June 18, 2022
Joe Fairless

JF2846: How to Use Pain Points to Get Deals Done | Beyond Multifamily ft. Ash Patel


The Beyond Multifamily series is hosted by non-residential commercial real estate investor and Best Ever Show host, Ash Patel. Ash’s goal for this series is to introduce you to the world of non-residential commercial real estate investing and teach you how to look at and underwrite different commercial asset classes. 

In this episode, Ash uses some of his personal stories to illustrate how pain points and emotions are a part of real estate transactions, and how you can use them to your advantage. 

 

1. Pain Point #1: Having to Pay for a Storage Unit

While Ash’s first story is about gym equipment, not real estate, it still demonstrates how addressing a pain point can get a deal done. When he sought to buy some gym equipment from an ex-gym owner selling the gear out of a storage unit, he offered to buy out all the equipment. He also offered to put the storage unit in his name so the seller would no longer have to worry about paying for it as Ash took his time emptying the unit. 

 

2. Pain Point #2: High-Interest Loan

Ash is currently working on a strip center deal where the current owner had $400K in annualized interest rate loans. He saw that the seller was struggling to get his head above water, so Ash included in his offer an agreement to immediately pay off the loan with out-of-pocket funds before going in and refinancing. 

 

3. Pain Point #3: Needing to Sell Quickly

A residential realtor Ash knew reached out to him about a lakehouse the owners were desperate to sell. They couldn’t afford to keep the lights on or the propane tank filled, and in the middle of winter, frozen pipes were a threat to the property. They needed to sell fast. Ash made an offer at about half the initial asking price, but also agreed to immediately wire $20K to the current owners so they would have enough money to live on and fill the propane tanks in the month or so it would take to close. 

 

4. Pain Point #4: Racing a Deadline

Ash once purchased a vacant strip mall that someone had defaulted on. It was in receivership, and according to Ohio law, receivers can only hold a property for two years before selling. The clock was ticking for this seller, so Ash submitted a lowball offer just before the deadline, and it was accepted. 

 

5. Pain Point #5: Potentially Losing Belongings

A three-hole golf course was about to go to a sheriff’s auction in Cincinnati. The owner was unable to stop the auction from happening, and he had belongings in two buildings that he was desperately trying to salvage before they were forcibly removed. Ash offered to purchase the property before it went to auction and allow the seller as much time as he needed to move his belongings out. He also offered to assist with the moving process and pay for a storage unit. He was able to sign a contract to stop the auction and get the deal done.

 

 

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