THE QUESTION:

Because I think it's in the millions, I haven’t called on this ad. It’s been in the newspaper for the last several weeks,

What would you do Bill? Would you call anyway? And if so, how do you deal with that expensive a property?

The ad reads: "Fantastic ocean front property in Del Mar, Ca. 2 owners in 63 years. Illness forces sale. Call now!"

Regards,

Julie


THE GATTEN RESPONSE:

Julie, since when is “what you ‘think," prior to a prospecting call, of the slightest importance? And what if the property IS in "the millions?" Do you honestly have an aversion to owning a multi-million dollar property with no loan, no bank qualifying, no cost to you, no payments by you and no risk?

Immediately call and ask the poor sick seller if he or she would consider--for a full price offer--staying on the existing loan for a while, during which time you and your "partner (your resident beneficiary)" will take over all costs and on-going expenses of payments, management, repairs, upkeep, property tax and insurance...in exchange for being able to retire the loan in, say, 3 to 5 (or ?) years, at the end of which time you will repay the sellers 100% of their currently existing equity. This gets them full price, builds a net egg and defers capital gains taxes (which could be in the hundreds of thousands of dollars if your value assumption is correct).

Sandy, I really need to tell you the following story (I think you’ll see why):

Several years ago a woman was given a brand new free and clear Porsche 911 in a divorce settlement, but a caveat in the settlement was that she was allowed to drive it only for six months. At the end of her allotted time, the six months, she was ordered by the court to sell the car for any amount she wanted to, but she had to turn over 100% of the proceeds to her ex-husband, for whom she apparently harbored some disdain (‘been there, ‘done that…’know the feeling. Even all these year later I am still referred to as what sounds like a “bass pole”…whatever that means…I don’t even fish).

After the woman’s allotted six months were up, she placed an ad in the San Francisco Chronicle that read: "For Sale. One year-old Porsche Targa 911. $1.00. Call now. Won't last."

Sandy, do you know that it took two days before someone finally called on that ad and bought the car for a dollar (about $50,000 worth of car)? At least a half million people saw the ad and didn't call because of having formulated a limiting falsehood in their heads that started out: "...because I 'think'..."

Don't EVER do that again! I know where you live. Don’t MAKE me come over there!

Bill

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