went directly to the seller and made a deal with her, bypassing the investor. Get a contract from a seller first before you market the property, so you have some protection from other investors.

Frequently Asked Question

1. What Should I Do If a Seller Ghosts Me?

If you feel you have been ghosted, act decisively and quickly. If you have tried texting and calling, it’s time to drive by the seller’s location. I always take the recorded Notice of Interest or Memorandum of Contract to leave, so the seller knows it exists. Go by at a time when you know they will be there and don’t be confrontational, just get the facts.

In our experience with new investors, the chances of losing a deal with no contract is likely over 85%. Verbal commitments do not apply in contract law; get everything in writing, especially contract changes.

Different ‘gurus’ have different opinions, but our experience is finding motivated sellers and then a buyer for your deal. Ideally, you should be finding motivated buyers from day one, so you are ready when you find a seller. Buyers are easier to find as you can see at https://davedinkel.com/products/

Prevention only comes about by thinking a Black Hat wholesaler will be coming after your deal. First, educate the seller that an unscrupulous investor may come by and illegally offer more money, have the seller sign your “Notice to Homeowner,” stating that he understands he cannot accept another offer.

There is nothing illegal about changing their mind, it is called seller remorse and occurs about 25% of the time. However, if they have signed your contract, it can’t be cancelled for any reason unless acceptable to the investor/buyer.

If price is an objection, you need to find out how important it is to sell fast and for cash. If the seller isn’t under a time constraint, has a money issue, or has a personal dilemma, he may not agree to the price you need. Offer to help move and build it into your price before you make your offer. However, never give the seller money; only pay the moving company, and only after closing (escrow with a closing agent). If fear is the seller’s issue, break it down into what the real problem is and answer their objections one at a time.

You can get to the root of motivation for a seller by asking a few questions. First, “Why are you selling?”, “How soon can you close?”, and Are you ready to sign an AGREEMENT today, if not, what do I have to do to make you comfortable?’. The answers to these questions will determine the truth about your seller’s motivations.

The best times to involve your attorney in your deals are to have him review your contracting, review the signed contracts from the seller and end buyer, have him open escrow and start the title work, negotiate with city or counties for lien reductions or mortgage payoffs with lenders, and to close the transactions.” Your attorney is not the adversary; it’s the opposing party’s attorney who is a deal killer, and having your attorney allows him to help overcome this obstacle.

The key to successful prospecting and bringing back deals that didn’t close is to follow up until the property is transferred in the public record. Some of our deals have been where the seller came back to us months and years later because they felt comfortable with us and not the other “pushy” investors who contacted them.

Your contract’s most important clauses are inspection period (as long as possible), when the EMD must be deposited if at all, your ability to access the property, any added clauses specific to the property that will protect you against seller claims later that were verbal only.

Visit davedinkel.com for full privacy policy, terms of use, etc.  Be sure to contact us through the website at davedinkel.com if you have questions or concerns ([email protected]).  Results mentioned in this presentation and any video, article, and/or material related to Dave Dinkel and his associated businesses are not typical nor are a guarantee of any earning potential.  No advice is to be construed as legal, accounting, or professional advice EVER.  Please consult related licensed and qualified professionals before taking any action.  No person(s) mentioned in the articles and /or shown on videos received compensation in any form for their opinions.

I received a panicked call from an investor that his seller had ghosted him. The seller had wanted $1.2 million, and he had it resold for $1.7 million. He went on to explain how great the deal was, even to the extent that a neighborhood property had sold for $2.2 million. You can understand his anxiety with a $500,000 profit at stake.

In my many years mentoring students, I have learned that there are always two sides to every story, and by carefully asking questions and listening to an investor’s responses, I can diagnose what went wrong. I started on track from the beginning of his journey with this deal.

My first question was what contract he used, a “homemade” or a realtor’s® contract. His answer shocked me. He didn’t have a signed contract from the seller. That’s a bad start, and he explained that the seller wanted more money but had “tentatively” approved his price. He hadn’t carried a contract with him, so he was supposed to come back with it. This is when she ghosted him.

I asked why he didn’t take a contract with him, and he said he was afraid that he may not be able to find a buyer. He said his mentor has the strategy that you find buyers first and then go looking for sellers. That’s one way to do it, the other way is to find sellers first and then buyers. It is not uncommon for students of national gurus to call me with their problems because their mentor won’t answer their questions promptly or at all.

