Asset Management & Recovery: December 2006

About 6 months ago I called a man I had never met.  A man named Jerry Wallace.  I had a question about selling land at auction.  A month after that I called another man I have never met named Robert Mayo.  I had a question about recruiting agents.  About 6 weeks ago I called another two people I had never met.  Many know them as BB and TLW.

This afternoon I received a call from a man I had never met before.  His name is Jerry Wallace.  He had a question about selling a parcel of land owned by a convicted embezzler.  Long story.

This evening I ran into a woman I have never met before named Monica Hubert. Meet Monica  She asked all of us what pointers we would give her as a new agent.  Essentially I told her not to give up.

Point is that the people we meet in places like Active Rain become our mentors, teachers and friends.  Thanks Jerry.  Thanks Robert.  Thanks BB & TLW.  Thanks Moinca.  For the advice and the kick in the butt.  You know what I mean. C ya round, ya'll.

I was at a closing tonight on a lender owned deal.  This was especially nice since it was one of the few where an owner/user was getting the property instead of another investor.

The buyer agent was extremely nice and extremely professional although she does not do a lot of lender deals and thought the process was extremely taxing. Cross the T and dot the I.  Not that big of a deal to me.

A term in the addendum was that if the property failed to close by Dec. 18, the buyer would pay an additional $100 a day until closed, but only if the delay was the fault of the buyer or buyers side.  As it happens, the buyers lender was late so the deal closed today.  Yep'er'doodles there was an extra $100 on the HUD.

The buyer agent, of course, is wanting a refund.  I really, really, really need to be somewhere else, so I offer to cover the $100.  Let's move on, ok folks?  The buyer agent tells me that she can't let me do that because she will feel guilty.  There's nothing to feel guilty about, I tell her.  If it is a big deal and will make you feel better, whip out a $50.  Problem solved. 

That wouldn't be right, she says.

So here I am sitting in a closing with $100 between me and getting to my next appointment and the buyers agent will not allow me to write the check.

Ultimately, the buyers agent demands that the closer call the lender/seller and get the $100 waived.  Long story on why this was not my responsibility.  Trust me.

Longer story shorter, I email the lender/seller to tell her that the closing has been completed and ask if there are any more deals I can help with.  The response was that she will keep in mind both my request and the fact that I cost the bank an extra $100.

Please folks.  As a matter of good business and common courtesy, if the other side is willing to cough up the $$ to make the deal work either step up to the plate and help or stay out of the way.

Broker Bryant recently has a blog about being screwed and Jay McGillicuddy responded about the nerve of the guy that called BB.

In May 2005 I was acting as a Court Appointed Receiver at the request of a local bank for the purpose of liquidating a 14 unit apartment building.  A buyer came forth and was represented by my next door neighbor.  We will call the buyer Mark Evans, since that is really his name.  Look out for this guy, folks.  He is now a world travelling teaching GURU. Here is a mug shot.

Anyway, we go through the process which includes him providing an approval letter, me asking my attorney to draft a Motion to approve the sale, going to Court and obtaining an Order to approve the sale, setting up a closing with the title company and so on.

All of a sudden, Mark doesn't have the money to close and just can't find financing anywhere.  I am a little upset, but I get over it.

I am over it until 4^th of July 2005 when my wife and I are having a little party and my neighbor comes rolling in.  He was invited and expected.  Next thing I know, in walks Mark Evans, sits down at my bar and asks for a beer.

This is the guy that wasted my time, my attorneys time, the Judges time, the foreclosing lenders time and the foreclosing lenders attorneys time.  He has the stones to saunter into my home on my anniversary and try to drink my booze.

The nerve of some people.

Ok.  You've taken the first step and listened to Yoda.  Now, how do you do it?

First step is to find ‘em.  Away we go.

http://www.lawyers.com/

Select "type of lawyer" in the appropriate box.

Select City and State

Click Search

Best Lawyer Types:  Real Estate, Bankruptcy and Wills & Trusts

By searching this way, you will find a very solid basic list.  You will also find a list of firms that have practice groups in these areas.  I suggest that you also go to the law firms website and search for attorneys in the practice group as well.  This will increase your list and be more comprehensive targeting.

Good luck and be persistent.  The deals will probably not come right away.  This is a long term play. 

Facts for you I have.  Learn you will if only you listen Skywalker.

There have been many, many blogs about finding business.  Here is the secret.  Prospect sellers that will provide multiple deals per year.

Bankers - Bankers have many borrowers who borrow money to buy things like houses and investment properties.  Bankers have clients that borrow money to buy things they can't afford.  Bankers have inventory.  Bankers direct multiple deals a year.

Lawyers - Lawyers have their own money AND they represent multiple bankers at once.  One lawyer can plug you in to 10 bankers.

I had a great meeting today that I wish everyone (outside of my marketplace) can have.  It was like hitting the lottery.  I will call it Real Estate meets New Math.

4 bankers + 2 attorneys = 6 months of revenue

Try it.  You'll like it.  Or my name isn't Yoda.

Shameless Blog Promotion: Click Here to go to the Bonus Point Blog and leave a comment there too. We are working on 10,000 comments.

Per request:  Back to the funny stuff.

Jose Cuervo Christmas Cookies:

1 cup of water
1 tsp baking soda
1 cup of sugar
1 tsp salt
1 cup of brown sugar
1 tsp lemon juice
4 large eggs
1 cup nuts
2 cups of dried fruit
1 bottle Jose Cuervo Tequila

Sample the Cuervo to check quality. Take a large bowl, check the
Cuervo again, to be sure it is of the highest quality, pour one level cup
and drink.

