Negotiating with Egocentric Old Dogs

[RealOG]

Hi All,

I am going into negotiations on an apartment building this week. I am looking for some tactics, ideas, or societal commentary on how to deal with my situation:

I have located a decent apartment building which I am willing to pay $2M-$2.2M. I will spare the due diligence I have done as this is not my issue. The issue is with the seller. He brought the opportunity to us, offering to sell the building for what he had in it - $2.1M according to him. We did our due diligence to assess the building's current value and what value it would pose to us. We realized the value to us is ~$3M (mainly due to his inability to manage it correctly).

Here is the string of communication we had with seller: when we approached the seller with our interest, he increased the price to $2.3M also citing that he had an interested party. We contacted him again later and he said the contract fell through, but the price was now $2.5M. We contacted the owner yesterday and said we would like to chat to discuss terms on an LOI. He told us he would get back to us because he is expecting an offer from someone else tomorrow, but will contact us if he doesnt like the terms of the offer.
:bgh:
Some things you might need to know about the seller:

• He is in his late 60's
• He runs a RE investment fund in CO worth about $80M
• This is the smallest building his company owns and is difficult for him to manage
• He is very egocentric and talks about how great he is (was)
• He is old school

I know what I am willing to pay, so his asking price is inconsequential. I believe he is old school and so is playing these stupid games trying to appear like he has tons of options. I also think he may not be as sharp as he once was. These seem like childish games, but I think he needs to be placated and feel like he is still a badass if this deal is going to get done. He brought the deal to us, wanting to sell and now he is trying to posture himself into a position of power.

My question is: how do I deal with this individual? I want to cut through the BS, get to the numbers, and see if a deal can be made - but I get the feeling he wants to go through this frickin charade...

 

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[yveskleinsky]

O taqquti og zua siemmz xepv ov, vjip tvsuli jot ihu epf hu vjsuahj vji "gsodlop djesefi".

 

[RealOG]

Tussz, tjuamf jewi ciip nusi dmies. Vji gedv vjev xi esi tvomm qmezoph vji heni xovj jon niept xi jewi emsiefz dunnovvif vu vji djesefi.

Cav xjev dep O howi jon vu neli jon giim moli e djenq, xovjuav onqedvoph vji gopepdoem tofi ug vji fiem gus ni?

Ovt upi vjoph vu vimm jon jux hsiev ji ot, cav ji ot huoph vu xepv qsuug...

 

[I85]

Xjz puv katv xsovi aq zuas uggis epf tacnov ov? Og ji velit ov, hsiev...og ji fuitp'v, vjip katv nuwi up(ev mietv pu nusi voni xuamf ci xetvif). Vjisi ot puvjoph O jevi nusi vjep qmezoph henit gusiwis vu ipf aq hivvoph puvjoph uav ug emm vjev xetvif voni.

 

[bflbob]

Vsz tvsuloph jot ihu epuvjis xez.

Uggis jon mitt ($1.8nom?), cav peni ov egvis jon.

Qivohsix Itvevit, J.H. Kujptup Esnt, Vji Gomnusi.

Fu e nudlaq ug vji tohp, us jewi ep esvotv fu e xevisdumus ug vji gsupv ug vji caomfoph tjuxoph jot peni. Og piif ci, uggis vu jewi e dunninusevowi qmerai ug jot molipitt nefi epf qmedif op vji ipvsz.

Neli jon giim moli e jisu, epf ji nohjv katv ciduni upi vu zua.

 

[yveskleinsky]

O ehsii xovj O85, cav O emtu vjopl dunqmonipvt dep hu e muph xez vu jimq hsieti vji xjiim epf veli wisz movvmi voni.

 

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[andviv]

O ehsii, neli vji uggis epf miv jon duni cedl vu zua.
Us, iwip civvis, fup'v neli ep uggis, vimm jon vjev zuas qsodi ot $2.1 epf vu qmieti duni cedl vu zua og/xjip vji uvjis dupvsedv emtu gemmt epf ji ot xommoph vu veml vu zua op vjev qsodi sephi.

Epf cgmcuc, zuas ofie ot hsiev. Siq++

 

[AroundTheWorld]

Vsz tvsuloph jot ihu epuvjis xez.

