{4:12 minutes to read} In the past few articles, we have talked about how investors need to be aggressive, prepared, calculated risk takers, and hard workers who research, recognize, and work within their special niche. These investors are setting the stage to be successful. But even the most prepared and successful investors will have occasional challenges that require strength of purpose and faith.

Recently, I had a wonderful opportunity to buy a property that I knew had a lot of value. An old fellow passed away, and the inheritors just wanted to have a quick sale. The property was in my area of focus, Crown Heights. We negotiated a little bit, but I pretty much gave them what they wanted and was able to close in 2 weeks.

Everybody was interested in this property, so I knew it would turn around pretty quickly. One of the would-be purchasers was someone whom I knew very well, so I decided to give them a break. They told me they needed a couple weeks to get their funds for the down payment, and I wanted to grant them the time they needed.

A couple of weeks went by, and they told me they were going to need 2-3 more weeks to get their funds together. Despite our friendship, I had to tell them that if they couldn’t commit by Thursday, I would have to explore other options. Thursday came. They said the wire transfer was coming, and I would have the money by Monday.

No matter what your relationship is with your potential buyers, when it comes to business, you can’t let yourself get dragged into something that could turn out to be very, very nasty. So, being a little concerned, I called my next buyer and told him that by Monday, if the first buyer didn’t move forward. then he would get the deal.

Monday came and went, and I moved to my next buyer. The people I knew were not very happy about losing the property, but as an investor you have to know when to cut your losses.

My next buyer stepped up, got the OK from his home inspector, and right away requested a contract. The next day, the contract was signed, and money was wired over. There was a last-minute delay, which gave me a couple of sleepless nights right before the closing, but I am very happy to say that it was resolved, and eventually we closed on the deal.

What normally transpires is: you find a property that has value, you’re lucky enough to get it at a good price, and you sign a buyer relatively quickly. Everything should be fine and dandy, because we did all the moves that have to be done.

But when doing a deal, you have to keep in mind that something could really go wrong, or something unexpected could happen. You have to be able to roll with the challenge. This was an unusual situation, but there can be other unusual situations. As an investor, you have to be prepared for everything.

Every property has its story and its challenge. At the end of the day, however, this is what I love about this business. Experience is priceless. It’s not always fun when it happens, but the drama is always interesting.

Mendy Lipsker
Mendy Realty Inc.
822 Montgomery St
Brooklyn, NY 11213
Phone: 646.662.5454
email: info@mendyrealty.com
website: mendyrealty.com