The Man Who Knew Too Much - Not the Film, That Guy from Wall Street

A few years ago I worked with a buyer who left Wall Street soon after the 2008 Crash and landed in the Florida Keys. He wanted to use his business acumen to purchase a business and live the good life in Key West. I will call my buyer "Wilbur.

Wilbur told me he had an uncle in New Jersey who owned a bar. Wilbur initially wanted to buy a bar. That would be the perfect after Wall Street job. Few bars are actually listed for sale in our MLS. I nosed around and found one, got the sales package, and sent it to Wilbur who scrutinized. Then one day Wilbur asked me '"Who do I buy my napkins from?" 

I told Wilbur he could buy his napkins from whomever he wanted. He did not believe me. In New Jersey bar owners had to buy everything from specific "vendors". I immediately envisioned Tony's Napkin Store operated in back of Bada Bing.

As I recall the asking price for this particular bar was over four million dollars. Wilbur said he could raise the funds. He submitted an offer that was way too low to be accepted. It wasn't accepted. It was ignored. I initially viewed this as a learning episode for Wilbur. I can see him not believing a realtor who sells houses. I don't think he trusts anybody.

Time passed. We looked into other ventures including another cash business - a laundromat. I remember the day we looked a the property. Two other potential buyers looked before and after us. It went under contract a few days after. Two things happened on this deal. First, Wilbur could not make sense of the numbers the listing agent had provided. I learned a long time ago that many cash businesses have two sets of books - one for Uncle Sam and second for their eyes only. Laundromats are notorious for that. This laundromat also had a small Cuban coffee and sandwich window that generated a lot of income. He could not see himself making cafe con leche Cuban coffee and sandwiches - he was from New Jersey. Second, Wilbur was slow in responding to a very well located and attractive property.  think that place went under contract the first week it was on the market. He who snoozes loses.

An agent in my office was getting ready to list a very well located cash business that catered to tourists. We did a couple of site visits just to see the volume of business the place did. Wilbur was impressed with the number of transactions he saw, but being a numbers guy, the numbers the seller provided did not make sense. We both assumed unreported transactions. Wilbur was prepared to copy the seller's business mode but he out what he did what he did or how much money the seller actually made. Wilbur submitted an offer which the seller did not counter. The business was sold to another investor. It is a very popular tourist attraction. 

One day several years ago a new MLS listing popped up that really excited me - a trailer park on Stock Island. As I recall the trailers were actually annual or monthly rentals. The owner was selling the trailers along with the park. The listing touted the profitability of the trailer park as a going enterprise. I immediately did a Google aerial view and saw that the property was located on the water. Visions of houses with boat docks appeared in my head. I scheduled a visit. Wilbur asked a lot of questions. I fished for potential sales price info. I got Wilbur to talk to a real estate attorney to explain the process of removing the trailers and developing the near two acre parcel. Wilbur was a worry wart. He could only see down side. He could only see hiring plumbers to fix toilets and patch roofs. He couldn't imagine rubbing elbows with the people who lived there whereas he wanted to rub elbows with the patrons of the Old Town bar he lost. I kept advising Wilbur to buy the property and sit on it. I said it had immense development potential. Someone else could be the developer. All he had to do was buy the property and sit on it. Wilbur declined.

Someone else bought the trailer park and the trailer park next to it. I assume the new owner hired a land planner and real estate attorney to get government approvals remove the former trailers and develop the ground to the point where it is today. The trailers, trees, years of debris are gone. Fill dirt has been added. The waterfront appears in the distance. Wilbur saw collecting rent from people who live in trailers. I saw long term profit. Wilbur got a real estate license. In Key West. Yeah Wilbur!

 

Key West Real Estate Throwback Thursday No. 18

From: November 18, 2017

The Case of the Gremlin Chasing Home Inspector

 

Three weeks ago I wrote a blog where I recounted my experiences as a law clerk in the Jefferson County Colorado court system while I was attending law school in the early 1970s. Judge Joseph P. Lewis was one of the judges I worked for. One day shortly after a criminal trial had begun, the judge gestured to me to approach the bench. When I got up there, the judge put his hand over the microphone and instructed me to call the Colorado Supreme Court to verify that the young attorney representing the defendant in the criminal proceeding was actually a lawyer. I will call that lawyer "Odd Bob".