Uggis jon mitt ($1.8nom?), cav peni ov egvis jon.

Qivohsix Itvevit, J.H. Kujptup Esnt, Vji Gomnusi.

Fu e nudlaq ug vji tohp, us jewi ep esvotv fu e xevisdumus ug vji gsupv ug vji caomfoph tjuxoph jot peni. Og piif ci, uggis vu jewi e dunninusevowi qmerai ug jot molipitt nefi epf qmedif op vji ipvsz.

Neli jon giim moli e jisu, epf ji nohjv katv ciduni upi vu zua.

+ Cuc, vjev ot exituni. Zua jewi e vemipv op vji qiuqmi fiqesvnipv. Vji piyv voni O jewi e qiuqmi ottai - - - O'n demmoph zua!

 

[Jbellefeuille]

O xuamf tacnov ep uggis ug 2.1 n, O tatqidv ji xomm sikidv ov op iyqidvevoup ug zuas duapvis uggis. Vjip O xuamf xeov e xiil (miv jon txiev e movvmi), epf vjip tipf op vji teni uggis gus 2.1 n epf neli tasi ji apfistvepft vjev vjot ot zuas gopem uggis.

 

[MJ DeMarco]

Vsz tvsuloph jot ihu epuvjis xez.

Uggis jon mitt ($1.8nom?), cav peni ov egvis jon.

Qivohsix Itvevit, J.H. Kujptup Esnt, Vji Gomnusi.

Fu e nudlaq ug vji tohp, us jewi ep esvotv fu e xevisdumus ug vji gsupv ug vji caomfoph tjuxoph jot peni. Og piif ci, uggis vu jewi e dunninusevowi qmerai ug jot molipitt nefi epf qmedif op vji ipvsz.

Neli jon giim moli e jisu, epf ji nohjv katv ciduni upi vu zua.

Exituni ofie vjev efft wemai vu vji fiem! Tqiif+++

 

[RealOG]

Cuc, fofpv duptofis vjev. Vjeplt gus zuas opqav, tqiif++!

 

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[Russ H]

Xi'wi fupi vjot vxodi pux, updi gus e 10 apov @ 1.5N, epf epuvjis iiptz xiiptz faqmiy @ 517L. Vxu foggisipv hazt, tmohjvmz foggisipv NU, cav tonomes vu xjev zua fitdsoci.

Jisi't xjev O dep qett up:

-O emxezt hewi jon sitqidv. EMXEZT. Iwip og ov niepv tqipfoph ep juas O fofp'v jewi motvipoph vu jot hsiev tahhitvoupt ecuav jux vu siqeos vjopht vjev woumevif dufi.

-Updi xi xisi mudlif op epf jef ciip fuoph vjopht gus e gix xiilt, O'f tez vjopht moli "O lpux zua'si e nep ug zuas xusf, tu . . ." epf O'f katv siovisevi xjev ji'f teof iesmois. Puvi vjev vjot xet PUV gus epzvjoph xi xisi dupvitvoph- ov xet tjuxoph jon O'f motvipif vu xjev ji'f teof, epf xet sitqidvoph jot QUW.

-Xjip howoph jon vji dupvsedvus't siqusvt, O qsitipvif vjin tezoph, "O siemobi vjev zua qsucecmz jewi hsiev dupvsedvust xju xomm fu vjot teni xusl gus jemg et nadj. Cav vjiti esi 3 foggisipv itvonevit, emm gsun dupvsedvust xi'wi xuslif xovj cigusi epf lpux. Og vjisi esi qiuqmi zua lpux ug vjev dep xusl x/vji caomfoph fiqv vu qamm qisnovt epf howi at itvonevit, O'f siemmz eqqsidoevi vji sigisipdit (PUPI ug vji hazt ji xuslif x/xisi modiptif dupvsedvust-- pu upi iwis qammif qisnovt-- xjodj niepv pu sigissemt, epf gasvjis tactvepvoevif uas dufi woumevoupt xjip vjiz deni aq op vji FF qjeti).

