I suppose you could consider this to be an update post of sorts. I had agreed to let everyone know what happened with my buyers from this post from a few weeks ago: Requiem for the Self-Employed Homebuyer.
In a nutshell, I was working with what in previous years would have been considered "perfect" buyers(780 FICO scores, 20% down, $500,000+ purchase price), but they were turned down by FIVE lenders because they had only 16 months of self-employment, despite being in the same field for about 10 years. 
The fifth lender seems optimistic,but he was unable to get it done, despite more time passing. There were also five other offers that were turned away by the seller during the past two months (three others initially when we made ours, along with a lowball and a recent cash offer).
I am VERY HAPPY to report that we are closing in the next couple of days (probably Monday) and the lender expects funding to happen on Tuesday.
That will be one of the best Tuesdays I have had in awhile!
So what happened? Well, we ended up extending things so long with the sellers that the buyers managed to get their 2008 tax returns completed. Since the numbers matched up with their P&L statement that they had provided before, the fifth lender (sixth attempt) was able to get it done!
What are my personal lessons from this transaction?
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Have patience - This required me to pull from my last reserves of patience
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Be nice - I know this may sound a little bit.....overconfident, but I am convinced that we won the initial negotiation AND managed to keep the sellers on board because they simply liked me and we had a good rapport
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Be persistent - I literally hand-carried the buyer's loan file to multiple lenders in an effort to find someone to take this loan, which I considered a worthy risk to any bank
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Keep an open mind - I ended up learning about several different loan products that I was previous somewhat unfamiliar with, including "hard money" loans and wraparound mortgages (I was determined to find something that would work for my buyers)
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Be flexible - In order to make it work for the sellers, I had to give a slight commission concession at one point. I would always rather give a little to gain a lot!
Looking at this list now, I realize that these lessons/tips apply in ANY transaction. We work in a "people" business. As such, it's important to maintain an attitude that is conducive to getting things done, plain and simple. I have always viewed it as my job to help my clients to get the home that they really want. In fact, we very rarely lose a sale once a contract is in place. For me, that is the essence of success in my business.
Thanks for reading!
P.S. Speaking of Tuesday, be sure to tune in and listen to me and my co-host Ken Cook every Tuesday at noon Eastern (11am Central, 10am Mountain, 9am Pacific) for "Twitter Tuesday", which focuses on social media and its various applications in business: http://blogtalkradio.com/jckc
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Fantastic - we have a similar transaction with a minister. Three lender turned down the deal. The fourth has it approved with some minor underwriting conditions. It was all about patience and pushing the deal forward where we could assist.
It's a great feeling to get a difficult file to the closing table... Congratulations, Jason.
Jason- Congrats! I know that it is tough these days but that is mostly because a lot of lenders do not know what the new rules are and don't ask the right questions, that is why I am happy that Jeff Belonger is our preferred lender now. He has saved a few deals already in just 2 weeks!
Send the lender who finally closed the file over may way, Jason. Still wondering which one of two banks is providing the loan docs for a deal that is scheduled to close ... oh ... TOMORROW.
Financing in 2009 aint for sissies.
Jason... congrats... curious, what are the final terms though. Are they putting 20% down or 25% down? As I mentioned, I can actually do a NINA with 25% down, but I am not licensed in Tx and either was out investor. But overall, it must be a great feeling.
Love that picture Jason. I had a deal get denied recently (2nd fall out due to financing for my sellers) and then turned around and get approved! Bizarre-o, tenacity pays off for sure! KM
Ryan - Patience and persistence seem to be the keys to getting stuff done these days!
Jesse - Indeed it is. This might be worthy of a bottle of the "good stuff". ;)
Katerina - Thanks! You hit the nail on the head. As a matter of fact, I had discussed this deal with Jeff a few weeks ago in order to get his thoughts. As you can see from his comment, he is not licensed in Texas at this point, but he was very helpful, as always.
Paul - I think I should have used your last sentence as the title of this post.
Jeff - They are putting down 20%, some of which was gifted from the buyer's dad. And yes, it is a really terrific feeling!
Kristin - Thanks for making me feel justified for taking that picture a few minutes ago. Just did it on a whim, but I thought it summed things up nicely. Congrats on your tenacity!
Jason, that is wonderful and a heck of a payday! Too many agents give up halfway through the process. At the same time our lending criteria has basically changed to a big fat "NO".
