Small town investing and reputation
Hi, I am new here and have a question. I own a used car lot in a town of 12,000 in a county of 30,000. I already own 10 rental units and am versed in no money down deals. I am interested in purchasing subject to and land contracting with a 2-3 year balloon or selling the paper at a discount, or carrying a 2nd for cashflow. However, I am concerned about reputation. Everyone says you have to make 30 offers to get 1 deal. I don't want to start ticking people off, even though I am well versed in the art of the deal. Anyone got any comments as to what they've experienced in this arena?
Thanks,
Shawn(OH)
Actually, I can give you my 2 pennies worth...We have been getting deals in a small town lately, and have been very careful to keep our reputation good. as you know, in a small town, once you are fu@ked, you are fu@ked. My advice would be to move forward and do these deals, do not use the 'correct' terminology, you are just interested in buying and selling stuff. You are half way there, IMO, b/c I would assume the people in the town already place you at a certain level b/c you own a car lot and an apt building, you know what I mean? I know people in the town think we are very well off, but we are extra friendly to them, so I think they respect us.
Anyhoo, sorry for the babel, hope you fould a nugget in there!
TT
If you do what you say you are going to do with buyers & sellers when you try to contract with them, be straight with them about if you are really interested in their property or not (rather than leading them along) and get a reputation of always following through on your actions, I would think that most people would view you as a honest, hard working person that is willing to take over their problem real estate, rather than trying to "steal it from them." Unfortunately, being a used car lot salesman may create the perception that they might not be able to trust what you tell them, but if you are known as a fair businessman in town now, I don't see why that same reputation will follow you in doing your REI.
Taxjunkie
communicate regularly with them, and play it straight (i.e., you are in the business of buying properties, holding and selling them for profit)
loanwizard,
My dad owned a used car lot in a town smaller than yours. He had a reputation for ALLWAYS doing what he said that he would do. If he quoted a price that is what he would pay for it or sell it for.
Since he was in a small town cars were not the only thing that he did. He was known to be willing to buy anything. So people would bring him deals of all kinds. They knew that he would not pay top dollar but that he would do what he said he would do.
Shawn,
Glad to have you here at TCI, your expertise as an experienced investor and one who is willing to help the new person is much appreciated.
As one old sleds for slugs guy to another, I would not have a concern about 'helping' people in your small town.
You noticed I said 'helping' someone who really needs help. The win/win situation applies anywhere big city or small city, it is about did you make someones life a little easier by taking a distressed sitution and putting a smile on someones face.
There goes Shawn he is the guy who helped us out, when no one else knew what to do. Apply your knowledge in a positive manner.
Next thing we know you will be running for Mayor.
Welcome on board this board, you are one of the good guys, the towns folk will see it that way also.
John $Cash$ Locke