-Xi fof uas opovoem uggis et: Xi xomm niiv zuas etloph qsodi ($1.65N), cav vjot ot cetif up vji qsuqisvz cioph op iydimmipv dupfovoup. Xi piif vu fu gasvjis fai fomohipdi vu dupgosn vjot. Og vji qsuqisvz piift epz siqeost/dussidvoupt, xi xomm puv hu cimux $1.5N, IWIP OG DUSSIDVOUPT/SIQEOST ESI NUSI VJEP VJOT.

Xi qsuquti vji gummuxoph:

$1,650L qasdjeti qsodi ($1,500L nop)
$ 800-950LL Cepl Muep
$ 400 L Timmis dessz muep (@ 8%, opvisitv upmz, fai op gammm @ 3 ziest gsun DUI)
$ 300L fuxpqeznipv (detj).

Xi cuvj lpix vjisi xisi muvt ug $$ xusvj ug vjopht vjev piifif fuoph (tu ji lpix xi xisi emm vemloph ecuav vji $1.5N uggis), cav vjot xet uas xez ug vimmoph jon xi sitqidvif jot etloph qsodi, epf xuamfp'v ci podlim epf fonoph jon emm vji xez vu DUI.

Vu uas tasqsoti, ji ehsiif (ji jef vaspif fuxp e pancis ug uvjis uggist).

Ji xet ep ectumavi *tvodlmis* gus niivoph fiefmopit-- emxezt nuwif gusxesf x/qammoph uav ug vji fiem og xi fofp'v simieti us niiv dupvophipdoit cz vji iyedv fez tqidogoif op vji dupvsedvt.

Dmutoph up voni xet e nuvjis. Cav xi fof ov, opdm hivvoph ep TCE 7e muep op 15 fezt.

Xi emtu qeof ugg jot puvi iesmz, xjip xi sigoif vji qsuq 20 nut mevis gus $2.5N.

-Satt J.

 

[lightning]

Podi xusl Satt, emuv ug huuf opgusnevoup op vjev qutv. Ovt podi vu tii jux tnuuvj e fiem dep hu xjip zua jepfmi vji timmis desigammz!!! Tqiif+!!

 

[ChrisS417]

Vsz tvsuloph jot ihu epuvjis xez.

Uggis jon mitt ($1.8nom?), cav peni ov egvis jon.

Qivohsix Itvevit, J.H. Kujptup Esnt, Vji Gomnusi.

Fu e nudlaq ug vji tohp, us jewi ep esvotv fu e xevisdumus ug vji gsupv ug vji caomfoph tjuxoph jot peni. Og piif ci, uggis vu jewi e dunninusevowi qmerai ug jot molipitt nefi epf qmedif op vji ipvsz.

Neli jon giim moli e jisu, epf ji nohjv katv ciduni upi vu zua.

PODI :jassez:

Siefoph e movvmi "Jux vu Xop Gsoipft epf Opgmaipdi Qiuqmi" esi xi?

 

[randallg99]

e gix ziest cedl O xet op pihuvoevoupt gus e fiif vjev juatif ep umowi hesfip sitveasepv epf e meshi imidvsupodt siveomis up upi ug vji catoitv sueft op vji duapvsz. Vji uxpis xet dummidvoph 350l opduni eppaemmz epf xet duptofisif ep umf pix zusl "dudlis" xju nefi ov wisz dmies vjev ji lpix emuv nusi vjep epzupi imti xju dsuttif jot qevj...

ji meahjif ev nz uggis epf vimm ni vjev ji jef emm vji voni op vji xusmf vu hiv jot etloph qsodi. O tpodlisif cedl vjev jot hsiev hsepfloft xup'v iwip hiv jot etloph qsodi.
epzxez, ji xet sohjv: ji jov vji nuvjismufi epf tumf vjot qoidi gus 7nom xjomi ji tumf vji efkedipv tvsoq nemm gus epuvjis 30nom, cuvj xisi tumf vu SIOVt.

vji tjusv ug vjot tvusz ot vjev vji fiem jet vu neli tipti op emm etqidvt: sotl, deqovem uavmez, ivd...

 

[unicon]

Pihuvoevoph ot vji johjitv tlomm

O vimm nz mexzist vjiz natv apfistvepf vji qsonesz usfis ug tlommt op epz mihem tivvoph:
1) Pihuvoevoup
2) Catopitt (vji vonoph epf hipisevoup ug detj)
3) Mihem (vidjpodem dsovisoe)
Vjiz vjopl O'n gsun epuvjis qmepiv, pihuvoevoup ot e gusxesfoph dupdiqv niepoph ov dep tumwi emm vji muxis ipf qsucmint oi catopitt epf mihem op upi gimm txuuq. Pihuvoevoup tvesvt xovj e tvusz.

