wildwestinvest! 19 Report post Posted September 17, 2012 I signed up 2 good deals in the past few days! My first 2 deals!!! Yeehoo! Ok, one is unfortunately 1.5 hours away, but it's a steal (read: pure option) on a great 4-unit, fully-leased rental. I'm working on selling it wholesale. The second is nearby: a CA deal on a 2br. But here's the new crux: showing properties. I am a busy man. What kind of creative strategies have you worked out to show off the units of rentals? Showing the 2br should be easier because it's nearby and simple. But how do I efficiently show a 4-unit????? On Monday I'm headed out to show this property to two Buyer leads and I'll be with the owner himself. Ergo I have an upcoming opportunity to work out a strategy to show this property. The owner lives about 30 minutes away and I live 1.5 hours away. So have you any tips? Learning-experiences from showing multi-units? I'm considering offering all of the tenants of the 4 units a $100 rent credit (basically going to pay them with my assignment fee). It's like, ok, nobody will buy it if they don't see it AND nobody will buy it if the tenants are pissed off. Right? Tell it, please. I'm ready for the next lesson! How do we creatively show multi-unit properties? Thank you! Yippee for signed paperwork! =D Share this post Link to post Share on other sites
MichaelC 160 Report post Posted September 17, 2012 Nick, the first thing you're going to need is the cooperation of the current tenants. Not always easy when dealing with one tenant in a single family, let alone four different tenants in a 4 unit.Obtain the names and numbers from the owner and give each a call. Suck up a bit and let 'em know you are on their side. Ask how they are liking their apartment and what needs improving. Lend a sympathetic ear. Find out about long term plans: staying or moving?Once you've softened them up a bit, explain how you're going to be needing access to the property to show it and inspect it. Give them "reasonable notice", which usually means 24 hours in most states and you should be fine.Now, for that 90 minute drive, that's something you need to avoid. If one of the tenants is willing to work with you, you can arrange paying, say, $25 per showing for her help, or whatever you can workout. Share this post Link to post Share on other sites
wildwestinvest! 19 Report post Posted September 18, 2012 So I arranged at first for 2 people to show up. On my way there I got a call from another interested party and told her I was headed there. Then I got a call from a Realtor who contacted me early on and she brought a buyer. It turned into a mad house and I felt a little bad, Scores of people everywhere, one party is running around with ladders and flashlights, some are meandering about in and our of this unit, Richard's over here trying to group them up so he can show them his unit all at once . . . But there's a lot to be said about generating your own competition. One of the ladies took me aside, told me her situation, then I collected a $1500 non-refundable deposit for any reason from here, with a promise to pay the other 8500 in option consideration within 20 days. Apparently she needs to call her stock broker to liquidate assets. This is a situation worth considering. Show four units is not easy task, but there's not enough to be said about doing a good showing. For the showing I brought a few copies of property information sheets. Bought and assigned in 4 days..... Crucial thanks for all the investors and geniuses who played a part in my first deal! Share this post Link to post Share on other sites
MichaelC 160 Report post Posted September 18, 2012 Bottom line: you made $10K in just 4 days using a Pure Option? Beats working for a living! Congratulations, Nick! Share this post Link to post Share on other sites
<Steve> 82 Report post Posted September 18, 2012 Very Nice! Share this post Link to post Share on other sites
DanielSun 7 Report post Posted September 19, 2012 my goodness, congrats!! you really down played the importance of this transaction. First deal man, it's huge! Aren't you excited? Does it remind you of the first night you spent with a lady? Can you share a bit more about this deal? How did you find it? How did you negotiate the price? Share this post Link to post Share on other sites
MichaelC 160 Report post Posted September 19, 2012 Does it remind you of the first night you spent with a lady? . . . Share this post Link to post Share on other sites
wildwestinvest! 19 Report post Posted September 26, 2012 If this weren't a professional forum, I'd have an outlandish story for you...... So of course, my first deal was an A-typical opportunity, but it went a little something like this: my marketing manager and I put up bandit signs all over town one afternoon. The phone was ringing like crazy and we got a call from a gal who owns 3 properties in a nearby city (1.5 hours away), I took down some information on the properties and began researching them. I quickly realized I had no access to comps on properties in this area. Hmm. I called this gal back up the next day and I said I didn't know what to do with the properties but to hang in there because I was still trying to figure something out. The next day I give her a call (now having considered using a pure option) to sense out her purposes and the like, and I come to understanding they own property in a number of places, and they have a balloon payment coming up, so something needs to get liquidated. I decide to go to their village to see their properties. I was already being given pretty good prices on the properties, but based on their need to get cash ASAP, I offer to take a pure option on the house. I told them about how I know people who would be interested in purchasing it, I told them about how we run marketing, we're agressive, how I'm going to put together an investor-friendly marketing package, they believe I'm more aggressive than our local realtors, et cetera. They were asking 95k. I told them it was beat up and I would give them 80k. He rose to 85k I said