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Treat People with Respect

September 21, 2018

I buy some nice suburban types of houses that look great and I buy some fully ghetto properties. The one thing that is the same with all the transactions is that I treat people with respect. Most of the people are going through some sort of distress and they need someone to listen.

If you are going to buy properties for the long term, you have to be kind and treat people with respect. They are hurting in some way. The people are going through divorce, bankruptcy, or are about to lose their home. These folks have been put through the ringer and need someone to listen.

When I first started, I would talk with people who were going to foreclosure. I would knock on their door and ask them if they wanted to sell their home. Pretty simple. They would get upset with me, look at me puzzled or would just stare like they were ready to cry.

If they got upset with me, it was over. They would ask why was I bothering them. Leave them alone. They didnt want to sell. But they usually ended up doing nothing and getting foreclosed on.

They might look puzzled and not know that their property was going to foreclosure. I would give them the information that I had on their property. How could you NOT know after not paying the mortgage for 8 or 10 months that your house was going to foreclosure? Its beyond me, but some would claim they had no idea.

These folks were kinda in denial also. They thought it could not be. How could this happen. These people were good people. I would follow up, but these people could not stand the horror and disbelief that the bank could take their house away. They would get foreclosed on also.

No matter who I talked with, again I would treat people with respect. When following up on the phone or in person, the homeowner  would always say, “You were the nice guy with the glasses, right?” Yes, that is who I am.

When I would come across the last set of people, the ones with the deer in the headlight look, I knew I was going to be there for at least an hour. They knew it was coming and they were upset, disappointed and sometimes a little angry. Not at me of course, but still angry.

As with all the other people I was kind, sympathetic and listened to what they had to say. I listened to all kinds of stories about how the house was the most beautiful on the block. How they had all kinds of parties through the years. I heard how Mom and Dad raised 4 or 5 kids here. The stories were endless.

Sometimes I was almost in tears when hearing about some of the homes. There was a hoarder house. There were houses that were beautiful.

All of this really hurt my heart. I am really saddened to see people lose their home. I always want to help the people first. Help is sometimes what people need. They just dont know how someone can help them. Sometimes they dont know what they need.

The first thing I ask is, “What do you want to do with the house?” If they want to sell, great. Let me look at it and I will give you a price.

If they want to keep the house I try to find out if they are able to stay in the house. I look for ways for them to stay in the house. I ask if they have friends or family that can help them financially. 401k available to borrow against? How about some credit cards with a cash advance feature? Something so that they can catch up and get current with the mortgage.

People sometimes just dont realize that they have some resources available. If everything is exhausted and they are not able to stay in the house, hopefully they realize that they need to sell. I always make a good, fair offer. Yes I do buy properties lower than market value. I have to in order to make a small profit to keep myself in business.

There are people who will see someone down and want to get the property at a price so that they can make outrageous amounts of profit. I do not do that. I try to get the homeowner as much money as possible and still be able to make some money for myself.

We all know that the sellers are in a bad spot. They know they have to do something quick. But also, they want to sell their property knowing that they got a fair price. The sellers know that when I buy their home, there is probably not an investor out there who would have given them more money. A retail buyer might give them more, but it usually takes time to find that retail buyer. There is not enough time for that.

I always say that the longer I talk with the seller, the better the chance to purchase the property. People want to be heard. You have to listen to them.

My wife, on occasion, starts to talk about a situation at work. I jump in and try to solve the situation. She cuts in and says, “I dont need you to fix this, I just want you to listen”. She tells me what happened. I listen. I ask a few questions. People just need to get things off their chest.

It is hard for me to stop trying to fix things and just listen. It is a constant struggle. I may not be great at this at home, but when talking with homeowners I have to tell myself that I have 2 ears to listen and one mouth to talk with. This means I should listen twice as much as I talk. I know my wife hopes I do this more at home too.

You form a bond with people when you share feelings and struggles, especially when you the same things in common. Its the same when you meet someone for the first time. If you want them to like you, you let them talk about themselves more. You ask them questions to bring out what they like. When you like the same things, talk about those more.

I get to rant and rave by writing this blog for you guys. That is when I get to go on and on, as my wife says. She always says that I am trying to fix everyone. Maybe I am. I guess that is my personality.

My life mission is that I want to be a resource for homeowners and investors who need some real estate knowledge. For the blog, I hope that you read and learn a little something to help you get along with others in life and also that you are the most respectful, honest and high ethics person in real estate investing.