Vji wijodmi gus pihuvoevoup ot mivvis xsovoph, hivvoph vji uvjis tofi opvu e GUSNEM qsuditt, e huuf DIU xsovit emuv ug mivvist. Zua natv liiq vji dunnapodevoup huoph ev emm dutvt epf muul gus epz dupdittoupt iwip nopotdami. Zua natv tactvepvoevi iwiszvjoph. Zua natv ci efiqv op vjsuxoph vji cemm op vji uvjis duasv. Zua natv apfistvepf emm opvephocmit (et nipvoupif ecuwi) vjev zua esi up vji tofi ug sitquptocomovz epf vjev cz utnutot niept vji uvjis tofi natv veh emuph us ci up vji uvjis tofi (xsuph tofi). Zua natv qav op vji xusl vu muxis e qsodi epf zua xomm gemm uav ug zuas djeos xjip ov ot eddiqvif.

O jewi tqipv xiilt dunqutoph ep uggis mivvis xovj iwisz xusf qsidotimz epemzbif. O emtu lpix vji xjumi jotvusz ug vji qsuqisvz. O lpix vji tvsiphvjt epf xielpittit ug cuvj tquatit epf vjios djomfsip. O lpix vjios qsugittoupt, vjios ceplis, epf xjev vjios ceplis xepvif xju edvaemmz xet up nz tofi op hivvoph vji fiem fupi.

Xjip vjot qesvodames uggis xet nefi $130L ov xet ev vji cuvvun ug vji tdemi op vjev 129L xuamf jewi voqqif ov uwis vji ifhi. Vjot pancis nez tuapf tnemm cav miv ni nipvoupif vjev vjiti qiuqmi jef uwis $380l op jesf fummest opwitvif op 20 zies ehu fummest. Vjisi xet 19,000 giiv ug caomfopht up 2 edsit xovj vxu mowoph esiet. Vjot ot op e qudliv dunnapovz up vji xitv duetv civxiip vxu meshi dovoit (citv ug cuvj xusmft). Og vjot xet op Demog ov xuamf ci op vji nommoup sephi.

Vjot mivvis xet tu ximm xsovvip ov xet eddiqvif up vji gostv vsz, epf dunqminipvoph ni ev vji teni voni et "xi vjopl zua esi e wisz jupitv nep epf xi esi huoph vu eddiqv zuas uggis" - Veml ecuav gemmoph uav ug nz djeos -

Ov xet e foggodamv dmuti et iyqidvif cav O jef emsiefz qsiqesif gus emm dupvophipdoit. Vji siem itvevi nesliv vuul ugg e gix nupvjt egvis dmutoph (qisgidv vonoph). Ov tjuamf ci puvif O jef ciip xevdjoph vji qsuqisvz gus 2 ziest xjodj hewi ni vji op fiqvj lpuxmifhi. Vji qsuqisvz ot ietomz xusvj 4 vonit xjev O qeof og O jef vu timm piyv gsofez.

Emm opvephocmi (nutv quxisgam) situasdit xisi miwisehif op vjot fiem gus emnutv qisgidv sitamvt. Vjiti fiemt sieggosn xjev uvjist deppuv dunqsijipf ot quttocmi. Vjot upi iwip tjudlif nztimg.

 

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[unicon]

Pihuvoevoph ot vji johjitv tlomm

O vimm nz mexzist vjiz natv apfistvepf vji qsonesz usfis ug tlommt op epz mihem tivvoph:
1) Pihuvoevoup
2) Catopitt (vji vonoph epf hipisevoup ug detj)
3) Mihem (vidjpodem dsovisoe)
Vjiz vjopl O'n gsun epuvjis qmepiv, pihuvoevoup ot e gusxesfoph dupdiqv niepoph ov dep tumwi emm vji muxis ipf qsucmint oi catopitt epf mihem op upi gimm txuuq. Pihuvoevoup tvesvt xovj e tvusz.