So his question was, “Now what?” It was interesting as I talked to him, it was like peeling away layers of an onion. The more questions I asked, the more surprises he came up with. The next surprise was that an attorney was involved, and that could be the reason she changed her mind. He’s correct, it was likely her attorney, or even a neighbor, it doesn’t matter.

What I have always done when this happened to investors I knew, I had suggested that they go by the seller’s property and “gently” confront them about what is going on. There is a reason the seller ghosted him, and he has the right to know what he did wrong. In one case, the seller said the investor’s price was too low and he wanted $1,000 more. The investor said. “OK” and went on to make a $48,000 profit. This was only because he didn’t give up when the seller ghosted him.

The price issue accounts for about 40% of the deal failures. More prominent is interference from other investors, and finally, the seller wanted to stay in the house after closing or to get help with moving. All these issues can be solved, even the price issue, if the seller is motivated. You must get the seller to answer the question, “What can I do to make this work for you?” Then do what they ask or walk away.

In summary, the above deal for a potential $500k profit was lost because the investor worked backward in getting a buyer first, and then the seller. I suspect that the actual reason the seller ghosted him was that the buyer went directly to the seller and made a deal with her, bypassing the investor. Get a contract from a seller first before you market the property, so you have some protection from other investors.

Frequently Asked Question

1. What Should I Do If a Seller Ghosts Me?

If you feel you have been ghosted, act decisively and quickly. If you have tried texting and calling, it’s time to drive by the seller’s location. I always take the recorded Notice of Interest or Memorandum of Contract to leave, so the seller knows it exists. Go by at a time when you know they will be there and don’t be confrontational, just get the facts.

In our experience with new investors, the chances of losing a deal with no contract is likely over 85%. Verbal commitments do not apply in contract law; get everything in writing, especially contract changes.

Different ‘gurus’ have different opinions, but our experience is finding motivated sellers and then a buyer for your deal. Ideally, you should be finding motivated buyers from day one, so you are ready when you find a seller. Buyers are easier to find as you can see at https://davedinkel.com/products/

Prevention only comes about by thinking a Black Hat wholesaler will be coming after your deal. First, educate the seller that an unscrupulous investor may come by and illegally offer more money, have the seller sign your “Notice to Homeowner,” stating that he understands he cannot accept another offer.

There is nothing illegal about changing their mind, it is called seller remorse and occurs about 25% of the time. However, if they have signed your contract, it can’t be cancelled for any reason unless acceptable to the investor/buyer.

If price is an objection, you need to find out how important it is to sell fast and for cash. If the seller isn’t under a time constraint, has a money issue, or has a personal dilemma, he may not agree to the price you need. Offer to help move and build it into your price before you make your offer. However, never give the seller money; only pay the moving company, and only after closing (escrow with a closing agent). If fear is the seller’s issue, break it down into what the real problem is and answer their objections one at a time.

You can get to the root of motivation for a seller by asking a few questions. First, “Why are you selling?”, “How soon can you close?”, and Are you ready to sign an AGREEMENT today, if not, what do I have to do to make you comfortable?’. The answers to these questions will determine the truth about your seller’s motivations.

The best times to involve your attorney in your deals are to have him review your contracting, review the signed contracts from the seller and end buyer, have him open escrow and start the title work, negotiate with city or counties for lien reductions or mortgage payoffs with lenders, and to close the transactions.” Your attorney is not the adversary; it’s the opposing party’s attorney who is a deal killer, and having your attorney allows him to help overcome this obstacle.

The key to successful prospecting and bringing back deals that didn’t close is to follow up until the property is transferred in the public record. Some of our deals have been where the seller came back to us months and years later because they felt comfortable with us and not the other “pushy” investors who contacted them.

Your contract’s most important clauses are inspection period (as long as possible), when the EMD must be deposited if at all, your ability to access the property, any added clauses specific to the property that will protect you against seller claims later that were verbal only.

Visit davedinkel.com for full privacy policy, terms of use, etc.  Be sure to contact us through the website at davedinkel.com if you have questions or concerns ([email protected]).  Results mentioned in this presentation and any video, article, and/or material related to Dave Dinkel and his associated businesses are not typical nor are a guarantee of any earning potential.  No advice is to be construed as legal, accounting, or professional advice EVER.  Please consult related licensed and qualified professionals before taking any action.  No person(s) mentioned in the articles and /or shown on videos received compensation in any form for their opinions.