ok. I left him with a copy of the pure option (They really wanted to look it over) and a few days later I had signed paperwork. (30 day option period, extendable 30 days, $1 consideration) 85k? how did I know it would work? I did the math a created a pro-forma for property. It could easily cash-flow. With expenses, and a huge repair budget even, I knew this thing could cash flow at 95k for a cash-buyer. I knew it could cash flow at 100k, but since it was my first deal and I was excited about not making anymore 3 hour round trips, I wanted it sold fast. In order to market this property, I listed it on CL, postlets.com, and we did some great bandit signing in town. 3 big signs on the property itself, then about 8 directionals across town pointing to the property. I scheduled my first showing and I ended up with about 5 different parties checking out the house. I was prepared by some 2 page flyers which included a picture of the property, a pro-forma, and some basic information, as well as a company magnet. It was a bit of a mad house but eventually I was pulled off to the side by a gal who wanted to make a $1500 non-refundable (for any reason) deposit toward the purchase price. I should actually be getting the other 8500 from her right away (hopefully today) and she has a bit of time before she needs to close. But uh..... awesome! It's a skill I could repeat over and over. It's something I could do 3 times per year and match my old salary. It feels good. It was a crazy journey to here. But they were right that everyone won't understand until you get that first big check. But uh, MC, he's the real deal! Success is not where you are, but how you got there. Share this post Link to post Share on other sites
DanielSun 7 Report post Posted September 26, 2012 Out standing dude! that was awesome just a side question, i've been consider doing bandit sign campaign for a while now, but to purchase 200 double sided signs would cost me $500 (shipping included). I would like to hear how you do it. do you buy them? or make them? who is this marketing manager? how does he get paid? How many signs do you place per campaign? congrats again Share this post Link to post Share on other sites
wildwestinvest! 19 Report post Posted September 26, 2012 We made the bandit signs using corrugated plastic. Walmart sells blank ones for a few dollars a piece that come with a wicket. I happen to have practiced calligraphy a bit, so I give it my best using a brush and paint.* Hand written works: it's cheap, it's up, people read it. Best part is, if you don't like it you can change the whole campaign for like 50$ and a little more time making signs. They key is MASSIVE letters. SIMPLE message, and people need to see them 3 times in row. It's all about location, anyway. I would make yourself about 20, and do yourself a damn good job hitting all the egress points of your farm area. You're going to be impressed how fast you get calls, how many you get, and you'll eventually talk to the bandit sign police if you do yourself a good enough job. Just remember: advertising is about being disruptive and loud. Don't be sheepish in this matter. I recall saying "I don't want any part of this" while standing in my yard, looking at about 20 WE BUY HOUSES signs we just painted. I had 2 signs that were at least 8" letters. The marketing manager is my brother. Who else could I willing and thoughtlessly split the profits 50/50? Who else is going to work on promises? Luckily, he is a little different personality from me. He excels at the requirements of a campaign leader, tactical specialist, and arsenal creator/maintainer. Adding him changed everything. I now have a business that generates leads and has human resources to get things done. He's an independent contractor. I pay him for any deal he has direct involvement in in any way (both buyer and seller marketing). I still need to finish structuring my business in the most lucrative way possible, so I can't really offer too much advise on this end--like I said: promises. *the magic colors are black on yellow, and blue on white Share this post Link to post Share on other sites
<Steve> 82 Report post Posted September 26, 2012 I bet the trick was those "Company magnets" Great story & deal! Congrates wildwestinvest! Share this post Link to post Share on other sites
MichaelC 160 Report post Posted September 26, 2012 If this weren't a professional forum, I'd have an outlandish story for you...... It isn't. . .do tell. . .Interesting story, Nick. Thanks for sharing how it all went down. You made the effort, you reaped the results. Way to get your new venture up and running. May this be the first of many. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted September 26, 2012 . . .you'll eventually talk to the bandit sign police if you do yourself a good enough job. . . Tru dat. So just remember not to use a traceable phone number. Google Voice, prepaid cell phone, etc. Share this post Link to post Share on other sites
DanielSun 7 Report post Posted September 27, 2012 Thanks for the input, i guess if i need something fast i can always go hit walmart. Share this post Link to post Share on other sites
wildwestinvest! 19 Report post Posted October 9, 2012 Things are not as simple as they seem. I'm still battling with this babe to get the deal closed. She is part crazy (as am I so it's becoming a problem). However, I think we are finally on our way to close this baby on FRIDAY, so she PROMISES. I finally found her a competent closing agent. The good news is, because it is a SWEET deal I have a back-up in place. In fact, if she doesn't pull the trigger on Friday I have someone else who will. Lesson: 20 DAYS IS TOO MUCH. Duh. Good news is pure options are RAD. But remember: you may as well assume lawyers, title agents, brokers, bankers, WYREC investigators, investors, etc. have no idea what they are, even if they claim they do! If you want to be the most clever, you gotta be ready to teach some people some things and hold some hands. Share this post Link to post Share on other sites
