Thursday, September 9, 2010

Young Bucks go Old School!!

I love this story about two of our rising stars! Scott Seal and Jeff Gahagan, both members of the echo-boomer, thirty something crowd recently went old school on a real estate deal and reaped the rewards.
The Opportunity:
Scott and Jeff secured a listing on a 22,000 sf industrial building in Fullerton, California. The owner had recently vacated the building that his business had occupied for several years. the owner listed the building for sale with Scott and Jeff. Scott and Jeff did a good job educating the owner on the market conditions and the owner complied and priced the building competitively.

Old School Marketing:
Scott and Jeff printed 100 hard copies of the building literature each day for several weeks and "hand delivered" these brochures to industrial occupants in Anaheim, Orange, Fullerton and the cities immediately surrounding the building. They also spoke to the neighbors...a mistake that many of us make but not talking to the neighbors. For weeks nothing occurred but Scott and Jeff continued their diligent "shoe leather" techniques.

After weeks of passing out 100 brochures per day, one morning the phone rang. An occupant (that had received a brochure) was in front of the building that Scott and Jeff had listed. The conversation went something like this...Hi this is XYZ and I am in front of your listing. One of you two dropped a brochure by my office. This building looks like a good match for my business, I am pre-approved for $4,000,000 and have been looking for the right deal to buy. Can one of you meet me at the building so that I can tor the inside? I sit twenty feet away from Scott and Jeff and their post call departure registered on the Richter scale! The tour went as expected and the occupant confessed that he was prepared to make an offer that day on another building. If the brochure had not arrived when it did, the occupant would not have known about the opportunity and would have purchased another building! The offer on Scott and Jeff's building was accepted by the owner and an escrow was created.

Too Good to be True?
The escrow proceeded smoothly until the preliminary title report referenced an ownership entity that differed from reality. Apparently, a sibling who had sold their business interest was still listed as an owner. Once again, the old school approach won out as the owner searched through 30 years of records and discovered an unrecorded quit claim deed that evidenced the siblings intentions. The title company recorded the deed and deal closed a few days later.

A Happy Ending:
Scott and Jeff benefited from the hard work in marketing this listing. The owner got a good price and the occupant bought a building perfectly suited for his business. Great job Scott and Jeff!