adamekeite: How to protect your real estate deals

How to protect your real estate deals ? By Connected Investor Faye Wilson

Recently we had the privilege of hosting our second Connected Investors Meet up in the Atlanta Georgia Area.

http://www.meetup.com/Connected-Real-estate-Investors-of-Atlanta/

During the meeting one of the attendees brought some very important questions.

What if you have done everything you know how to do and still you end up wasting time in a daisy chain? What if you lost money on deals? What if your business partner turned out to be (for lack of a better word), a thief!?

Due to the massive amount of money that can be made in Real Estate; The Real Estate Industry has attracted interest from all professions. It?s not always easy to vet buyers, Sellers and lenders. Nor, is it always easy to vet potential business partners.

The truth is today?s real estate business can be quite fearful.? The virtual community allows people to create images of themselves which may or may not be true.

What do you do?

Here you are you have decided to invest in Real Estate. You meet a group of investors online and off line whom you assume are working toward a common goal. The conversations continue to advance toward a possible joint venture relationship.

As the relationship advance; you soon discover this ?investor? is trying to steal your deal.

You introduced them to your buyer, and now they refuse to return your phone calls. You become angry, hurt and discouraged. You trusted that this one deal could lead to your big breakthrough. The one you have waited on all of your life. The deal of a lifetime!

You put your time, and trust into this one deal, and now it is gone.

Something inside of you tells you to quit. Give up. You tell everyone you know what happened to you. And, the only advice you get is ?Be careful.?

Be careful!?

You were careful. You had your Non-Circumvent Non-Disclosure Signed. What else could you have done?

This scenario is typical. It happens every day in the Real Estate Business. Hundreds of new and seasoned Real Estate Investors lose time and money on deals that either do not close or were circumvented.

How do you protect yourself in this almost 100% virtual business? How do you know for sure you are communicating with an honest person? How do you know if your deal is a real deal?

There are certain steps you can take to protect your deal, and you MUST protect your deals.

I will list a few here, but remember it is up to you to do your own due diligence to protect yourself. Hiring an attorney to put ?teeth? into your documents is always the best idea.

1. Google the name of the person and company you are considering as a business partner.

2. Check any sites that will bare record of ?bad behavior.?

3. If it is a company, check them out on BBB, International Chamber of Commerce, Rip-off Reports and other scam reporting sites. (keep in mind angry people will gripe over the internet, and may not always speak the truth). Any reporting on the sites are permanent.

4. Ask your attorney to create a Confidentiality Agreement based on your state law. If you cannot afford an attorney; there are some pretty good websites with strong legal documents

5. Slow down. Take your eyes off of the money and monitor the process.

6. Avoid people who use only first names.

7. Never deal with international investors when you are new to the industry.

8. Do not provide any personal information to anyone other than a title company

or closing attorney on your documents.

9. Make sure you get the property under contract before sharing your interest with anyone.

10. Get a coach or mentor who has a strong presence. It is this writer?s opinion that when someone has a reputation to protect they are less likely to ruin it.

You may think of other ways to protect your deals and avoid Real Estate Investors behaving badly.

Remember trillions of dollars are being invested in the Real Estate Industry, and the more money being made; the more problems will surface.

A few years ago; I spent months working with one buyer who showed a POF (Proof of Funds) for a ton of money.? At the end of four months the buyer walked away from the deals.

No explanation, No return phone calls, Nothing. Absolutely nothing!

Sellers, Lawyers, Brokers and Agents were calling me. They were irate that this had happened. I was blamed because ?My client? failed to perform. I felt horrible as I knew many of these individuals were trusting in their deal to close in order to take care of their families.

I know it was not my fault this buyer did not perform. It did not matter; I still felt horrible.

It is through this ?fire? I learned never to put my trust in one deal closing. Never gamble your entire career on someone else decision to perform.

Moving forward:

I have built a strong Commercial Real Estate Transactional Company. We offer Funding, Properties Consultation and Underwriting Services to our clients. www.fayewilsonfunding.com

Today I work with Ross Hamilton, CEO of Connected Investors the largest Real Estate Platform in the world as an independent Connected Investor Base Leader in the Atlanta, Georgia Region. I am also a Business Associate in the Georgia Real Estate Investment Association (GREIA).

Our Meet ups are held every third Thursday at the Solutions Realty, 100 Glendalough, Tyrone, Georgia in cooperation with Chris Littleton President of Georgia Real Estate Investment Association.

We are currently creating and building relationships in the local and state political arena as we continue to focus on expanding our brand.

The reason I want to share this with you is to help you understand that your real estate investment business should far exceed closing one deal. If you will take the time to build a business; when one deal bombs (and it will)You will not give up. You will do like my friend Carlos Rojas in Phoenix who does dozen of deals per week. Or, my friend LadyDee Shabaaz, CI Base Leader in charlotte who is a deal making machine. ?Or, some of my other friends as fellow Base Leaders who are raising the bar of Real Estate Investing around the world.

Check Your state here for your local Base Leader:

http://blog.connectedinvestors.com/connected-investors-networking-meetings/

Having dozen of deals in the pipeline keeps you inspired and feeling alive! You will also make money. Lots of money. It may not happen overnight. It will happen.

Do not allow one deal to control your destiny. It is one deal. There are hundreds waiting for you.? Shift your method and shift your outcome. Stay focused on building your brand, and your purpose. You will find you will be far too busy to subject yourself to daisy chains and unrealistic expectations of others.

Faye Wilson

Connected Investor Base Leader, Atlanta, Georgia Region

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Connected Investors free real estate training

Source: http://blog.connectedinvestors.com/how-to-protect-your-real-estate-deals/

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