Right Kind of Crazy: A Deal Made in Heaven with Trust & Alignment

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Services for Real Estate Pros with Napa Consultants DRE00893924
https://activerain.com/droplet/5lDM

 

There is an excellent rule  in real estate cautioning all real estate personnel to get all the paperwork signed before working.  If you have the paper signed you have PROTECTION--There is wisdom in this, however, there are times when you need to throw caution to the wind (get crazy) and break the rules.

 

When we had a commercial real estate practice on the Westside of Los Angeles, a inuiry call came in as a result of an office building listing we had, located on a great street that was changing.  The architect who called me had a dream:

Find a piece of land that would accommodate a 25,000 square foot building on that same street, which he would design to his specs.  The owner of the land would be willing to do a build to suit.  He could then lease it the his growing architectural firm, and work out a deal to buy the building in 5-10 years.   He had a magnificent portfolio of buildings and shopping malls he had designed around the world.  

 

We knew of a parcel of land that would accommodate a building this size.  At one time, it had been listed by two agents we liked and trusted, and we were not sure if they still had the listing.

 

Ron called them, and they no longer had the listing, because the owner who was also a builder was considering a build to suit, and had permits for a 25,000 square foot office building.  Heavenly trumpets blared, and angelic harps played the moment we heard this!

 

We set up a meeting with all parties that afternoon...(go ahead and groan when I tell you that there was no paperwork signed with listing or representation!) And yes, we all knew the horrors of putting principals together.  But the angels kept singing, Hallelujah! Everyone got along like old friends!

 

That day we wrote up the deal at the conference table of the owner, which included commissions to both brokerages.  Everyone signed.  The next day,  leases were generated and approved by legal entities on both sides with minor revisions.  And we were all paid the first half of the commission and the remainder would be paid, upon the issuance of the certificate of occupancy for the building.

 

Six months later we were paid the second half.  Everyone was very pleased with the results, and referrals flowed to both sides of the deal...Sometimes, it pays to break the rules when trust is solid and purposes are aligned, and the individuals are honorable.  It was the right kind of crazy!  It was a deal made in heaven and all parties were in heaven with the results. 

 

This is our entry in the December Challenge authored by both Anna Banana Kruchten CRB, CRS and Carol Williams .  Thank you both for this creative idea!

 

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Written by Ron & Alexandra Seigel-

 

CAN YOU STATE HOW YOU ARE DIFFERENT AND BETTER THAN YOUR COMPETITION IN LESS THAN 30 SECONDS?

 

ABOUT:  Luxury Real Estate is a high stakes game. Commissions are substantial! We help luxury real estate professionals get to the listing table more often and win listings more frequently.  If you want to be the market leader, the personal or company brand that your target market thinks of first and refers most often, you need an Elevator Statement to accelerate the process.  We can get you there!

Your Elevator Statement is a succinct and persuasive summary of your extraordinary promise of value, your unique selling proposition.  In a time-starved world the attention span of your target market is shrinking.  To instantly convey what sets you apart from the crowd you need to be able to answer EACH ONE of these 3 questions in less than 30 seconds.: 1) What Do You Do?; 2)  How Do You Do It?, and;  3) How Are You Different?.  Can you state how you are different and better than your competition in less than 30 seconds?

Watch the video above to see and hear how we do it. 

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Rainmaker
1,297,055
Sheri Sperry - MCNE®
Coldwell Banker Residential Brokerage - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Ron and Alexandra Seigel,

What a great story and I like the references to a heavenly theme because it really did work that way, didn't it? The big landlord in the sky had your back. 

Dec 10, 2019 12:32 PM #20
Rainmaker
4,631,969
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Sheri Sperry - MCNE® the heavenly theme was inspired by Angel Morone who stands with his golden trumpet on top of the Mormon Temple in West Los Angeles.  The property was not far from there.  I saw it this morning as we driving in BH, and it was beautifully decorated.  A

Dec 10, 2019 01:02 PM #21
Rainmaker
4,631,969
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Carol Williams One of our real estate developer clients always said, a contract is as good as the paper it is written on.  A

Dec 10, 2019 01:03 PM #22
Rainmaker
1,399,406
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

Hi again Alexandra,
I am of the belief that a verbal contract and handshake with an honorable person is worth far more than a fully executed contract with a dishonorable one.

Dec 10, 2019 02:22 PM #23
Rainmaker
144,313
Raymond Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

Contracts are not written for honest people.  I have found most people are honest and loyal.  I almost never used a contract for my painting company, just a handshake usually.  Glad to hear that kind of philosophy can be successful at times with in the right circumstances.  

