Page 267 - Trump University Commercial Real Estate 101

The Right W a y to Sell for Maximum Profit

number of eyeballs, offering you the highest probability of
getting the price you ’ re after.

How to Research Your Buyer

You methodically picked the best broker. Now, with offers coming in,

it ’ s time to pick the best buyer. The first step is to research that buyer.
The most important question to ask is, “ Is he a proven closer? ”
More specifi cally: “ How many deals of this size has he closed in the
past? ” This will give you an indication of the buyer ’ s experience and
the probability that he will close on your deal, too.

The next key question is to find out where he will get the money
for the down payment. It ’ s smart to require proof of funds . That means
that the seller will show you a letter from his lender, indicating that
the down payment funds are in fact available. The last thing you
want to have happen is to take your deal off the market, get to the

closing, and find that the buyer ’ s financing cannot come together.

Some investors are pretty creative: I know a guy who routinely
goes right into closings and tells the seller that he doesn ’ t have enough
money to close. He then says the seller has a choice — he can either
give him a second mortgage for the balance needed, or he can walk
away from the deal.
This is a total psychological ploy on the buyer ’ s side because he
knows by the closing that the seller has already spent the money in his
mind. He will already have plans to buy a second home, new car, or
maybe another property. The seller is psychologically vulnerable at
this point, and the buyer knows it.
The majority of the time, the buyer gets the second mortgage!
Sure, the seller is not happy, but he ’ d be even less happy if both the
deal and his dreams fall through. Once in a while a seller will tell
the buyer what he can do with his lack of funds , and the deal ’ s off. That ’ s
when the buyer makes a phone call and miraculously comes up with
the money.

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