Around 1998, I reviewed a little over 100 mortgage notes in Orange, Texas. The negotiations were with an attorney handling the estate of the late Mr. Houseman, a local real estate investor and cemetery lot salesman. Uniquely, Mr. Houseman had operated his real estate business out of a building within the cemetery, where he also serviced notes.
I flew down to Beaumont with three of my employees: Joyce, Christy, and Trina. Joyce, always eager to dive into work, sat down in Mr. Houseman’s chair to make some calls to rent a copier. Now, Mr. Houseman was a huge man, and his office chair was equally oversized but unfortunately broken. The moment Joyce began to ease into her phone conversation, she simultaneously eased further back into the chair, which flipped backward, sending her legs straight into the air. While remaining professional on the phone, the expression on her face was priceless, and it’s a memory that still makes us laugh. To this day, we tease her about it. Once we received the copier, the ladies spent the day copying files. While the team worked, I spent the day on the golf course with the attorney. It wasn’t just about the game; we shared laughs, exchanged stories, and built a genuine rapport. There was an easy camaraderie between us, a shared sense of humor that made the negotiations enjoyable. By the time we returned to his office, a foundation of trust had been firmly established.
When it came time to discuss the notes, I offered him 70% of the unpaid principal balance (UPB). He then showed me something intriguing: another offer from a larger company that offered 90% of the UPB.
Despite the higher bid, he chose to work with us. His reasoning? The representative from the other company, though businesslike and professional, came across as inexperienced and impersonal.
He didn’t trust that they could deliver on their promise. Perception, in this case, became reality. The other company was well-funded and reputable, with the capacity to fund far more than we could. However, they lacked personal touch, a crucial element in building trust and sealing the deal. That day, our approach of cultivating a genuine connection made all the difference.
My philosophy when working with clients is simple: be authentic. I strive to communicate at their level of understanding, put them at ease, and most importantly, earn their trust. Our goal isn’t just to close a transaction, but to foster long-term relationships and transform business associates into friends.
At its core, our work isn’t just about mortgage notes; it’s about people. Building trust and creating meaningful connections is what truly drives success in any business.