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:
- Tenant #1 - was great! Young single guy and very cooperative.
- 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.
- Tenant #3 - lovely kind woman. She warned me about the "special one."
- 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!
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I have always told new agents that it is so much better to learn at the beginning and have some rought times then to have a smooth entrance and in the midst, a huge wave. Pretty great! I love the comment about hoping that the Realtor becomes a home stager. Still laughing.
Barb - haha thanks! That deal was the best thing that could've ever happened to me as a new agent back then! There were so many components and outside factors to consider in addition to the regular transaction variables that I had to learn right out the gate. I was thrown out into the deep and it was either sink or swim! My broker and support team were great! After we lost the first buyer, I went into the office and my TC could see steam coming out of my ears! She said it looked like I could use a "broker hug." She was right! :)
Hey Andi . . . apparantly your cousin didn't see you always as a child -- but now, as a competent Realtor(r) who he entrusted with a very tenacious set of circumstances. A good first 'baby' step in the real estate world. Good for him to entrust you, and being able to see you as all grown up!! ;-)
Andi, there is just no better teacher than experience. Sounds like you did a great job new agent or not
Carla - I was always the "old soul" of the cousins, so maybe it isn't such a surprise. :)
Gerry - thanks! I still was able to see it as a lot of fun, so maybe it was confirmation even back then that I was going to love this career.
Andi: Experience is a great teacher and moving on will let you experience some more
Ty
Wow, Andi, I don't have any story to match yours. Nothing like a baptism by fire. Love your closing line!
Andi - Wow you were definitely put through the ringer on this one, hopefully your second transaction was much easier.
Ty - experience was absolutely the best teacher for that first deal and still is!
Lottie - the good thing is, after all these years that was my worse and even now when I think back on it, it wasn't that bad.
Michelle interestingly enough, I had to think about my next transaction after that one. It took me a while to remember the "players." There was a VERY fast-talking slick listing agent that I had to keep reining in. She would try to distract me from issues. So I remember I kept starting sentences with "Now getting back to what I was saying..." :)
If any new agent could survive this episode, they can survive anything else that follows. Thanks for sharing the story of your COURAGEOUS beginning.
This is the type of story that should be told more often. Too many people think being an agent is putting a house on an MLS and having some showing and your done. Good for you on closing the deal. I bet that settlement was extra special and won't be forgotten.
I like Lottie's description of this ordeal you went through, Andi - a baptism by fire.
The Realtor acting badly...well, I hope that they either grew up or found another profession. That's no way to behave.
Great job of story telling. This is really a sad story. I'm glad you gleaned wisdom and strenght from it. Many would not.
This story is pretty familiar to many REALTORS. Just one reason why this job is way more complicated than it looks.
Hi Charita- That is exactly how I felt. That's another reason why I don't understand people who run from short sales or what they think is the hard stuff. I'd much rather get it over with because I hate being afraid of anything or having the threat of the unknown over my head. :)
Stuart - I agree. Its too many people saying its easy who are far removed from it. Oh and selling an apartment building in overpriced L.A. County during the "good years"...the check wasn't bad...not bad at all...I have a photocopy of it somewhere. :)
William - I probably could find out if she is still working as an agent. What if she ended up here on ActiveRain?
Amy - again I agree. Most folks only know the happy smiling Realtor they see on TV ads handing over the keys.
Andi - The way this was handled and the fact it was done is testament to your natural ability to deal with difficult situations. I would ask your cousin to write a testimonial and place it on your home page. Great job handling such a stressful situation! The buyers you represent are lucky to have someone with these people skills.
Nevin - thank you so much! When this happened I didn't have a website at the time. He moved out of state, I went on to the next deal. I am definitely forwarding this blog to him though. At the time when I told him about tenant #4's antics, he said, "Welcome to my world."
Hi Andi...I really enjoyed reading your post. You have a gift for writing and so I will now subscribe.
As soon as I began I thought how I wished blogging was around the first couple of years I was in real estate. There were so many "fun" stories to write.
Kate
Thank you so much Kate! It means a lot to me. It surprises me how many people "get" me here. :)
Wow! that was a lot of work and stress - good job and good warmup for the career ahead of you . :)
Girl, Im glad you are here to tell us your story. Good job!!
I have always said I was going to write a book called - So You Want to be a Realtor, Read This First.
Glamorous, I wasn't thinking that when I was helping my buyer pour diezel fuel into the oil pipe for the home inspection. My hands stunk to high heaven
Krista - hahaha me too!
Lori - write it - write it!
Jane - oohh what we do for our clients!
Virginia - I've had no deal since to match the craziness!
I am impressed!
Doug - thank you! At the time I didn't know this wasn't your average real estate deal and still wanted to be in this business, so I guess that's saying something!
I just re-read comment from the original post. WTF was I talking about "baby steps" -- this was a GIANT LEAP of FAITH to have to go through all that. GEEZ. You're right about suggesting people STOP watching HGTV. It's a good "un"reality station.
You can't make this stuff up! I clicked "suggest" for the mastery of the story.