It’s easier to sell something when you list the faults, Judd Weiss explains:
I did this all the time when I sold commercial buildings, like an apartment complex. “The pipes are crap in these units, they need to be replaced. Over here there’s some f—ing pigs in this unit, their carpet smells like cat piss, and I think they literally have someone sleeping in the walk in closet. But f— all that, the building cashflows very well as it is, rents are way under market so you’re looking at much better future cashflow income as tenants turn over. And most important, that big retail development around the corner is nice and will attract better quality tenants to the area and even better retail, which will attract even better quality tenants, and so on and so forth. Unfortunately, because this building was so poorly managed by the previous owner, there’s a lot of work to do and you’ll have to deal with the scum of society living here for the time being. But that’s why it’s such a good deal in this area, and besides, your management company will deal with the riff raff while you turn the property around and reap the rewards in an improving location.”
Guys, that’s how you get someone to move $3 million out of his bank account and leave a big f—ing smile on his face about it. There’s a lot going on here (boldness, clarity, leadership) but notice how important honesty is to the equation. Sane people just don’t make moves with that kind of money until they feel like they’ve got a good evaluation of the situation. Pretending that there are no problems with the property won’t make your client feel more comfortable. Your honesty is so appreciated because it is so scarce.