I had never been asked to verify that any other lawyer was in fact licensed to practice law. This was a first! I made the call and learned Odd Bob was a licensed attorney. I went back inside the courtroom and told the judge Odd Bob was legit. The trial proceeded without anyone knowing the judge's concern about Odd Bob's competence. A short time later I told the story to two of my fellow law school classmates who clerked for other judges. I can't remember exactly how it came to pass, but each time Odd Bob appeared in court we all assembled to watch him.

Before I started to write today's blog, I went online and checked out Odd Bob's attorney status. The Colorado Supreme Court suspended him from practice in 1980. The court order stated "At no time during his representation of the (__name of client represented__) or during the pendency of this matter has Respondent (Odd Bob) recognized the errors enumerated above nor the inappropriateness of his action on behalf of his clients." In other words, Odd Bob was clueless as to why his professional conduct brought him before the Supreme Court for potential disciplinary action.

We all recognize the figure at the top of today's blog: he is Inspector Gadget.  I have this theory that after Odd Bob's license to practice law was suspended, he moved to Key West, changed his name to Inspector Gadget, and took a course to become a home inspector. He traded in his suit and briefcase for a uniform and an electronic gizmo which could theoretically detect gremlins not visible to the naked eye. I've watched Inspector Gadget point his gizmo all around a house seeking out gremlins hidden under Dade County Pine, behind drywall, or in an attic. I have never seen a house that Inspector Gadget inspected that did not have hidden gremlins.

A year or so after a customer of mine purchased a house a house, the customer called me to discuss his frustration over Inspector Gadget failure to notice a leak under the house. The customer was updating a bathroom when his plumber discovered a leak in sewer pipe suspended under the the joists.  The plumber stated the damage had been going on for a prolonged period of time and should have been readily observable during a normal home inspection. Inspector Gadget found gremlins but missed a leak. The home owner called Inspector Gadget to complain. Gadget apologized and refunded the price of the home inspection. I normally give my buyers a list of three or more reputable home inspectors to call to arrange for a home inspection. Inspector Gadget is purposefully not on that list - ever. Some buyers prefer to search for an inspector on their own. Ultimately the choice is that of the buyer. 

Wikipedia says this of Inspector Gadget: "Gadget is very powerful and loyal ..., but he is also very dim-witted, clueless, incompetent, oblivious, and gullible." The description reminds me of how the Colorado Supreme Court referred to Odd Bob's lack of awareness of his errors or inappropriateness of his conduct. Wearing a business suit and having a law license did not make Odd Bob a good attorney nor did wearing a uniform and possessing a gadget capable of finding gremlins make Inspector Gadget a competent home inspector.  

Retired Lawyers

Trues Story:  I wrote a blog about trying to sell a house listed by a Realtor who was also a retired lawyer. She had to lawyer-up the deal so much my buyer decided to forgo the house he loved and settle on another place just to get peace of mind. He was later shot to death inside that house. I blame the former lady lawyer-real estate agent as much as the guy that pulled the trigger.

I have sold several homes to sitting judges, practicing attorneys, and retired lawyers. I don't recall any of them trying to lawyer-up an offer I wrote. They tend to be cautious and check the numbers, decimal points, spelling, and dates to make sure I get the important things right. (So do most people.)

Every now and then a buyer has a family member or even a partner who is a retired lawyer from another state who offers to get involved in reviewing a contract. I think the retired lawyers think they may know more about selling or buying a house than local Realtors. Some offer lengthy revisions to contract forms with all kinds of legalese to protect the family member from the other party, the real estate agents, the inspectors, the surveyors, and others who may be tangentially involved in the purchase and sale of property. In short, they muddle.

Our real estate contracts are referred to as FARBAR FORMS. They are created in cooperation between the Florida Bar Association and the Florida Association of Realtors. The contract forms are updated twice annually to keep current with revisions to state and or federal law. Realtors are permitted to fill in the blanks and are not practicing law without a license. 

