How do you be resourceful in times of extreme adversity? We’ll talk about that in today’s episode.
So I had something happen to me recently. It’s happening to me right now actually, which I think is a great example of how to be resourceful. You know, it’s not a huge deal and there’ve been much more dramatic times in my life, but I still think this is a great example. I’ll talk about my three-year strategy in a different episode, but every three to four years, I sell whatever primary home I’m living in. That’s because of the fact that if you live in a primary home for, I believe right now it’s three years and then you sell up to $500,000 in gain is tax-free. So what I do is I buy a home that I like, but it’s not exactly what I want. It’s not exactly my dream home, but I like it.
The market, more importantly, the market likes it. So I buy it. I live in it and it goes up in value. So my current home has gone up about $700,000 in value. The market’s super hot right now, if there ever was a time to cash out it’s right now. So I’m selling my home. At the same time, my home is 8,000 square feet on the water. It is all glass, like half of the house is all glass. So there’s a lot of maintenance, a lot of maintenance I didn’t realize. People told me, Dan, it’s going to be a lot of maintenance. Of course, I didn’t listen. The amount of time, and yes, I have a house manager. I have people that take care of all this, but still, especially during COVID and all this, contractors and people coming in and out it’s distracting and I’m one for major focus.
So I want to buy a condo and I want to buy a condo for two reasons. Number one, it’s going to allow me to be able to focus and not have to deal with a bunch of maintenance and issues like that and just allow me to get more work done. Also, because normally you would not buy a condo if you’re looking to do this strategy where you let it appreciate in value and then sell it because condos generally do not appreciate in value as homes do. Unless you live in downtown St. Petersburg, Florida, where the market is wild for condos because of the expanding downtown area. Pretty much honestly it rivals, if not, in some cases, beats single-family homes. So there are several condos at this building that I really like down downtown and I want to get one of them.
So I have a realtor and all that we go in to look at think it was like three or four units there. For some reason, the same realtor has virtually all the listings in the building. She has all of them, and we’re looking at the comparables and we’re looking at the units that sold previously and on units that and keep in mind, the market is crazy right now, especially down here in Florida. It’s a seller’s market, the prices are crazy, but even that 1.9 million to about 2.1 million is the range where, even in a hot market, that’s what they’re selling for. We looked at this one unit that all day long, 1.9, right? That was a reasonable fair offer. In fact, it’s a generous offer based on units that were pretty much exactly the same, but had more upgrades sold within two weeks prior for that number 1.9, 1.9 million.
Well, this realtor has this unit listed for 2.3 million and we’re like, what is going on? Where is she getting this number from? Right. She’s got three, four, six condos all listed for very similar, three to 400,000 above market. Keep in mind when I say above market, I mean above fair market and fair market right now is extremely high. One of the condos was purchased under two years ago and she’s asking a million dollars more than it was bought for, it’s nuts. So we make an offer at 1.9 million, which is a reasonable offer and she doesn’t even counter. She just says “No counter”. Okay. That’s kind of odd. She says “You’re not anywhere near close to the asking price.” I said, “Well, you’re the one that put your asking price $400,000 higher than where the comps are.”
So, okay, fine. So we go and put in two more offers on other units again, she’s got the listings. All of them come back the same no counter. We even upped our offer a little bit and we’re like, “What do you mean no counter?” So she starts being extremely difficult to work with, telling my realtor there’s no point showing our offers to the owners, which as far as I know, you can’t even do that in real estate. So anyway, I don’t want to go crazy on this. The point is she’s extremely difficult to work with, and she’s trying to monopolize the building because right now, she has all the listings. So in her mind, she can charge whatever she wants, because she has all the listings, right? So there’s nobody to fight her on It. So after going back and forth and trying to be reasonable with this woman, she just is not wanting to play ball at all, doesn’t even want to show our offers. Then she starts getting rude with my realtor so okay.
