In my many years as a wholesaler, I’ve tried to keep away from situations that are obviously red flags.
You know what I mean – those events or situations where something seems either too good to be true or has an uneasy element that makes me question what’s going on.
We encounter these types of situations every day and in most cases, we know enough to acknowledge them and steer clear. However, there are cases that aren’t so clear cut and we might not know immediately that they’re a problem.
A major red flag is when someone wants you to do something that’s typically out of the norm.
Now, trying something new isn’t a red flag – you should always try something new in order to learn and grow – but when that something new is atypical and outside of what would be a standard, then you have to ask yourself why.
One of my recent coaching calls, one of my Astro members asked about a situation with their buyer, something that they hadn’t seen before and thought was strange.
What they were describing was a buyer red flag.
Spotting a Red Flag in a Buyer
Let me start this by saying that the majority of buyers will be transparent with you and will want to work with you. They will be open to discussing terms or situations so that both of you are on the same page when it comes to your deal.
In the case of this Astro member, they had a buyer who wanted to switch the title company the Astro member was using to another company. At the same time, they were also ignoring a very clear and immediate situation that would have benefited everyone involved.
You can view the video here:
Essentially, the thought was that the buyer owned his own title company and that was the main reason that he wanted to switch companies. In my experience, when a buyer wants to change title companies, it’s because they have control at that particular company.
Another big red flag was the buyer’s refusal to allow for any probate and back taxes to come from the seller’s proceeds. The seller was unable to pay these fees upfront, so the right thing would have been to allow them the grace of paying once the purchase was complete.
Now, as I advised, my students might want to handle paying up front for the seller if they’re able to, but for the buyer to refuse to even consider or push back on that means they aren’t actually ready to purchase.
Beware of those buyers who want to play games with you; they aren’t worth it, and it’s never a good move for you.
A buyer who wants to purchase a property will do what they need to to get that property. They’re willing to discuss or implement terms that will allow everyone in the deal to win.
Have you seen some red flags in buyers you’ve dealt with or aren’t sure if what you’re seeing could be a red flag?