I recently spoke with a fellow agent about retired lawyers from far away states offering to help me do my job. She said "Retired lawyers come to Florida to practice the law that they are best at - malpractice. "

So You Think Key West Real Estate Prices Are High, Check This Out

I woke up earlier than usual today and was passing time on Twitter when I saw a couple of photos from a house for sale at 702 Fremont Avenue, South Pasadena, California. The poster commented about prices being out of control. People are saying the same thing about the price of houses in Key West. So I decided to GOOGLE the house. 

A couple of photos of the house, to wit:

Doesn't look so bad to me.  

Okay, it needs some roof and drywall work done.

So it needs a lot of work. Offered for sale at $1,395,000. 

I searched the Key West MLS for active single family houses priced $1,390,000 to $1,400,000 and found only one house. It is located at 3122 Riviera Canal Drive, Key West. It is offered for sale at $1,395,000. Same cost, different coasts. You decide.

The backyard and pool open out to the Riviera Canal which runs about a mile or so until it flows into the Cow Key Channel and then out to the Atlantic Ocean.

Opposing view from the canal looking toward the house. That tree in the foreground is a frangipani or plumeria tree. They have fragrant beautiful flowers which are used in making perfume. 

Maybe the Twitter guy who complained about the South Pasadena housing prices is correct. Then again Key West has its own very expensive fixer uppers. But at the $1,395,000 price point, Key West beats South Pasadena to pieces. 

733 Poorhouse Lane, Key West

JUST LISTED by me, 733 Poorhouse Lane, Key West. A few boards from the original house remain, but in actuality this is a brand new house from pier to rooftop, from front porch to pool cottage at the rear. Everything in between and side to side is new and perfect.

The owner working with architect Matthew Stratton created a contemporary masterpiece replacing all but a few of the old bones of the original house. Everything is essentially brand new but the front is still "technically" a renovation. The entry hall two Dade County Pine drama walls to remind guests this is an old house which are counter-pointed by new white-washed wood and solid maple flooring.  

I am mindful of the tragic losses caused by Covid 19. The supply chain of home appliances has made it impossible to install the appliances at this time, but they are on the way. The appliances and all furniture and furnishings are included in the sales price.

The main house has two bedrooms, two baths, large open concept living area with cathedral ceilings. The master bedroom is located at the front of the house. It has a coved ceiling with up lighting. The guest bedroom is located at the rear of the main house and has a cathedral ceiling and view of the pool. Guests won't leave. Not with a view like that.

The pool side guest cottage has a cathedral ceiling as well. And an intoxicating view of the pool. It would equally work well as a home office for those who are working at home these days. But that view might cause your mind to drift. The pool is 18 feet long with a wall where water trickles down making little splashes which compete with the birds singing. I am not making this up. You gotta check this out.

733 Poorhouse Lane, Key West is offered for sale at $2,200,000. Please call Gary Thomas, 305-766-2642, to schedule a private showing. I am a full time Realtor at Preferred Properties Key West.

 

Key West Real Estate Throwback Thursday - No. 16

from August 16, 2015

Real Estate Photography for DUMMIES - A True Story

 This is a true story. The names have been changed to protect the innocent.

I get most of my business from people who read my little blog about Key West real estate. Most of my customers are buyers, but I also get a few listings throughout the year. About a year ago a buyer called me to ask about a new listing she had seen in our online mls. The Key West Association of Realtors mls website is open for all to see. You don't need to send an email to an agent to get details on anything.  But this buyer asked my opinion on this particular new listing and the neighborhood. I knew the neighborhood but knew nothing of the house. So I called the listing agent and set up a time so that I could preview the house and take more photos for my buyer and also be able to answer more of my buyer's questions.

I showed up the next day about ten minutes early.  The listing agent, who I will call Betty Lou, was standing in the street talking to four or five people about the house.  I presumed they were other potential buyers because one person had a camera who was taking photos of the area. I got out my camera and started snapping photos of the house from various angles. I moved to the front porch and took photos of the porch and the view from the porch looking across the street.  I framed the palm trees for best effect.