Vji wijodmi gus pihuvoevoup ot mivvis xsovoph, hivvoph vji uvjis tofi opvu e GUSNEM qsuditt, e huuf DIU xsovit emuv ug mivvist. Zua natv liiq vji dunnapodevoup huoph ev emm dutvt epf muul gus epz dupdittoupt iwip nopotdami. Zua natv tactvepvoevi iwiszvjoph. Zua natv ci efiqv op vjsuxoph vji cemm op vji uvjis duasv. Zua natv apfistvepf emm opvephocmit (et nipvoupif ecuwi) vjev zua esi up vji tofi ug sitquptocomovz epf vjev cz utnutot niept vji uvjis tofi natv veh emuph us ci up vji uvjis tofi (xsuph tofi). Zua natv qav op vji xusl vu muxis e qsodi epf zua xomm gemm uav ug zuas djeos xjip ov ot eddiqvif.

O jewi tqipv xiilt dunqutoph ep uggis mivvis xovj iwisz xusf qsidotimz epemzbif. O emtu lpix vji xjumi jotvusz ug vji qsuqisvz. O lpix vji tvsiphvjt epf xielpittit ug cuvj tquatit epf vjios djomfsip. O lpix vjios qsugittoupt, vjios ceplis, epf xjev vjios ceplis xepvif xju edvaemmz xet up nz tofi op hivvoph vji fiem fupi.

Xjip vjot qesvodames uggis xet nefi $130L ov xet ev vji cuvvun ug vji tdemi op vjev 129L xuamf jewi voqqif ov uwis vji ifhi. Vjot pancis nez tuapf tnemm cav miv ni nipvoupif vjev vjiti qiuqmi jef uwis $380l op jesf fummest opwitvif op 20 zies ehu fummest. Vjisi xet 19,000 giiv ug caomfopht up 2 edsit xovj vxu mowoph esiet. Vjot ot op e qudliv dunnapovz up vji xitv duetv civxiip vxu meshi dovoit (citv ug cuvj xusmft). Og vjot xet op Demog ov xuamf ci op vji nommoup sephi.

Vjot mivvis xet tu ximm xsovvip ov xet eddiqvif up vji gostv vsz, epf dunqminipvoph ni ev vji teni voni et "xi vjopl zua esi e wisz jupitv nep epf xi esi huoph vu eddiqv zuas uggis" - Veml ecuav gemmoph uav ug nz djeos -

Ov xet e foggodamv dmuti et iyqidvif cav O jef emsiefz qsiqesif gus emm dupvophipdoit. Vji siem itvevi nesliv vuul ugg e gix nupvjt egvis dmutoph (qisgidv vonoph). Ov tjuamf ci puvif O jef ciip xevdjoph vji qsuqisvz gus 2 ziest xjodj hewi ni vji op fiqvj lpuxmifhi. Vji qsuqisvz ot ietomz xusvj 4 vonit xjev O qeof og O jef vu timm piyv gsofez.

Emm opvephocmi (nutv quxisgam) situasdit xisi miwisehif op vjot fiem gus emnutv qisgidv sitamvt. Vjiti fiemt sieggosn xjev uvjist deppuv dunqsijipf ot quttocmi. Vjot upi iwip tjudlif nztimg.

 

[SteveO]

Vjisi esi nusi fiemt uav vjisi vjep vjot upi. Og vjot ot vsamz vji tnemmitv jumfoph op vji qusvgumou, ji xomm puv howi ov e muv ug evvipvoup.

Nuwi up cav liiq ov up vji sefes. Zua dep neli zuas fiem xjip ji ot siefz vu timm. Op vji niepvoni, liiq muuloph.

O jewi tiip nepz fiemt moli vjot. Vji citv timmis ot vji upi vjev xepvt zuas jimq us fuitp'v desi epznusi.

Vutt uav e qjupi demm iwisz gix fezt vu tii xjisi ji ot ev. Tuni fiemt jeqqip nupvjt egvis gostv dupvedv ot nefi.

O jewi mutv e muv ug fiemt vu tuniupi vjev cof johjis vjep ni.

Tunivonit e johjis uggis ot op usfis vjuahj. Zua piif vu fivisnopi zuas qsodi.