I met Gary, manager of the Great Lakes REIA (Big Investors Club in Cleveland) one of the times I went there. We had good communication and kept in touch, and in fact we started a weekly routine.
You know - market status updates, mutual assistance options, etc.….
As part of his club, Gary does a lot of information selling projects today, but in his past he was an active and successful broker and because of his network of connections from the club he receives referrals for transactions to date.
And when he comes to a deal that needs to be closed in cash, he usually turns to me because he knows about my work with Israeli investors (and also doesn't really have time to deal with it).
In one of our September 2019 conversations, Gary contacted me and told me about one of his employees (I won't mention his name, you'll understand why). You could say he had a little fun with the wholesaling business and bought some apartments he wanted to sell.
That guy in general holds Day Job and, to put it mildly - was not very successful in the sale of the property and got stuck with several apartments he was already pressured to get rid of.
Of course I said to myself "why not" and picked up a phone.
The guy was very nice, and the property he was most urgent to sell was on 232 East Street, in the area of Euclid, an apartment that needed a renovation of about 22K.
At first glance, it felt like it could be a great deal, but when I did the right math and realized I would need the apartment to invest in 62K and the price was higher than that, I realized it wasn't going to happen and I had to politely refuse.
It sucks because it was a familiar one with a good motivation to sell a great property that was just in my investment criterion and the deal melted away but I did not completely forget about it…
While we didn't make a deal together, we still kept in touch as I gave him tips on how to move from day to day to work in the field, and we thought about all kinds of options how to work together and help each other,
So I may not have found a deal, but found a new friend in Cleveland
Then the Corona arrived …… ..
About two weeks ago, I received an email with a request for a phone call from the seller. When I came up to talk with him he tells me that he went with his wife to Brahms and when he came back not only did he go into solitary confinement, it turns out he was also diagnosed with the virus.
Apart from the shock I experienced and saddened to hear it from him, he also shared with me that now his financial situation is human because he has effectively stopped working and his payments are burdensome to him and he has contacted me with one request "get me out of the property".
This time he pointed out to me that he understands that a buyer of property now expects significant assumptions because of a crisis and a lot of uncertainty. We quickly reached agreement on the price and closing conditions. And I actually got this deal for my investor at 52.5K when the pre-crisis property value also reached 90K
So sense 1: Whether you are American or Israeli, and know for sure that you need to sell, you should try to reach understandings as soon as they hit the iron while it's hot. Because when we have a problem, time can only make it worse, not to mention if it is a black swan in the form of an international epidemic.
Mind 2: Even if we don't live in the US and work there on a regular basis, there is no substitute for maintaining and nurturing quality human relationships. Don't look for deals, make connections!
And my investor? It was the second property I bought for him, and I found at least one good reason to enjoy the current situation….