GM is selling Hummer to mystery buyer

[Hooch]

A few months ago I was working the numbers on one that was in real bad shape. Heavy termite damage on one side of the house, heavy rot on the other. It's ARV would be around 90,000 and would need around 40,000 in repairs. The lot cleared with no house on it would be worth 16k and removing the house costs around 10K around here.

So I go at the angle that I don't think there is any way to rehab that house although my intention was to rehab it. I tell her no investor would ever consider rehabbing the house due to it's extensively damaged condition so the issue I have right now is that I can not pay any more than 1k for it.

She started telling me this story about her daddy and how he is in very poor health. How she hates to see that he made such a bad investment. I said don't worry about it. Everyone makes a bad investment from time to time. I tell her I have on many occasions. Then she tells me about another one he has and how it is worth at least 100K. I say well, see, he didn't always make bad investments.

She said can't you just give me 6k for it? I stuck with my number and explained logically, If I gave you 6k for it, and I have to tear it down for a cost of 10-12K than what do I have left? She said if you tore it down for 10k and paid me 6K than that would equal the value of the land. She is getting nasty at this point. Her moods were swinging back and forth throughout the entire conversation. We were going back and forth, pretty much arguing about it. Normally I am really nice to people I buy from but this redneck girl was incredibly irritating. I explained to her that I am an investor and why in the world would an investor buy property for exactly what it is worth and not be able to make a penny on it. I asked her, what exactly would be my benefit from doing that. You've got to understand, I have to make money.

She then said OK, how about 3K. I paused and said sorry, no can do. At this point the girl had already pissed me off and 1K was all I was doing. She at this point started crying to me and telling me how she wanted to put the money for this house to pay for her daddy's grave. Now I'm feeling bad so I start being nice to her again and just start nicely explaining how I can't do more than 1K. Well, she said OK and that we will meet out there to sign a purchase agreement, but she has to talk to her daddys lawyer first just to make sure that she can sign for her dad since she was the power of attorney. I started getting a feeling now that she was lying and that she was just trying to keep this deal on the table while working on finding another buyer. The next day when we were supposed to meet she called and said that the lawyer was in court all day and she can't get a hold of him. Then later saying that she still can't get a hold of him.

Now I'm getting pissed because I strongly feel she is stringing me on. I figured I have to do something now and force this sale since I could tell she is looking for a buyer. I call her up and ask her who the lawyer is because I will call him. She stumbled around and made up a name. I looked it up on the internet as she said it and their did not appear to be a lawyer of that name in this town. I called her on it and she said that there is and all she needs is until the end of the day and we will meet and she will sign. Within a couple of hours she called me and said I found another person to buy that house for $500 bucks more than you you mother f**ker.

I always stick at the offer that I give but this is an example of one time where it came back around to bite me in the rear. I definitely would have given her another $500.

[fdjake]

Hooch,

As far as residential rentals.....

I DID the residential rental thing FOR YEARS. I found it to be nothing but a never ending stream of BULLSH*T.

The turning point for me came from an older investor that I had coffee with every morning.  He started out with residential rentals...His advice to me was....GET OUT!!!  Nothing but BULLSH*T and headaches.  He said the REAL MONEY was in commercial real estate.  He mentioned that he had built a self storage warehouse in Florida and it was a CASH COW for him.  He told me to sell the 3 families I had and asked if I owned any commercial LAND???  I told him I did.  He went out to the site with me and put me in touch with TRACHTE....I built the first one and within 5 to 6 years had another one up and running.  Then SOLD EVERY SINGLE ONE of my residential units.   The day I closed on the last one was one of the happiest days in my life.  NO more rehabbing trashed apartments, no more sh*thead tenants, no more midnight phone calls, no more never ending repairs, no more never ending maintainance, no more screening tenants, no more WATER BILLS, NO MORE APLLIANCE REPAIRS, NO MORE GAS SHUT OFFS, ELECTRIC SHUT OFFS, the list goes on and on!!!

BEST MOVE I EVER MADE........My life went from 100 mph to 10 mph but with 10 times the NET in my wallet!!!

SELF STORAGE in my area absolutely CRUSHES residential rentals.

It isn't even CLOSE.

BEAUTIFUL, BEAUTIFUL BUSINESS!!!

That's why I have FOUR separate facilities now and NOT a SINGLE residential rental...10 times the profit and 10,000 times less BULLSH*T!!!!

And I KNOW EXACTLY what the numbers are......

I'm just not giving them to YOU!!!

You seem happy with your residential rentals....GOOD FOR YOU!!

My recommendation is to STICK WITH IT!!!  You don't want to get involved in self storage.  You're making money dealing with tenants....ENJOY IT!!! 

Leave the self storage to me!!!!

[Hoosier4life2005]

Great story Hooch... lolz.  Sorry about you missing out on the deal though, but it was funny to me.

A few months ago I was working the numbers on one that was in real bad shape. Heavy termite damage on one side of the house, heavy rot on the other. It's ARV would be around 90,000 and would need around 40,000 in repairs. The lot cleared with no house on it would be worth 16k and removing the house costs around 10K around here.

