A Conversation with Darren Sager!

Pilialohaʻs QUICK TIP: Bring VALUE to your partnerships. Especially if you are new. If I learned anything from this interview it is THIS...

Aloha,

Welcome to my blog. If you want to know more about me please visit my profile page or reach me at my information below. I am going to leave off introducing myself and the reasoning behind the name of this blog because I am just so flipping excited to write about my TWO HOUR CONVERSATION with Darren Sager!

Mr. Sager bought his first property in 1998 and has been investing ever since. He is just about to payoff (early!) that first property at the end of this year. He will be making $2000 of pure profit. (CONGRATS DARREN!!!) 

For more information and to hear his story straight from Darren please go to:

BP Podcast 48 with Darren Sager

So why did I get so lucky? Why did a real estate agent and investor GOD like Darren give a newbie like me the time of day???

Because I asked nicely.

NEWBIE-PILI TO NEWBIE TIP #1: ASK. It really doesnʻt hurt to ask. Darren says he takes meetings with investors and investor agents at least once a week.

That said, I am also a new real estate agent at Keller Williams Realty where Darren also hangs his license. So I had a few connections to him beyond Bigger Pockets. It also helped that I am originally from Hawaiʻi and that he is about to go on his yearly vacation there in a few weeks.

So we both used that connection to break the ice. I asked him if he considered investing there. Darren said that he had... That he AND @Brandon Turner were thinking about it..

NEWBIE-PILI TO HAWAII REAL ESTATE PERSON TIP #1: If you have deals in Hawaiʻi... you should post and tag Brandon and Darren!!!

After talking about Hawaiʻi and real estate there I segued into a property that I was working the numbers on using BP investment calculators.

NEWBIE-PILI TO NEWBIE TIP #2: Use the CALCULATORS!!! Even if you have an outstanding head for numbers... these calculators will give you the numbers you need to make a SMART DEAL.

Excited to show my work, I WAS going to show Darren my research. I pulled up all the info on my little Mac Air. Darren barely glances at the picture and says.

"Oh... that one. Donʻt waste your time."

BAH! I was a little heartbroken but he explained the situation. Heʻd looked at that same property about two years ago. The bank was firm on a price that was just too high and Darren (in so many words) said it was NOT a smart deal.

LESSON LEARNED- If the property is on Market for a very long time... then there was something there that made other investors turn their head. (NOTE: that doesnʻt mean you shouldnʻt run the numbers... maybe you have something the other guys donʻt have...)

Darren went on to talk about the GAME he likes to play... it is called VALUE ADDING. HE explained to me that his first job in real estate was for a HUGE COMPANY working on multi-billion dollar properties. He was an intern straight out of college (which he paid for by himself and graduated with all sorts of honors and such) and he was put on this huge deal that was attached to The Kennedys. His boss asked him, How can you find value or create more value on this property?

It became a game for Darren. He says, I donʻt WORK. This is a GAME. I look at the MLS all day analyzing properties because it is FUN. He looks for deals and how he can ADD VALUE to them.

NEWBIE-PILI to NEWBIES TIP #3: Make this fun and do it EVERYDAY! Deals fly in and fly right out because investors like Darren play the game. They play it all day, everyday. They PLAY.

We talked further about all things real estate investing and... maybe Iʻll get to that in my next blog. I REALLY want to write about my opening line:

"Bring VALUE to your partnerships"

So I asked the question, "As an Investors Agent, how do you find investors?" Darren answered with a small smile and a shrug that he gets calls all the time. So much so that he canʻt take them all.

So I giggled nervously and said that he should "throw me a few." I wanted to swallow acid for saying that but I knew if I didnʻt at least put it out there that I would never know if he might.

In so many nice words Darren said, "No." Because I was new and he didnʻt know me. It was a longer answer but that was basically the gist.

I then asked him, "Can I help you with anything that you are doing? Do you need help? Can I just sit in the corner of your office and watch you work...?" Yep... I actually said that... 

*Pili puts foot in mouth.

To which Darren said, "No." There was a longer answer here as well that included the fact that he works from home so that would just be uncomfortable. And he alluded to his answers to the previous question.

Ok, I said... If I find any deals and need help, would you help me?

To that he said, Of course... and we kept on talking about real estate and investing and Hawaiʻi for quite awhile longer.

To close I thanked him again for his thoughts on the first deal that Iʻd mentioned. He said it wasnʻt problem then mentioned that if there was a way to move the property backwards into the next town... it might be a great deal.

Notice that I bolded, italicized and underlined the previous statement...

I smiled and raised my hand and jumped up and down like a little kid that really needs to use the bathroom. I didnʻt actually need to go but thats what I felt like in that moment minus having to use the bathroom.

Remember that thing I said about my family raising homes? We also MOVE homes. I think I saw a light click on in Darrenʻs head as we talked about the possibilities. I got to play the VALUE ADDING game with him.

The property in question in 1/4 in TOWN A and 3/4 in TOWN B. If we move the home backwards into TOWN B then the home MIGHT be worth TWICE as much or more. There are other zoning issues and questions that I will have to go to the townships with but... I GOT TO PLAY THE GAME WITH HIM!!!

I was so excited and thanked him and said if these numbers are correct and if it works out then this could be a great deal.

Then Darren said something that made me do a double take. He said something along the lines of "not for my pocketbook" or "not for me" or something that made me want to shake my head and say "Really?"

...but not for the reason you think.

GENERAL QUESTION: Do people REALLY think knowledge should come for free? Did Darren actually think that I would take the information and run? Then, I remembered my other questions about him passing on investors, letting me in on deals and watching him work. I was basically asking him to give me knowledge and business WITHOUT really giving him VALUE BACK. I did this without meaning to...

I had an AH HA moment and basically told Darren....

"I would bring you on this project as co-agent and as an investor." 

I then saw a little light shine from within the depths of his eyes and we spoke further about the opportunity. He called his lawyer to see if the project might work and I got my families house moving/ construction company on board. 

So... what have I learned in all this...

NEWBIE PILI to NEWBIES TIP #4: Bring VALUE to your partnerships. I know I said it at the beginning but it is worth saying again...

Until next time...

Aloha,

Pili

PS. Much mahalo again to @Darren Sager for your time and knowledge. I hope to bring many deals to the table!!! And thank you to @Brandon Turnerand @Joshua Dorkin for creating this site.