It’s Easy but it is a Test

Folks, I don’t mind taking a look at your deal when I have the time to do so. I am more inclined to do so if we have had some kind of interaction beforehand. (Maybe you reached out to me here on Bigger Pockets or on my Facebook page: “Damn the Recession”.) I am even more inclined to do so if we have met or spoken on the phone and you have honestly shared what you were doing before you asked for my help. You know, took the time to try and make a genuine connection. (Some of you may find this hard to believe but I struggled with speaking to strangers in social situations for a long time. I still obsess a bit about speaking in public. I understand how hard it can be and appreciate the effort when you make it.) If I don’t have the time or you managed to alienate me in the time it took to ask the question (sadly, some of you are way too good at this) I will tell you I don’t have the time or am not interested. You will know when I have the time and/or the inclination to look at your deal because I will give you a big hint—I will tell you I will do so. Most of the time I will give you directions on how to send me the information I need to analyze your deal and will tell you how to send it. I almost always prefer e-mail. Your response will be judged—it is a test.

First, did you send an e-mail? Don’t call me. Unless we have spoken before (and it was a good conversation) you are not likely to reach me. I will usually let the call go to voice mail if I do not recognize the caller. If you leave me a message stating “I know you asked me to e-mail but that you wanted to speak with me first” you are on your way to failing the test. You have told me that you understand my preference but you don’t respect it enough to honor it. I will not return your call and the time I will spend looking at your e-mail, if it ever comes, has decreased considerably.

If you leave a voice message asking me if I received your text message I will try to remember you as someone to never do business with—you have failed the test already. I will not see the message and I will not return your call. This used to annoy me but it has happened so often that now I sometimes laugh when it occurs. If I happen to speak with one of my partners or friends shortly after your message I will almost certainly share the story (they sometimes need a good laugh also) so your name may be remembered by several area investors as someone who is not quite ready for prime time. Why is it so funny? I don’t text. I do have a semi-smart phone that is more than capable of receiving texts but I find texts to be an intrusion and I have my service provider block them. My partners know this and though some of them do not understand my resistance to texting they know that to text me is futile. I will not see the message.

Assuming you have passed the first hurdle and sent an e-mail (not a voice mail, text, facebook message, tweet, etc.) did you send me enough information to make a reasonable analysis of your deal? That means a brief description of the property (single family, multi, some amenities…) and the neighborhood (is it declining or booming?). I need the purchase price, the rehab estimate, the ARV (If I am going to do the deal I will need to know how you arrived at this figure. Do you know the comps well? Have you rehabbed a similar house on the same block?), the anticipated length of time you will require the funds and how much of your own money you will put into the deal. It is not unusual for me to receive an inquiry similar to: "Are you interested in partnering on a house in Farmington?". The answer is maybe. This is not enough information for me to make any kind of assessment. Don't expect me to send two or three e-mails just to get the basic information. I don't have the time for that. The more information you provide the better I can evaluate your deal. Remember, this is a test—spelling counts. So does the format. If your summary is easy to read and evaluate you will get extra credit.

If you are trying to interest me in participating in your deal or making a referral to one of my colleagues to whom your deal may be more appropriate then give me as much information about your past successes and failures as you can and still be reasonably brief. I will make referrals if the deal and the presentation looks good. I don’t get paid for this. I do it to help my partners keep their pipeline full, strengthen existing relationships and make new connections. They, in turn, do the same for me. I will not forward a poorly thought out proposal unless I can see quickly that it has great potential.

That is the end of the test. I hope you see that it is fairly easy. You might be amazed at how many people fail. If you passed you will usually get a return e-mail or a phone call from me and, often, the invitation to reach out again. You might find a partner for your deal. If not for this one, maybe for your next.