What We Do - Posted by B.L.Renfrow
Posted by B.L.Renfrow on December 21, 1999 at 21:29:58:
If the seller knew how to put the deal together, don’t you think they’d be doing it?
We, as investors, get paid for one thing: solving somebody’s problem. What’s that worth?
As an example, I have busted my AS* for the past 2 weeks putting together a deal no one else could pull off. The sellers had tried for over a year to sell their home - no results. I have buyers who thought they NEVER would be able to be homeowners. I have made it happen. Not the lawyer, not the note buyer, not the appraiser - although they have all played important roles. I put the deal together. And I say this, not to be arrogant, but to point out that we SOLVE PROBLEMS.
I have fielded dozens of frantic phone calls just in the past few days, from the sellers, the buyers and the attorney on this deal. I made three trips to the buyer’s apartment this afternoon to gather more documents. I solve problems. What’s that worth? Well, to most people outside of the CRE field, my profit on this deal will appear significant (although to the more experienced here, it’s peanuts)! However, I have EARNED every penny of my profit by using SPECIALIZED KNOWLEDGE to put this thing together.
So your assessment is not correct; we are doing something that the owner (seller) DOES NOT KNOW HOW TO DO…to make a profit. Where’s the incongruity in that? I have no idea how to repair my car’s engine when it goes on the blink. So I pay someone who uses their SPECIALIZED KNOWLEDGE to solve the problem. I could go on…but I’m sure you see the point.
And by the way, on a L/O, I ALWAYS tell my T/Ber exactly what my position is in the deal. They know up front I will be selling to them for more than I am paying my seller (although I don’t tell them how much)! Not only that, my seller knows up front what my intention is. If he had the knowledge/ability/interest to do it in the first place, it’s not likely he would have called me. If you try to misrepresent your position in the deal, you’re going to have trouble somewhere along the line.
Sorry if this seems harsh; it’s not meant to, but I agree with Pat below: quit worrying about stuff like this and go do a deal!