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Posted over 8 years ago

Tell Me A Story

    I enjoy reading. I enjoy listening to stories. I enjoy telling them. I can do the math and the math is important, but the investments that get my attention, that get me excited about pursuing them are the ones where there is a story attached. My favorite ones are the ones that have been sitting out in plain sight, that have been passed over by other investors, my colleagues, because they didn’t see the story, didn’t look hard enough for it. Those are the deals that I usually learn the most from. The more I learn the better chance I have of uncovering the next story.

     I partner with other investors on deals on a regular basis. I am often asked what I want to see before I commit to a deal. My response is often “what’s the story?” The story need not be long. Let’s face it, what most of us do is not very complicated. We buy properties, do a little fix up or a lot of rehab, sell them or keep them as rentals—fairly simple. If you are not good at telling stories (or do not like to tell them) you could tell the stories with a spreadsheet. Provide the numbers. However, the numbers usually must be compelling for me to partner with someone just on the numbers—and the numbers must be complete or nearly so. Always remember it is much easier to say no than yes. If I must ask several times to get the numbers I need to make an intelligent decision about your project…well, frankly, I won’t…unless I already know an interesting story about the area or, maybe, about you and I have been considering partnering with you already.

     To invest well it helps to know the story surrounding the story. Is the area you are investing in rising or declining? Are rents stable? Is there any new development in the area? Are homes being knocked down for new construction on the underlying lots? Any zoning changes proposed? Are they building schools or closing them? Who are you rehabbing the property for? Who is your buyer or tenant? Describe them. What do they like? Where do they work? What is their education level, their income? Do they have kids, pets, boats? I am certainly not asking that you violate any housing laws, just that you have someone in mind who you are trying to appeal to when you spend your money—someone who would absolutely love what you have done. If you do your job right and that buyer shows up when your property hits the market your sale will be almost effortless—they will love the house and will find a way to buy it.

     So, do you want to work on a deal together? Tell me a story.



Comments (2)

  1. Jeff:  I couldn't agree more with you.  Numbers are only part of the story.  Give me the back story.  If I'm eyeing a property, I want as much information as possible.  I believe in seeing the property in person, talking to the neighbors, the building official, the former owners relatives and even checking Facebook to see if the current or former owner has their life story posted. All of these sources tell you a story. I am not a big fan of investing from afar as there is no substitute for seeing, feeling, touching and getting the back story on a property.


    1. Yes. Thanks for your comment.