Andi Grant's Blog - Everyday Real Estate with a Twist

This is a repost because someone just asked me if they should get into the real estate business because agents still made a lot of good money in it and it seemed so glamorous.  I told her to do two things.  1)  Take some time off from HGTV because it was completely distorting her idea of what this business was all about.  2)  Read about my first real estate deal many years ago and tell me if you still think it's glamorous *see below.*  [This is a long one but well worth the read!]

REALTOR Sabotage, a Violent Tenant, Buyer Backing Out, Out-of-state 1031 Exchange...and THAT WAS JUST MY FIRST DEAL!

My first deal - talk about an accelerated real estate crash course!  Several years ago when I had just received my license, my cousin called to tell me that he wanted me to list his property in Long Beach, CA.  The same cousin who used to babysit my siblings and I and said we would never grow up in his eyes?  My hero!  I was sure it was going to be the easy-to-list, immaculate 3 bedroom home he had.  No!  He wanted me to list one of his 4-unit apartment buildings. 

To a new agent an apartment building sounded like selling Trump Towers!  In addition to that, my cousin was selling it and doing a 1031 exchange for several homes out-of-state, which meant there would be strict time deadlines to take into consideration.  If that wasn't enough, he would also be out of town most of the time and would be signing docs and coaching me from a distance.  *GULP* Thank God for my wonderful agent-friendly broker!  

Fast forward to meeting the tenants:

1. Tenant #1 - was great!  Young single guy and very cooperative.
2. Tenant #2 was a REALTOR.  My cousin had used her before for transactions, but told her that he would be using "family" for this one.  Well apparently this didn't sit well with her as we would later discover.
3. Tenant #3 - lovely kind woman.  She warned me about the "special one."
4. Tenant #4 - the "special one."  My cousin said she might be a little difficult.  Oh lovely. 

Within no time, we got the offer we wanted and were in escrow!   

INSPECTION DAY:

Tenants #1 and #3 easy-breezy great!

Tenant #2 (the Realtor) who was reportedly a neat freak according to the other tenants and my cousin, had clothes strewn all over the place in every room of the house.  Doors were hanging off hinges and there were NEW permanent stains in the carpet just in time for the date of inspection.  Nice.

Tenant #4 had a terminally-ill and not-so-mentally stable border living with her who, unbeknownst to me, was going to be present for inspections.  Oh and did I mention that he also suffered from "Demophobia" which is a fear of crowded places?  I had scheduled the physical inspection, termite and appraisal all in one day.  Two of the aforementioned were either early or late and at one point there were 7 people in the 2 bedroom apartment all at the same time (me, the buyer, the buyer's agent, the border, the appraiser, the termite inspector and the physical inspector).  I guess it became too much for him because all of a sudden he jumped off the couch and started yelling at the buyer!  His fists were balled and he was threatening the buyer's life!

Oh Lord.  I took in the entire situation as with eyes darting back and forth.  The buyer's agent looked like he was going to faint before the buyer did.  The border was fighting mad and with him being terminally ill, this poor guy had NOTHING to lose!  What to do, what to do?!

In a calm voice, I told him that it was ok. I added that *special one's name* whom he bordered with, wouldn't be very pleased to know we didn't get to finish today and we'd have to reschedule another appointment that same week. He backed off. The buyer backed out. I had backup offers - Thank God!

I was later to learn that "special one" bragged to the other tenants about having the border scare the first buyer off!  She then tried a another routine with the new backup offer buyer. He saw right through it though and said he would be moving forward.  After he and his Realtor drove off, she started yelling that my cousin owed her a relocation fee because she knew the law and that's what happened at her last place.  I politely informed her there wouldn't be a relocation fee paid this time because the city she resided in wasn't under rent control.  I told her the new owner was also aware of this and hopefully was very forgiving.