I don't like it. Our local mtg broker says it will be a very long time before we see stated income loans again. If ever.
Congrats! Later in the rain~Deb
Deb - I agree with you about the lending criteria, which seems unduly tight for the self-employed now. I do however think that stated income loans will return someday, although it will likely be several years down the road.
Congrats Jason don't you love when a plan comes together? I sure hope stated loan comes back someday; otherwise I sure know a lot of Realtors that will be crying... ~ Kim
That is wonderful. I love to hear a happy ending!-Dinah Lee
Jason, that is great that they are going to close! Great tips to help us be successful during a transaction!
I would always rather give a little to gain a lot!
Hey Jason,
I agree with your philosophy!
By the way, congrats on being persistent. I suspect some agents would have thrown in the towel after three strikes. You can be proud of another job well done.
The self employed of America is going to continue having this problem for years. Sounds like a great buyer and Im glad you got this done. Now lets party!
Jason, Congrats on your persistence finally paying off! One of the harder aspects of this market is realizing that, because we're in the people business, each person's situation is unique...meaning no more cookie-cutter financing or deals.
Jason-congrats and yes we have been in some similiar situations but with patience..and communication on most occassions..things will work out at the end! You just gotta keep keeping on!
Jason, Congrats to you for the closing and your persistence in getting it done. I'm sure the buyers and sellers are grateful and relieved.
Jason, it's amazing that this ordeal even occurred and I have to agree about your "lessons" although with you, I know they are principles that guide you every day!
BTW thanks for the very nice comment in the Diary of a Realtor Post about my recognition in the recent "MY Passion is..." contest!
Great news Jason. We all have to keep trying and think outside the box
Jason: I love your lessons - "A person with a flexible mind that remains open, is persistant, but patient, will win the battle. Isn't what you said????? Great Job - We must, we must, we must continue to look for solutions and you my friend proved that it can be done....... Thanks for the update...
Jason,
Thank you sir for the update and also the lesson with the 5 bullet points. Congratulations my friend.
Jason - That's so funny. As soon as you said 16 months.. I said to myself.. Maybe by now they'll qualify. Then I read further down!
ha, good for you & for them!
Jason...Absolutely! I tell my agents all the time to not give up and be persistent. I love how you "hand delivered" the buyers package to other lenders! It shows you really do care for your buyers and were WORKING for them! Great post!
Congratulations to all of you. Buyers, Seller and YOU! Sounds like you just kept at it and kept everyone informed along the way and earned their trust. It's fantastic that it worked out just the way it should have. Have a Happy Tuesday and hopefully write something new along the way.!!
Congratulations TCT!!!! That's wonderful news - for all concerned. Just goes to show that when we don't just throw in the towel some wonderful things can happen.
Perseverence + Patience = Success!
Good work Jason! Now you'll have ANOTHER Fat Tuesday!
It's great to hear this. It is a new era my friend, but with a scenario like this...persistence and good attitude will get you far. congrats on sealing the deal. You DA man.
Jason, congratulations to your customers on getting the house they wanted, you for your persistence, patience, kindness, creativity and determination. In reading this my mind kept going back to, does the listing broker appreciate him for all he is doing?
Congratulations, Jason! You worked hard for this, so I'm glad there's a happy ending... :)
That is exactly how it should be done now...extend that contract until they have 2 years worth of tax records!
Glad to hear that the persistence paid off, congrats!
Kelly - In this case, the selling broker is ALSO the owner. They definitely appreciate it!
Excellent advice Jason and congratulations on your sale - it seems we need to be much more patient these days
What was a slam dunk some time ago became a huge learning experience, that you and your future clients will benefit from. The process stinks but the outcome sounds fantastic. Springboard off it and make the most!
Steve - I just got the HUD this evening! Sweet!
Sometimes it is a long and winding road to completion, but slow and steady will usually pay off. Congrats on sticking with it until you received the answer your buyers needed to hear.
Going the extra step to find the deal that you know is there is the way we all need to do business.
Contgrats
Tony
Hi Jason! Wow...you are an exceptional broker and agent and you created a win-win for ALL parties!
Congratulations on closing. Having 2 years history is pretty important. I guess its good that it worked out after all, even though it took some time.
John - In this case, they only had one (15 months), but they were able to get it done anyway, so I am happy! I got the HUD already.