Things still progressing – but nothing is final yet

Well I’m happy to report that there everything has remained positive up until this point and I’m just hoping/praying that it stays that way.  We ran another ad this past weekend and the response wasn’t that great.  We got a few calls but it doesn’t seem like anyone is too serious right now.  More importantly, the whale that we’ve been in communications with is still alive and we are waiting on a “letter of intent” to be drafted up and sent over to him; this should happen sometime tomorrow or the day after.

Basically the letter just states what both parties intend to do before an actual contract is drafted up.  It needs to be done because once the decision is made to move forward, attorneys need to be hired to do the paperwork which can cost several grand.  Obviously you don’t want to spend that money and get burned afterwards, so the letter of intent is just another protection from that happening.  Once the letter is signed by the investor, I will feel much better, but as of right now he can still flake out.

Needless to say, I’m praying to God that he is the real deal and has no intention of bailing on us.  If it does happen, it looks like his first purchase will probably be sometime in January, which means we’ll get our first commission towards the end of January or early February.  The good news is that this is not a 1 time buy and that’s it.  The stipulation of the contract is going to have a 1, 3, and 5yr exit and he is being locked into buying a certain amount of properties per month.  So if he gives it the green light, it means we should be making a pretty penny over the course of 2011, at the bare minimum.

Anyways, there is no need to get excited or get our hopes up.  So much can happen between now and then.  The only thing we can do is remain optimistic and hope it all pans out, because both my business partner and myself need it to very badly.  We also have no clue if our commission is going to get cut either and we are under the assumption that it might happen so we are preparing ourselves for that as well.

By the end of this week, we should have a letter of intent signed by both parties, and once we do I’ll feel 10 times better.  For right now, I’m trying not to over think anything.  My business partner has a tendency to be pessimistic about everything and he is thinking something might happen to fuck up the deal.  The reason why he feels this way is because we’ve come so close so many times and every time it didn’t work out.  After awhile you just start to expect failure because you generally fail so many times before you succeed.

I told him that the statistics are in our favor because between the two of us, we’ve had so many different business opportunities not work, that eventually we have to stumble across something that does.  If we just look at it in terms of sheer numbers I’d say the momentum/luck is in our favor.

I’ll keep everyone updated.

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