She started crying and blaming me for not telling her that he was going to be the owner (???) and then stormed off to her apartment.  I felt bad...well not really. I know that's probably a bad thing to say, but I'm being truthful about how I felt at the time. Tenant #3 witnessed the entire episode. She took my business card and said when she was ready to buy I would definitely be her Realtor if I could come out of this still sane and smiling.

Building sold for top dollar, cousin had a successful out-of-state 1031 exchange and it was a happy ending for all...or was it?

FAST FORWARD TO TODAY (March 2010)

The owner is losing the apartment building!  It is a pre-foreclsosure short sale now selling for hundreds of thousands less than what he bought it for.

Tenant #1 - moved away and I'm sure is a fine upstanding citizen somewhere. 

Tenant #2 - a.k.a. the REALTOR - I have no idea what became of her.  I only hope she has repented for her behavior and has since become a home stager in recompense.

Tenant #3 - went to live with her son.  I wish this kind sweet-spirited woman all of the best and would be more than happy to represent her!

Tenant #4 - I found out from tenant #3 that terminally-ill border ran away!  "Special one" came home from work and all of his stuff was packed and gone.  She was also said to have skipped paying rent over various trumped up complaints, creating a difficult situation for the new owner throughout his years of ownership. Poor guy!

My cousin was glad he sold during the "good years." 

What I learned back in that first deal, was more than what most agents learn in all their years of doing real estate.  After that, my attitude was fearless! BRING IT ON! 

DO NOT ENTER - Big Scary Tenant and the Smell of Cannabis

 I took a new buyer out to see 8 homes this past weekend in a very desirable neighborhood.  The same buyer I had been keeping in contact with for over a year as she diligently worked hard at paying off bills and bumping up her credit score in order to increase her pre-approval amount.  I made the showing appointment with the listing agent two days prior and confirmed again on showing day. 

As we walked up to the door, I pulled out my business card.  Just as I was about to ring the doorbell, a huge guy snuck up behind us and said, "Hello?  May I help you?  

My buyer (jumped and said aloud):  Ooo sh*@$#%!

Me:  Um yes.. sorry hi.. wow you startled us.  We came to see the house.  We had a 1pm appointment.

Big Scary Tenant:  You did?  (extending his hand in a gesture to retrieve the card I was in the process of balling into my hand for less visibility). 

Me:  Yes, but maybe we can come back at another time (as my spidey senses started tingling and the smell of strong "erb" smacked us in the face).

Big Scary Tenant:  No, no it's ok....and sorry for the mess. He walked us in a few steps before the buyer and I came to a complete halt. 

What a mess it was!  Bong pipes, strewn clothes, and dirty dishes were everywhere.  There wasn't a table, shelf or window ledge that wasn't covered! 

Big Scary Tenant (pointing):  Oh and there are a couple of guys asleep...ya know graveyard shift, so some of the rooms are locked. 

Me:  I see...interesting that ALL of the guys work graveyard?

The only door that appeared to be open in the direction he was pointing, was at the end of a very dark hallway. 

Me:  Ya know, you've been very accomodating and I appreciate that, but I think we're going to come back when we can see the entire house (NOT!).  I started walking backwards just in case I needed to spray him with my keychain pepper spray.  Thank you and uh buh-bye.

Once we were safely in the car, doors locked and engine running, we started laughing. 

My buyer: WHAT was that?!

Me:  THAT I hope was the last time that's going to happen.  Sorry about that!  You never know what to expect even in the best of neighborhoods.   

I immediatley called the listing agent and let him have it!  No, he is not in control of tenants smoking illegal substances at any given time, but he is in control of notifying the tenants same day as a reminder and maybe if at all possible, periodically checking the house to see how it will show or at least giving fair warning in private remarks.  I have never seen anything like that!  The hot mess we saw took several months to create! 

Phew!   I'm happy to say that in spite of our shaky beginning, we did end up finding a gorgeous remodeled home she fell in love with and wanted to immediately submit an offer on.  We submitted a clean, streamlined offer package and hope to hear back soon! Wish us luck!

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