On this particular deal, we tried to arrange a wholesale, which turned into a potential joint venture partnership. From that partnership we were exposed to different negotiating tactics and creative financing. When one strategy didn't work we tried a different one, following our potential joint venture partner.
It as thought me how to look at one deal in multiple different ways. As a Buy/Rent/Hold to a Wholesale and so on. It was the same with financing. By that time we had always purchased our property by personally qualifying for the mortgage and providing the down payment which had being 20%. In this particular deal the property was an eight plex so we would have needed 35%.
The first thing we where exposed to was that the vendor was willing to hold a VTB for a portion of the purchase price. In the eye of the bank, they still would only provide me with 65% but from the purchase price less the VTB lowering significantly my deposit. Unfortunately at the time we didn't have access to that amount of money. Which made us entertain other financial strategies.
In the end, we ended up holding the property under contract for nearly four months and we weren't able to come up with a suitable solutions in a timely fashion and we ended up cancelling our contract. A week later, I was discussing the deal with a fellow investor and on the spot he offered to purchase it from me as a wholesale deal.
Since we were concentrating on purchasing the property we had stopped considering wholesaling it. Had we kept that as an option all along; we could have wholesale it out.
"When in doubt, Wholesale it out" - wise words from my trainerWell I can now say, that is one lesson we have now learned.
You may enter into a bad deal, or struggle with a deal just to have it dissolve in your hands unable to close on it. If you take the time to learn the lessons that deal as to offer, it was well worth your time.