This story came up in the mentormind session so here it is Barak Duanias again time. Real&q…
This story came up as part of the Mentormind session so it is again Barak Duanias
time.
Real estate is a business for patient people. Really patient. Doing good and right takes time. Time and luck. "And" big "is possible, only they usually come separately. Annoying huh? Looking for a good deal takes time, getting to know people takes time, building trust. Getting to the point that the same person is willing to sell or buy it at all can be a long story. Buying a property takes time. Tests, title, loans. The soul goes out sometimes, but when a deal goes out, or from mom, what fun. Especially the successful ones. So here is an example of patience that has paid off:
64 Monroe St., Brooklyn -
In the corner of Monroe and Franklin St., a good area for anyone who knows, stood an abandoned house for years. I knew him from the first few days I started walking around Brooklyn already on 2007. When we started dealing with investments and renovations and flip-flops it was one of the first homes we tried to purchase, and we decided to look for the landlord. We also knew that there were many who kept an eye on the house because of the location and condition of the house so there was competition. Excellent. Most fun to win in the competition.
Looking -
An online search provided a number of potential phone numbers and addresses and the contact task began. Phones have always worked for me. I have no problem sitting for hours and dialing, I have no problem being disconnected inside, I have no problem being told "no", but if anyone is interested, it works great. It's also faster than going door to door and screwed. A complementary action was sending letters. Generally for the most part, personal to those we have emphasized. So I started calling them, a lot but without success, so I switched to personal letters. Once a week or two I sent a personal, polite letter describing who I was and that I was interested in purchasing the property. Like this for months on end. I'm not exaggerating. Months.
First success -
one day phone A young, nice girl is heard - "Can I talk to Tal? You have been sending letters to me for a long time, we have reached the point that we are ready to sell and we wanted to meet." I was as excited as a little boy. It really worked. The next day we met. A young couple whose house belongs to his mother. We discussed who and what and it turns out that there is competition again. They have already received a purchase offer and are considering their options. Legitimate, but I want the deal so I immediately said "I want you to leave here with a deal that will make you not think twice. That you will not look for another deal. That it will close here and now. What is the highest offer you received?". I didn't believe the answer. "25 thousand dollars" (the poet's clarification - the meaning was that they would have 25 thousand dollars left after paying the debt to the bank they had, several hundred thousand dollars). Miserliness is a disaster! That's how you lose deals! At this point the market had already started to climb and it was clear that the house would sell renovated for a lot of money. I immediately replied "I offer you double - 50 thousand dollars. Does that close the matter?". That closed the matter. A few more days pass, a lawyer draws up a contract, we signed the relevant paperwork and we can move forward with the deal.
Small heart attack -
The next step was a process with the bank to receive relevant paperwork for closing, and banks like banks, certainly in that period after the collapse when everything was one big mess and no one knew from right to left, they are slow and tiring. So wait again. months. There is not much to do but wait and wait and hope for the best. While we are waiting I get a call from a guy. I do not know and do not recognize. "Listen Tal, we don't know each other, but I know you intend to purchase the property, just know that I was contacted by the bank and they intend to sell her debt, and if that happens you will not be able to close the deal. I am calling to warn you, I can help, but it is your decision ". Heart Attack. To lose her job like this after everything we've done?
Lucky -
Losing a deal after everything we have done is by no means acceptable !!!! After a heart massage and a glass of cold water I turned to find a solution. I politely declined the offer of help, talked to Shlomi (partner) and we turned to a guy who specializes in purchasing loans from the bank to ask for his help. Asked which bank, and immediately replied "You are lucky, the deputy director of the bank is a friend from school, I already pick up the phone to him, do not worry, the loan will not sell to anyone but you". Welfare breathing. Why welfare breathing? Because if we have a seller and we have a bank that is willing to sell the loan we can complete the deal, and that's what we did. Negotiation process with the bank closed the debt corner and we purchased the NOTE (loan), transfer of ownership from the seller closed the title corner and we have a new project. You can start renovating. Sounds good, doesn't it?
Heart attack volume 2 -
almost. When we arrive at the house, which you remember has been an empty ruin for years, the house is clean and clean. Empty, ruin, but clean. Someone invaded the house. Removing intruders from New York homes can take months. Years. We missed a beat. Of no interest at all after so long to be stuck for months now in some Avikshan process. Luck is also played in our favor. The intruder, in fact, the intruder was not home when we arrived, we locked and blocked the property immediately so that she could not return, and made sure that someone would visit the property regularly to prevent further surprises.
Almost injured -
After this incident I decided to regularly visit the property, which was in terrible maintenance condition. The walls crumbled, etc. On one of my visits I go down the stairs to the second floor for the first time, the staircase collapses, I fly forward and land on the winding that survived the collapse. The staircase itself collapsed two floors and ended its life in the basement. Two days later I could not find my glasses. My sun, but in a moment of enlightenment I remembered, returned to the house and found them among the fragments in the basement, a reminder of what would have happened to me if I had not flown forward.
Business -
Finally, the truth is that you can start renovating. The renovation was conducted relatively quickly and efficiently and the property went on the market, was sold at an excellent price and the deal was completed. Anyone want to guess what "relative speed" is? You guessed it - months, but it was over and there was no shortage of smiles at this point.
Summary:
"Patiently make you a deal"
The property was purchased for $ 574, renovated and sold at 1.8 million. Successful deal on any scale, but let's go back to the times:
Familiarity with the property began in 2007
The property search started at 2011
The transaction for the purchase - October 2012
Closing - January 2013
Renovation Sale - March 2014
It was worth the wait ? Yes. But need patience. Good luck. And a lot of both.
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