The other buyers were walking on the east side of the house toward the back. I walked toward Betty Lou who said "Hi, Gary. Go on inside and take your photos. The house is open." "It's open?", I asked. "Yes, go on inside" Betty Lou responded. So I walked back to the front door and walked inside. Betty Lou walked down the side of the house toward the rear. The house was very nicely furnished, but it had a horrible odor from years of cigarette smoke. I immediately liked the house despite the odor knowing that it could be fixed with ease.

I walked over to turn on the lamp next to the sofa. Then I walked toward the dining room to turn on the overhead light fixture when a female voice said "I live here!"  Betty Lou had told me the owners were in town in our phone discussion the day before. She said the owners were supposed to leave by the time I arrived to take photos. I assumed Betty Lou got the timing incorrect and then wondered why she would send me inside when the owner was still there.

I touched the dining room light switch and turned on the light anyway. "I live here!" the female voice said again.  I responded "I'm sorry. Betty Lou is outside. She said to go inside to take photos."  The voice now had a body, the body of a smallish older woman who had emerged from the bedroom as she walked into the living area where she repeated "I live here!".  I repeated myself saying that Betty Lou had sent me inside to take photos. I said "She is showing other buyers the back of the house". The lady said "Betty Lou is selling the house next door!"  My complexion must have turned beet red. I felt like such a dummy. I reached over to turn off the dining room light and then the light by the sofa.  The lady stood her ground. She was not angry. "Miffed" would best describe her countenance.

I headed to the front door to make my exit. I said "Thank God you did not have a gun!" (You know in Florida we have that 'stand your ground' law that gives people the right to kill people in their homes if they feel threatened.)  The lady emphatically stated "My husband does!" whereupon I felt it best to get out of the house - quickly.

I exited and went to find Betty Lou who I told my little story. I was perplexed as to why she would tell me to go inside having seen me taking photos of the house, especially as I had initially walked toward her from the front porch of the wrong house. At first Betty Lou had a shocked expression on her face. She brought her right hand to cover her mouth and then she let out a chuckle. I thought it was funny too, but not that funny because I could have got my ass shot off.

Help Protect Our Hippie Grandparents

I got my real estate license and started to sell houses in Key West in 1996. Most of the people I worked with were my contemporaries - they were foremost baby boomers and several came with a dash of hippie. The closet I ever got to being a hippie was a pair of bell bottom jeans, hair a bit over my ears, and a mustache. 

My customers grew up in the fifties and sixties. Some of my buyers did well for themselves. Some did exceptionally well. And it wasn't just my buyers, but the slew of people who came to Key West during the past quarter century to be apart of this place that is not like up north in America. In the beginning there still were Conch Cruisers, dilapidated houses, and bars where you could buy a Miller Lite for a buck. Those were the days my friend.

A strange thing happened this past Sunday at an open house I was holding. This guy with white hair started asking a lot of questions about the house, the town, the laws, and so on. That happens all the time. And then he asked how old I was. I thought that odd. Nobody had asked me my age in years and certainly not in the context of selling houses. I told him and he said something like "We're almost there". Then he confessed he was a commercial real estate broker up north - in one of those really big cities on the east coast. I think he said he'd been in the business over fifty years. He and his wife have been coming to Key West for years and years and are finally starting to look at buying a place here - them and everybody else. Good luck on that. Seriously, there are so few choices left.

The past year has caused a lot of us to accept our mortality. Not the kids - they will live forever. But the hippies and the never-were-hippies can see what awaits them. Many have decided the prefer Key West to the big cold cities up north with millions of people. The End!

 

 

 

1215 Grinnell Street, Key West - Developer Home Now Available

Just Listed by Preferred Properties Key West, that is where I work, but this is not my listing:                   1215 Grinnell Street. This stand alone home is located at the center rear of the Grinnell Gardens Compound created in 1990. This home was retained and lived in by the developer who created this unique community of three stand alone houses built on postage stamp lot and two side-side town homes that replicate Grand Conch Revival architecture found throughout Old Town. The compound has a secured front entrance and mailbox station. The focal point upon entering the compound is the shared community pool with large open sunning and seating area.

