Why I Don’t Go to Closing and Neither Should You

1) I really think I can find a better use of my time than driving to the closing

I  believe in the value of my time. That is one of the reasons I am so big on having a virtual assistant in my real estate investing business. I understand that doing mundane things that can be outsourced definitely should be so that I can focus on the money making activities. I would definitely classify going to closing as a mundane activity. Wholeheartedly I would say that getting in the car and driving to closing is definitely VERY mundane. I really hate driving because it is so counterproductive. I know now why Trump has a driver that takes him where he needs to go. You really can’t do much money making activity while behind the wheel. Maybe you can make a few phone calls but that is IT.

The only reason you might go is because you have never seen one before. Let me tell you, you really aint missin that much if you decide to skip out.  Closing is really just a bunch of people sitting around a table signing documents while overpaid attorneys are shoving papers in front of you while you stare at each other kinda funny because you don’t know what else to say.

2) I like the fact that I can make money at closing without ever owning the property

One of the awesome things about wholesaling real estate is that you can make money on properties without ever owning them. It is such a great system the way it is set up. You see what we ARE making our money on is the fact that we have a legal and binding interest in a real piece of property. The power and the money is in the contract.

I can illustrate to you the power of the contract by a bankruptcy deal that I did a while back. I put the property under contract subject to the approval of the bankruptcy trustee (whole other story). The trustee being the awesome guy that he was turned the deal down. However, it has been like a year later and I STILL get letters from the bankruptcy court regarding this property because of my contract which gives me a legal interest in the property. It is the the CONTRACT that we are selling and NOT the property.

Because I do not own the property there is nothing for me to sign. I get paid an assignment fee that is recorded on the HUD-1 because I am assigning my legal interest in the property to another party.

3) A deal can fall apart at the closing table from stupid questions

Remember I said that at closing you end up sitting around a table looking at each other kinda funny? Well, when you get in an uncomfortable situation you might end up saying something stupid. The seller might have a chance to really “examine” the HUD-1 and wonder what this little “fee” is for over here. If you are not trained in handling this type of things you can really blow the deal by stammering and stuttering and some well…I….uh….um….err…

In reality what you need to understand and YOUR attorney needs to understand that the only fees that the seller needs to worry about is the fees on the SELLER side of the HUD. To give you a quick primer there are two sides to a HUD. You have the sellers side and the buyers side. Your assignment fee goes on the buyer’s side since that is whom it is being charged to. I am going to be talking about this a lot more in detail when I release my “17 Sneaky Little Wholesale Tricks” I am working on it as we speak and it should be ready to go by the beginning of  the year.  That trick is what I call “Prepping the HUD” Keep your peepers out for that one

4) I like the fact of the money coming to me without me having to “chase” it

Should I really have to explain this one? The most awesome thing about being financially free or independent or whatever you want to call it is freedom. I would not have been able to spend the last  10 days in Florida if I had to worship a boss. Well I guess I may have been able to if I graveled enough than would have been made to work like 100X harder when I got back to show my gratitude. Eck! It makes me sick just to remember those days.

It gives a nice feeling to know that my money is coming to me on my terms without me having to go out there and chase it down. That is the position that you want to be in my friend. You want to get to the position to where you don’t have to worry about where that next mortgage or rent payment is coming from. You want to KNOW that the money is coming to you and you have nothing to worry about. In fact what would be really cool is if you had a Lamborghini payment coming up and all you had to worry about was which closing you where going to take it from 🙂  Alright, I am a little kidding about that one. If you know me at all you know I am NOT about living way over the edge but living  a little bit below your means. That may be contrary to what some of the other Guru’s portray but I like to live in a little place called reality.

Well I hope you picked up a nugget or two from this blog post and things are looking up for you. If you want to be on the look out for “17 Sneaky Little Wholesale Tricks” and be notified of when it will become available you can sign up to my email list below. Also as a side bonus if you decide to do that you will get:

-My Probate Negotiation Trick Video ( 1 of the Sneaky Wholesale Tricks)-I show you how to take a 18K discount and turn into a 3 discount to the seller and make them feel good about it. Real case study of a deal I am closing this month!

-2 Live Motivated Seller Calls– Two calls in which I negotiate over the phone with motivated sellers. One of the calls gets a little crazy and one of them is a deal.

-My Mini Wholesaling Audio Workshop- An interview call where I spill the beans on what I am currently doing in my business

chat atcha latah

Joungblood

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  • Hey Alex, great stuff as usual. I usually go to closings if I have never closed with the buyer before. I show up towards the ending of the signing of docs that way no one ask me any silly questions. If we have done business before then I would not be at the closing. I still go by and pick up my check.

    Hey Alex, you never touched on that pass subject about getting the buyer to accept your assignment fees without any hassles. Anything over six grand I usually get those crazy looks.
    Thanks again.

  • Brooke S.

    As always superb material.
    Looking forward to more of the “17 sneaky tricks”
    Keep up the good work!
    🙂

  • Dan

    Alex,

    Sounds like our businesses are almost Identical. I never go to closing either, but I always have the hud emailed to me the night before so I can look over it and make sure its right! There is nothing worse than going to the title company and realizing they made a mistake!!!

    Keep up the good work! I enjoy your blog!

    Dan Koch

  • Erich

    Great info! For Sure, I’d like the 17 secrets…