Wow, I had some great interaction directly with a seller that I feel is important to share with others involved in Portland real estate investing.
[dropcap color=”color-default” font=”arial” style=”normal” size=”scmgc-3em”]1[/dropcap]st I got a call from Bill, who was referred to me by a friend. Bill is somewhat of a motivated seller. When I first talked to him over the phone, he started telling me of a rental that he owns not too far from Intel campuses in Hillsboro. He’s in the process of evicting the tenant.
He starts telling me that he owes about $85k on a place that is worth no more than $120k. Not too exciting, as his $1100 monthly rent, does not provide any true cash-flow above his $800 monthly payments, taxes and insurance. We only talked 2-3 minutes real estate at all. I began asking him general questions, that got Bill talking about things in his life that have nothing to do with his rental or real estate at all for that matter.
By the end of the 20 minute phone call I knew all sorts about his life. He was traveling the following week to Vancouver BC and Seattle area to help with a civic-service organization that he has been active in for 38 years. I specifically probed further in this area, as I could sense it was his true passion and this lead him to open up to me.
This made it very simple to find out more about his life, finances etc. He retired about 10 years ago. His daughter took over the business that he owned in Tualatin that still occupies a building that he owns free and clear. As tenant in his commercial building, Bill’s daughter pays him a nice monthly income that affords him to live very comfortably. He owns his home free and clear. AND… next door to the rental we spoke of originally, he owns another identical rental, [highlighter color=”blue-vibrant” ]except this one is free & clear.[/highlighter]
After setting the stage above, it was very simple for us to plan a face to face meeting after he returned from his trip.
[dropcap color=”color-default” font=”arial” style=”normal” size=”scmgc-3em”]2[/dropcap]nd We met at a Sherry’s restaurant last Friday for more of the same.
This meeting was not to analyze the opportunity. This meeting was to further my relationship with Bill. We scheduled 45 minutes for this meeting. A full 40 minutes of this meeting was filled with Bill talking further about his life, lead by a few key questions by me. This is not rocket science once you get the correct mindset. So Bill continued more about his civic-service organization, his wife, all 3 of his adult children, his grandkids and more.
With 5 minutes left in our scheduled meeting, I decided that we should talk a little about the properties. As I did that, he started asking me about my kids, that’s how comfortable and in-the-flow Bill was feeling at this point. We went about 5 minutes overtime, as I reviewed my original notes about the property with Bill and added to notes and understanding about the two properties.
I told him that I would do a drive-by of the properties and get back to him this week to talk further.
People tend to do business with those people that they know, like and trust. This is true in Portland real estate investing as in most any transaction.
One of the most famous and certainly simple books to read on this subject is “How To Win Friends and Influence People” by Dale Carnegie. This is a must read for everyone and I highly suggest it to all. Even if you have read it a few years back, read it again and review it often. It is great input not just for business, but for life in general.
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Whether or not I end up doing business with Bill, this is already a successful relationship for me. I have further expanded my sphere of influence, as I suggest is the premier form of marketing in creative real estate.
Regarding the Properties
My initial thoughts are to help him unload the leveraged property by selling it to me at about what he owes so that I can break even or hooking up with a realtor to sell it retail.
THE KEY is that I will help him get rid of the leveraged property, so that I can then purchase his free & clear one with seller financing that provides a clear positive cash flow.
[box color=”blue-vibrant” type=”round” icon=”star”]I may then wholesale this property, clearing $7,500 from another local investor who is looking for this type of Portland real estate investment.[/box]
To Your Success!