Dec 10, 2019 05:03 PM #24
Rainmaker
3,033,944
James Dray
Fathom Realty - Bentonville, AR
Exceptional Agents, Outstanding Results

Morning Alexandra.

What a great story, it doesn't happen often.  Make it a great day

Dec 11, 2019 01:12 AM #25
Rainmaker
5,570,191
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Thank you very much for telling us about this transaction. Happy endings are good in business.

Dec 11, 2019 11:02 AM #26
Ambassador
2,935,979
Anna Banana Kruchten Broker/Owner, CRB, CRS
Phoenix Property Shoppe - Phoenix, AZ
602-380-4886

Hi Ron and Alexandra Seigel love this post! It truly is an example of the best possible way to do business with trust and honor - especially if we hear the angles playing music! I do believe many sales are handled like this, they certainly have been for us. it's a gift working with such fantastic people!

Dec 11, 2019 01:39 PM #27
Ambassador
3,089,354
Margaret Rome, Baltimore Maryland
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Ron and Alexandra Seigel 

Wonderful entry and sign of complete trust. After attorney review, signed and they all lived happily ever after. 

Dec 11, 2019 02:46 PM #28
Rainmaker
4,631,969
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Margaret Rome, Baltimore Maryland we have been very careful in picking out our team members in what we do now as well as our clients.  Life is supposed to be fun, and we are all in the same frame of mind.  And I am grateful for all our team, and they are scattered in the US: Oklahoma, Atlanta, Austin...A

Dec 11, 2019 02:53 PM #29
Rainmaker
4,631,969
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Anna Banana Kruchten CRB, CRS We love working this way.  And we have been blessed with people who have had the same values as we do. A

Dec 11, 2019 02:54 PM #30
Rainmaker
4,631,969
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

James Dray I have to say that at least 80% of our transactions were this way...and we culled those clients who were a royal pain.  A

Dec 11, 2019 02:55 PM #31
Rainmaker
4,631,969
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Carol Williams I agree 100% with you there.  A

Dec 11, 2019 02:56 PM #32
Rainmaker
4,631,969
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Raymond Henson we love working that way.  Integrity is a joyous experience.  A

Dec 11, 2019 02:57 PM #33
Ambassador
2,131,050
MichelleCherie Carr Crowe Just Call...408-252-8900
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

Isn't it wonderful when the transaction is truly "a God thing"?

Dec 11, 2019 10:31 PM #34
Rainmaker
3,259,790
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Wow loved the story and it almost sounds unbelievable here in Los Angeles! Just to have such  happy story and happy ending....now the question is what year was this? If it was in the 1980's then I can believe it... Deals were made over drinks and hand shakes:)) now days not so much,Endre

Dec 13, 2019 05:03 PM #35
Rainmaker
4,631,969
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Endre Barath, Jr. we really feel that it depends who are dealing with and their sense of honor.  That transaction was done in the late 90's.  Three years ago we did quite a bit of niche research on behalf of an agent team, set up meetings, met with various principals and generated contacts for them.  We agreeed that if any of these would turn into a listing or a sale, we would get a referral fee.  This work resulted in a nice listing as a result of our intensive work, and we did get paid. Since they had had a vacation planned on the two days of inspection, we agreed to meet the inspectors and open the house and stay there the entire time.  The only  paperwork filled out was for their broker and the title company to get paid.  The honor system is still alive and well.  

I firmly believe that if we had an opportunity to  do this again, we could contact the two guys in Los Angeles and swing that deal again on same terms and conditions. .We have had many long term relationships in our marketing and branding work, and we are priviliged to work with honorable people.   A

PS. no drinks were served.

Dec 14, 2019 05:07 AM #36
Rainmaker
729,323
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

Well, Ron and Alexandra Seigel, it worked for you to step outside the box. Your inclination was that everything was going to work out well and it did. Good for you! I would not recommend moving forward as that procedure being your standard practice. 

Dec 24, 2019 02:17 PM #37
Rainmaker
4,631,969
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

John Juarez we were very fortunate in working with agents who would never cross us, just as we would not cross them.  These were respectable business people and I would work with them again, and would not hesitate to call them for someone in Los Angeles.  A

Dec 24, 2019 02:20 PM #38
Rainmaker
3,259,790
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Alexandra indeed the honor system is alive, just on  a reduced scale, hope you had a Merry Christmas, Endre

Dec 26, 2019 09:02 PM #39
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