A couple of years ago I read the book The Art of the Deal by Donald Trump. I wrote down a few quotes that I liked. I am going to share some of those quotes with you. Sometimes with, other times without, any comment. I hope it ads some value.
My other favorite lesson from Donald Trump that I use, is the following (and I cannot find the reference in the book, but believe me, I learnt from Trump): He likes to keep his options open, so whenever he signs a deal, he always makes it subject to approval by a third party. It could be subject to approval by my partner, my wife, my lawyer, my accountant. And then he says he does not have a partner, but he could go home, sit on the couch and discuss it with his dog. And his dog might indicate that it does not like the deal. And who is to say that his dog is not his partner. (Or that his dog does not know more about property than all the other so called experts:) )
I like to have options. Freedom and independence, to me, go hand in hand with choices. I hate the feeling when I don’t have options. I hate it when I am pressured and forced in a direction. It makes the rebel (anarchist?) rise in me. So I can fully relate with Trump and his need for options.
Sometimes an opportunity arises and you have to act quickly. But you also need just that little bit more time to confirm all the facts and figures. You can add a condition in the offer to purchase that the offer is subject to an acceptable due diligence within 48 hours (that’s gives you 48 hours to complete the Buyer’s Checklist which you can download under the download tabs). If the seller will accept this, depends on his situation and experience, because it is quite obviously a way to reduce the offer to purchase to a 48 hour option at no cost.
But if you make the offer to purchase subject to approval by your accountant or financial advisor within 48 hours, it has a different ring to it. At least, I think it has. At least you are supposedly discussing the deal with another informed person (says who?). And this is the clause I normally use.
Normally an offer to purchase is subject to the granting of a 100% bond. And you are contractually bound to do everything possible to have a successful bond application. The interesting thing is, this clause never specifies a rate. So I have done my calculations on an interest rate of 12.5%, but the bank grants a bond at 14%, which makes the deal impossible for me. But I have to go ahead with the purchase. It is not something that I have ever done, but it is something that every buyer can do, to specify the rate at which he is prepared to carry on with the deal or not.
Now I am of to Bloemfontein for a graduation ceremony. Chat again on Monday. And if you have not done so yet, download the checklist and I would like to hear any suggestions.