Now you may think at this point, Dan, what are your options? She’s got all the listings. You’re just going to have to wait until another realtor grabs a listing and what can you do? Well, this right here is a perfect example of not telling yourself, “Well, what can I do?” and just not being resourceful. So here’s what I’m doing. We are getting addresses for every single unit that is a unit that I would be interested in, in the entire building and sending a personalized letter with a picture of me and my son to each owner and asking if they want to sell. So we are going to cut her right out of the deal. As well I’m running a geo-targeted Facebook ad to everybody who lives in that area. I’m basically saying, “Hey, do you live at this building? I want to buy from you.” I am going to buy a condo there and I’m probably going to get it for hundreds of thousands of dollars less because it’s going to be a for sale by owner situation, the way we’re doing it now. They’re going to save two, 300 grand in closing costs. So I’m going to get it for less money. They’re probably not going to ask an absurd price because this realtor is just out of her french-fried freaking mind. Statistically speaking, not everybody in St. Pete can be bat crazy.
So that’s what I’ve decided to do and that’s what we’re implementing over the next few days. So this right here, I mean, you have to understand, right. I remember watching some interviews with David Goggins. If you haven’t heard of David Goggins, he took the Seal training three or four times. The guys just talk about being resourceful. He was in a race, a 24-hour race where basically his feet were bleeding and they were fractured and all this stuff. So he literally tied a rope or something around his ankle to cut off the blood circulation so he couldn’t feel his feet and finished the race. Now, I don’t know if I would do that. That’s on a scale of one to ten, that’s a15 on the resourcefulness scale.
The point is, there are so many things in your life that you think you’re backed into a corner, you’re blocked. There’s a roadblock that you can’t jump over and it’s too high you can’t jump over it. Sometimes you have to realize, Hey, grab a shovel and dig under it. There are options. There are things you could do. I always do this. I always say, pretend that there was an asteroid heading towards earth and it was going to destroy the earth. All of us are going to become extinct and the president of the United States calls you up and says, “Dan, if you don’t figure out how to buy a condo in this building in the next 30 days, the asteroid is going to hit the earth and we’re all going to die. Your family, all the people, you know, friends, the human race. But, if you do find a condo there, the asteroid will miss us. Don’t ask me why. It’s just the way it is.”
Well, would you be able to do it? Of course, you would. It’s the old gun to the head method. With a gun to your head could you do it? Yes, I could. Well, then there’s nothing stopping you in the first place, because if you can figure out a way to do it if there was something in extreme peril if you absolutely had to, then you can figure out a way to do it anyway. So stop trying to only put in the effort when the entire fate of the human race is on the line or something crazy like that, and just get it done. People underestimate the amount of effort it takes to achieve great things. “Oh, well, I’m just not good at that. I’m an introvert. I’m…” Excuse, excuse, excuse, excuse, excuse, excuse. There are no excuses. You can make it happen. You’re just not willing to do it. Period. If anybody has ever made it happen, you can make it happen. There is no excuse.
So that’s how I’ve lived my life and that’s how I’ve decided to pursue anything I want. They told me I couldn’t write a book in 30 days and have it on seats at the FHL conference when I was asked to speak at FHL by Russell Bronson. I said, “Well, wouldn’t it be great if I could put my book on seats in the next 30 days?” They said, “Well, Dan, have you written your book yet?” No. “Well, that’s impossible. You got to write the book, edit it, have it ready to go print and on seats in 30 days, it’s impossible nobody’s ever done it.” Well, guess what? 30 days later it was done. It was finely tuned and edited. It was on seats. We made about $2 million in revenue, just from giving away five, or 6,000 books for free. It also became a Wall Street Journal bestseller. So don’t tell me it’s impossible. Alexander The Great almost took over the world at 17. Yet we sit here and say, “Oh, he’s just a kid.” No. Don’t give me that. “He’s just a kid. You can’t expect that much, they’re just kids.” Well then how come thousands of years, hundreds of years ago when all those kids had was a stick and a rock, they almost took over the world. You know why? Because back then there was nobody there to tell them that they couldn’t.
So think about that. The next time you have a goal and you think that you have no options, that your backs are against the wall, that you’re roadblocked, that the world’s working against you, whatever head trash is up in that old noggin of yours… remember that, and just get it done. I’ll see you in the next episode.