$15k from a Dead Deal ๐ธ
This check is from a deal I closed yesterday. What makes it interesting is that this deal had died over a year ago (or so it seemed) Back in 2024, I had this property under contract and was lined up to make a $36k assignment fee. On the actual day of closing, the seller backed out. Instead of getting emotional or walking away, I did something some people donโt think aboutโฆ I protected my position. I filed a memorandum (clouded the title), which meant that whenever the owner decided to move forward in the future, I would be part of that conversation. Fast forward one year later โฉ The seller reached back out. They offered me $10k to release the cloud. I countered at $20k. We settled at $15k. Here are the biggest lessons I learned from this deal: ๐ก Lesson #1: Double Closing Matters โข In certain situations, double closing is the better play โข Had we double closed originally, the $36k spread would not have been visible to the seller or end buyer โข Less transparency = fewer emotional decisions = smoother closings ๐ก Lesson #2: Due Diligence Is Non-Negotiable This deal fell apart because of back taxes that werenโt fully understood upfront. โข Taxes appeared paid, but they were actually paid by a tax lien investor, not the seller โข Those taxes still needed to be redeemed before closing โข The seller purchased the property via quit claim deed, not a warranty deedโmeaning the back taxes were already attached when she bought it (and she didnโt know) If we had uncovered this earlier, expectations wouldโve been set properly and the deal likely wouldโve closed the first time. ๐ก Lesson #3: Know Your Legal Rights โข Filing a memorandum / clouding title protects you when you are not in breach of contract โข If a seller backs out without cause, you may legally cloud the title for a small fee โข This ensures that when the property sells, youโre not cut out of the deal This post isnโt to flex. Itโs to show whatโs possible when you: โข Stay patient โข Understand the paperwork