The focal point is the pool of the compound is the sunny pool and tropical setting. 1215 Grinnell Street is tucked behind the pool for privacy. 

I have written about homes in this compound for over a decade. Yes my blog is getting old but I have photos that go way back and show how the houses and grounds have fared over the years including two photos that show 1215 Grinnell with more detail than the current listing photos - voila!

2011

 

2016

Two of the free standing homes have private pools. All share the community pool pictured above. I know a lot of potential buyers want a place of their very own and have never thought of living in a compound. I "get" the resistance argument. But there is also a separate universe of potential buyers who appreciate having full time neighbors who will keep on the place when the owners are not in town. I recently sold the unit pictured above. The owner is one of the full time residents. Association fees are only $250 per month and include cable,  pool and grounds maintenance.

This stand alone house is 1,535 Square Feet. The developer retained this unit for himself. Now it has three bedrooms, three baths, and would benefit from a renovation. I'll share just two pics. 

I think most American adults would agree that turning 30 years old was frightful. Then they got on with living their life. The kitchen and baths are from another era. The tiles and floors are varied. The wall colors go from white to vibrant. Styles change. Houses get older. People grow wiser. Mostly.

Grinnell Gardens is located four blocks east of Duval Street and a short stroll or bike ride to Higgs Beach or South Beach.

CLICK HERE to view the Key West MLS database and listing photos for 1215 Grinnell Street, Key West which is offered for sale at $949,000. Then please call me, Gary Thomas, 305-766-2642, to schedule a private showing to to discuss this property. I am a buyers agent and a full time Realtor at Preferred Properties Key West. This should sell very fast. Don't wait.You will regret it. Even if you have to paint and replace a few things, this a buying opportunity.  

Taco Tuesday - The Value of Location

Last week while photographing some ongoing construction for my blog I suddenly got a whiff of garlic. It wasn't totally am unpleasant smell but not the kind of smell I normally encounter in Old Town. A few days earlier I picked up my completed federal income tax returns from my accountant. His office is  located on North Roosevelt Blvd in one of our shopping netters. As soon as I opened the door I got a whiff of the Subway Sandwich shop located next door. The smell made me think of food. It was both pleasant ad distracting. I commented on it to my CPA. He said you get used to it. Why should anyone have to get used to the smell of somebody else's business?

A few years ago a woman who reads my blog called me to talk about looking for a new house. I knew where she lived. I blogged her house before she bought it. Her house is located about 75 feet from the back door of a Key West eatery. The woman told me she gets awakened every morning as the cleaning crew scrubs pans out side the back door of the restauand. She said she hears the workers speaking, the pot and pans clonking, and chickens screeching - EVERY DAY. When the cooks arrive she starts to smell the aroma of garlic and onions as it hovers over the nearby homes. EVERY DAY.

A few days into the new year I got a phone call from a man who GOGGLED an address and up popped a blog I wrote. He called me to discuss the place. I pointed out the pros and cons of the place. I had shown it a few weeks earlier so I had a fairly clear recall of the place. I liked the house and felt the price was reasonable but pointed out that it was located perilously close to a restaurant and warned of the smells, noise, and foot traffic he might expect. He said he liked the place. I told him a lot of people buy places they like. But there comes a time to sell and selling difficult locations is, well, difficult. 

I am not saying buying a house located near a restaurant is bad. It is, but I am not saying that. I believe in the value of location as a key reason to buy a place. Or to not buy a place. Taco Tuesday, Wednesday, Thursday, Friday, Saturday, Sunday, Monday, all day, all night, everyday without pause can get annoying. It may prevent an owner or his or her heirs from selling what may be their biggest investment of their lives. Think before you buy. Consider who will buy what you "settled" to buy.

Gary Thomas, Realtor, Preferred Properties Key West, 520 Southard Street, Key West, Fl 33040