So I go at the angle that I don't think there is any way to rehab that house although my intention was to rehab it. I tell her no investor would ever consider rehabbing the house due to it's extensively damaged condition so the issue I have right now is that I can not pay any more than 1k for it.

She started telling me this story about her daddy and how he is in very poor health. How she hates to see that he made such a bad investment. I said don't worry about it. Everyone makes a bad investment from time to time. I tell her I have on many occasions. Then she tells me about another one he has and how it is worth at least 100K. I say well, see, he didn't always make bad investments.

She said can't you just give me 6k for it? I stuck with my number and explained logically, If I gave you 6k for it, and I have to tear it down for a cost of 10-12K than what do I have left? She said if you tore it down for 10k and paid me 6K than that would equal the value of the land. She is getting nasty at this point. Her moods were swinging back and forth throughout the entire conversation. We were going back and forth, pretty much arguing about it. Normally I am really nice to people I buy from but this redneck girl was incredibly irritating. I explained to her that I am an investor and why in the world would an investor buy property for exactly what it is worth and not be able to make a penny on it. I asked her, what exactly would be my benefit from doing that. You've got to understand, I have to make money.

She then said OK, how about 3K. I paused and said sorry, no can do. At this point the girl had already pissed me off and 1K was all I was doing. She at this point started crying to me and telling me how she wanted to put the money for this house to pay for her daddy's grave. Now I'm feeling bad so I start being nice to her again and just start nicely explaining how I can't do more than 1K. Well, she said OK and that we will meet out there to sign a purchase agreement, but she has to talk to her daddys lawyer first just to make sure that she can sign for her dad since she was the power of attorney. I started getting a feeling now that she was lying and that she was just trying to keep this deal on the table while working on finding another buyer. The next day when we were supposed to meet she called and said that the lawyer was in court all day and she can't get a hold of him. Then later saying that she still can't get a hold of him.

Now I'm getting pissed because I strongly feel she is stringing me on. I figured I have to do something now and force this sale since I could tell she is looking for a buyer. I call her up and ask her who the lawyer is because I will call him. She stumbled around and made up a name. I looked it up on the internet as she said it and their did not appear to be a lawyer of that name in this town. I called her on it and she said that there is and all she needs is until the end of the day and we will meet and she will sign. Within a couple of hours she called me and said I found another person to buy that house for $500 bucks more than you you mother f**ker.

I always stick at the offer that I give but this is an example of one time where it came back around to bite me in the rear. I definitely would have given her another $500.

[HoldAndBuy]

That's a hard situation. I wouldn't know whether to feel sorry for her or not. Some unrealistic people think you're there to swoop in and fix everything for them, and they get angry when you can't do that.

A few months ago I was working the numbers on one that was in real bad shape. Heavy termite damage on one side of the house, heavy rot on the other. It's ARV would be around 90,000 and would need around 40,000 in repairs. The lot cleared with no house on it would be worth 16k and removing the house costs around 10K around here.

So I go at the angle that I don't think there is any way to rehab that house although my intention was to rehab it. I tell her no investor would ever consider rehabbing the house due to it's extensively damaged condition so the issue I have right now is that I can not pay any more than 1k for it.

She started telling me this story about her daddy and how he is in very poor health. How she hates to see that he made such a bad investment. I said don't worry about it. Everyone makes a bad investment from time to time. I tell her I have on many occasions. Then she tells me about another one he has and how it is worth at least 100K. I say well, see, he didn't always make bad investments.

She said can't you just give me 6k for it? I stuck with my number and explained logically, If I gave you 6k for it, and I have to tear it down for a cost of 10-12K than what do I have left? She said if you tore it down for 10k and paid me 6K than that would equal the value of the land. She is getting nasty at this point. Her moods were swinging back and forth throughout the entire conversation. We were going back and forth, pretty much arguing about it. Normally I am really nice to people I buy from but this redneck girl was incredibly irritating. I explained to her that I am an investor and why in the world would an investor buy property for exactly what it is worth and not be able to make a penny on it. I asked her, what exactly would be my benefit from doing that. You've got to understand, I have to make money.

She then said OK, how about 3K. I paused and said sorry, no can do. At this point the girl had already pissed me off and 1K was all I was doing. She at this point started crying to me and telling me how she wanted to put the money for this house to pay for her daddy's grave. Now I'm feeling bad so I start being nice to her again and just start nicely explaining how I can't do more than 1K. Well, she said OK and that we will meet out there to sign a purchase agreement, but she has to talk to her daddys lawyer first just to make sure that she can sign for her dad since she was the power of attorney. I started getting a feeling now that she was lying and that she was just trying to keep this deal on the table while working on finding another buyer. The next day when we were supposed to meet she called and said that the lawyer was in court all day and she can't get a hold of him. Then later saying that she still can't get a hold of him.