Turn on the electric mixer...Beat one cup of butter in a large
fluffy bowl. Add one teaspoon of sugar.. Beat again. At this point it's
best to make sure the Cuervo is still OK, try another cup, just in case.

Turn off the mixerer thingy. Break 2 leggs and add to the bowl and
chuck in the cup of dried fruit, Pick the frigging fruit off floor...

Mix on the turner. If the fried druit gets stuck in the beaterers
just pry loose with a drewscriver. Sample the Cuervo to check for
tonsisticity.

Next, sift two cups of salt, or something. Who giveshz a sheet.
Check the Jose Cuervo. Now shift the lemon juice and strain your nuts.
Add table. Add a spoon of sugar, or somefink. Whatever you can find.

Greash the oven.

Turn the cake tin 360 degrees and try not to fall over. Don't
forget to beat off the turner.

Finally, throw the bowl out, finish the Jose Juervo and make sure to put the stove in the dishwasher.

CHERRY MISTMAS!

Click Here to respond for bonus points.

The 25,000 point blog.  I needed something that was different (for me anyway).  While I was responding to TLW this morning, it came to me.

This is a business built on relationships.  It is a business based on referrals.  It is a business where we all benefit by being open with our advice to our peers.

For my 25,000 point blog I wanted to highlight some of the real estate and auction professionals that have helped guide me along the way.  These are the ones that I have spoken to on the phone, have emailed with, have been in online discussion forums with, but have never met.

Why are you doing this, Rich?  Well, it is because I want to point out the VALUE in participating in these types of forums.

Robert (Bobby to me) Mayo - Real Estate Auctioneer - Kansas City

Jerry Wallace - Real Estate Auctioneer - Central Illinois

Linda Mardi - Real Estate Auctioneer - Austin Texas

Mike & Rachel Hoffman - Real Estate Auctioneers - Pickerington Ohio (long story)

Tom DiNardo - Charity and Fine Wine Auctioneer - Washington State

Bryant Tutus and the Amazing TLW - Real Estate Brokers - Poinciana, FL

Craig Shiller - Home Stager - Chicago, IL

Karen Hurst - Real Estate Broker - Rhode Island

Bill Archambault - Real Estate Educator - Vegas Baby

Melissa Kruse - TOLW - She pouted when I didn't put here in this, so here ya' go.

Ok.  This list could be as long as my arm.

I want you to take a look at the list.  Not just the names, but the locations.  The real estate and auction industry are changing.  Local business is becoming more global.

If I were to add in all of the people and their locations that I have conducted transactions with, met at a conference and receive advice from, the list would include professionals from almost every state.  In many cases multiple people in the state and in different cities.

If something comes up in Florida, I know who I can call.  It's Bryant.  If I need some help or a partner on a large land auction I can call Jerry Wallace.  If I get arrested in Vegas....well, you get the idea.

Here is the point.  By participating in the forums like ActiveRain or the National Auctioneers Association Discussion Forum I am finding professionals around the United States, Canada and Australia that I can call on for assistance, not just advice.  I can comfortably refer clients to people in every state.  Maybe I will earn a fee, maybe not.  The client will be taken care of and they will remember that.

Today, my brokerage and auction firm is international.  I have associates everywhere and so do you.  You just need to think about it that way.

So for my 25,000 point blog I give a thank you to everyone that has helped me in my career and a gift to all of them.  Congratulations - Poof, you are all international business stars.

Gift # 2 - Click Here to go to the Bonus Point Blog and leave a comment there too. We are working on 10,000 comments.

For those of you interested in finding auctions in your area or an auctioneer to help you auction a parcel of property you might want to check the links below.

Find an Auction:

Auctionzip.com

National Auction List

National Auctioneers Association Auction Finder

Find an Auctioneer:

National Auctioneers Assn. Auctioneer Finder

Ain't done never seen an auctioneer in action before?  See below.  No, we really don't all spell like that, but we might talk a little quick!!  This just happpened to be at a charity event for the Mid-Ohio FoodBank.

In our area (Polaris) of Greater Columbus Ohio, there are multiple options for internet, cable and phone providers.

Until today, we had three companies doing different things:

Verison - Phone $92.00 Unlimited local & long distance

Insight - High speed internet $55

Dish TV - $115

Total: $262.00 / mo.

By bundling all of the services together through Verizon has dropped everything to $160.94 including all taxes.  They started telling me about adding my cell phones into a package and getting an even better deal.  We are on a good program, so I wasn't interested but it was an option.

In the event you are looking for a way to cut some monthly costs, a phone/high speed/cable bundle might be an option.

By the way, the customer service rep was great too.

I love the reality shows.  Buy low, sell high, make a bundle. $50,000 profit.  Really?

You pay $100,000 and have a mortgage.  There are points and closing cost.  There are monthly carry costs on the PITI, insurance, gas, electric and water.  There are dumpster fees.  There are permit fees (maybe).  There are material costs.  There are budget overruns.  There are labor costs.  There are re-sale commissions.  There are seller concessions.  There are transfer taxes.  There are title insurance costs.  There is all of your time.

You didn't really make $50,000 !!!!!!

I don't know how many re-hab flips I have done.  It is a lot.  Not once have I gotten the work done in a week, property marketed, open house held and property under contract on the first day.  Never have my open houses brought in 100's of people.

Ugghhhh. 

Ladies and gentlemen, flipping is not that easy.  If it is, I must be doing it wrong.  Like anything it is hard work with a little luck thrown in.  It is ALL MATH and calculations.  Detailed spreadsheets and budgeting.  It can be done.

Please Please Please do not believe the TV.