Hi! It’s Lou Brown. I’m back with another of my 101 cash flow accelerators. And this one is about your future. Remember, I’ve been in this business for over 40 years. I’ve learned a lot about what can go wrong in a transaction as much as what can go right about it. Of course, we do this business so we can make a good profit and a good living for ourselves and our families. And when you are selling property, it’s inevitable that the time that you worked out with the buyer will change. So in other words, there’s a date on the contract you expect that to happen, and many times that doesn’t happen. So what I suggest is there be a clause in your agreement that says if it goes past the day that it’s supposed to close, then you get paid an additional fee per day for each day that it doesn’t close.
And that has paid me tens of thousands of dollars over the years because here’s what happens. They might have applied for a loan. And the lender, for whatever reason, can’t get their act together. Maybe it’s a credit issue. Maybe they’re shopping for a loan. Going to sell the loan to somebody else, delays the whole process and you pay. Why do I say you pay? Because property taxes, insurance, and interests continue on a daily basis until you finally closed. Oh, by the way, let’s not forget your opportunity costs because that money that you could have had, maybe you’ve got another closing lined up or you’ve got your Mercedes on order. And you don’t have the money to be able to close that transaction. All of that is not good news for the seller. So be sure and have a clause in there that you get paid on a daily basis. What is it? Well, it’s really relative to the price of the home. But generally, my daily rate is a hundred dollars. Hundred dollars per day for every day that this is extended. How many days do you want to buy?
I’ve got that in my addendum to the Purchase and Sale Agreement. That’s on the selling side. So, that’s my Volume Two Selling. You can check it out. StreetSmartInvestor.com/tools And this is volume to selling. And holding. Hopefully, this is of help to you and your business. I love to help people build amazing real estate businesses. Check us out. Look forward to seeing you soon. Yeah, baby!
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