Now I'm getting pissed because I strongly feel she is stringing me on. I figured I have to do something now and force this sale since I could tell she is looking for a buyer. I call her up and ask her who the lawyer is because I will call him. She stumbled around and made up a name. I looked it up on the internet as she said it and their did not appear to be a lawyer of that name in this town. I called her on it and she said that there is and all she needs is until the end of the day and we will meet and she will sign. Within a couple of hours she called me and said I found another person to buy that house for $500 bucks more than you you mother f**ker.

I always stick at the offer that I give but this is an example of one time where it came back around to bite me in the rear. I definitely would have given her another $500.

[allagash]

I always stick at the offer that I give but this is an example of one time where it came back around to bite me in the rear. I definitely would have given her another $500.

That's how they invented copper wire....

Two guys fighting over a penny.

-Mike

[PositiveOutlook]

Yeah, but that penny was worth ALOT more back then...   

[allagash]

fdjake,

nice Trachte post...

can't beat a systemized, under one roof...approach like that, (especially with your streamlining of the process).

thanks for the insight.

-Mike
http://www.youtube.com/watch?v=GgZsamFWyBI

btw...YSI, (U-Store-It), caught my attention recently....but didn't like it's candlestick wicks, (shadows).

[fdjake]

Hooch,

My hat's off to you man!!!   And I not breakin b@lls here.

That's a great story for everyone to read.

This is a VERY COMPETITIVE BUSINESS....If you're GOOD at it (like you)
it becomes a common practice to get the deal YOU want.

Your example is a GREAT LESSON in stepping back from the negotiations and keeping your eyes on the BIG PICTURE.

For those reading Hooch's example he said the house needed $40K worth of repairs and would be worth about $90K. 
Arguing with this woman over basically $2000 cost Hooch $48,000!!!!

I'm not knocking him for this...He knows what happened and was man enough to relate the story to us.  I completely understand what happened here.  I've done it too.  You get so wrapped up in WINNING the negotiation, you forget what the hell you're there for in the first place.  MAKING MONEY!!!!

Great story and an even better lesson!!!

[Hooch]

LOL, you're right. I would definitely have given her more money. I was just a little to focused in this case on hitting a home run.

Relating to the rentals, I never said I like them. Just that around here they are good money. I deal primarily with junkers and a few flips here and there.

The low income area junkers are tied with lots of continual drama. Last week I was meeting code enforcement out at one of my triplexes and my german shepherd and I popped out of the truck to go up to the house. Next thing I know a big pit bull tore across the street and locked down on her rib cage. My baby yelped. I yelled NO and was about to kick the dog off and it let go and slowly walked back across the street to it's house. A person in the back yard who was watching the dog had a big smile on his face and never even called the dog back.

I checked my dog over and didn't see any blood or damage to her. A little puff of hair on the ground but that was it. I figured she yelped just because it scared her. Later the next day she was licking herself and I reached over to give her an itch and my finger completely fell in a hole about 2 inches in diameter. Inside that deep hole about an inch or two back was the outside of her rib cage and mussel tissue. So I rushed her over to the emergency vet and they stitched her up. They said the hole looked that bad because the dog grabbed her and yanked backwards ripping her skin off of her mussel creating a pocket.

I then called the animal control  to go out to this crack house and do something about that dog before it kills some other dog. My dog is big. Much bigger than that pit bull. If that dog latched on to a medium size dog it wouldn't stand a chance.

There is always a bunch of people there usually drinking in the back yard with all of the pens of dogs that are in it. They have many pens in the back yard and it looks like they are breeding the pit bulls. Usually a bunch of guys in the back getting drunk, selling drugs and blasting anti white comedy.

The owner of the house I have met and I had no idea who's dogs they were. The owner is a nice older black guy and I still haven't figured out why he has all of these younger guys hanging out in the back yard. Probably his kids or renting to them.

It turns out that the dogs are the dogs of the owner of the house and the guys in the back yard were paid by him to clean the cages. They let that dog out to clean. The animal control guy felt sorry for the old black guy since he was not the one who was supposed to be in control of the dog so he only gave him a no proof of rabies shot ticket.

I now have a $400 bill from the emergency vet, another $150 from my vet because she ripped the stitches out. And am facing another again because yesterday she ripped the stitches out again. (yes I have had one of those head things on her. She is persistent. I take it off for her to eat and within seconds she has ripped them out) Then after this 3rd time of stitches I will be paying to have them taken back out.

When I go over there to hand over the vet bills that I already know he won' t pay I have a very high likelihood of getting jumped so I will have to have my 9mm on me not concealed so they all see it in my holster (which you can do in VA as it is an open carry state). I could go with a cop but I'm more of one of those types of people who likes to stand his ground and not be a sissy who had to have the cops with him. Do remember that I have to go back to this place on a regular basis because it is right next to where I put my put my rent hand out every month. I also have to do this in a peaceful manor because if not I can be sure that I will have property damage to deal with. I'm a big guy which would be a little bit of a deterrent and I think the gun will keep everyone thinking clearly.

Drama, Drama, Drama with the junkers and sometimes you get sucked into the drama like in this case.