7 apartments, a villa in Pantelimon and a gypsy… bodybuilder

Part 1

• to read part 2, click here
• to read part 3, click here

"Let us invest in the center of Bucharest"
The taxi driver left me exactly at the right place. I stepped down and walked in the building's garden. Before to enter inside, I raised my head and admired the quality of construction, even if I was looking at the back of the buildings. 5 office buildings, one next to the other, with their facade on one of the most important boulevards of Athens. I walked in and soon the elevator (covered by expensive marble) lifted me at the right floor. I entered in the office where I was expected. Following the advices of my client's personal assistant, I walked for 10 meters (looking at tens of people focused on their pc screens) then opened the glass door and sat on a chair, in the conference room.

Another 2 gentlemen followed and finally my client. Tall, chubby and very intelligent, he started teasing all of us. After a long discussion for "everything", we entered into Real Estate as well. "Gents, this guy is not so bad after all. I thought he was a big crook, but he is just a small one, so we can do business with him" (he was usually describing me with even worse words, when other people knew me as well, so this was fine). He had already tested me in several transactions or potential investments. His friends wanted to invest in Romania as well and I was happy to be their consultant. So, in half an hour we agreed on the details of the project: "Good, now all is clear. Let us invest in the center of Bucharest".

Reality bites…
Reality had proved to be much rougher than this lovely sterilized environment, where everything was in order, under control. The amount for investment was about 500.000 Euro, "not too much". I was struggling to find a decent property to invest in, avoiding the endless number of expensive or bad offers. Owners were changing prices every single day or week, the majority of brokers were unfortunately "not good and serious"… I had invested more than 4 months searching for an appropriate property to invest in, but after over 100 lands checked, I still couldn't find the right one.

The "right investment"
"Are you Mister Greek?" the voice on the phone was talking English like I was talking Romanian… "Yes, how may I help you?" "No, no, I help you, I help you. Land in Bucharest, center". In three hours the gentleman, a Romanian Real estate broker, was sitting in front of me, at my office. About 1.80 tall, with an impressive belly ("sex, women and alcohol" he said while pointing his finger on it), sweating hands and foxy eyes. He had heard about me by a friend of his, a collaborator of mine, with whom we had just concluded a transaction for commercial space. The land was located almost at the center of the city, close to one of the landmarks. Its price was 1.000 Euro / sq.m. and the deal should be quick. We finished our discussion and drove directly to the property. "This is the right investment for you, mister Greek"… told me "foxy eyes"… "But it is not for me, it is for a client". "Yes, yes, for you". (Why to insist? He had decided for me, so why to upset him?)

Checking and negotiating the property…
I returned to the land 3 days later. Meanwhile I had informed the big guy from Greece, who was really fast and came quite soon. So, a chilly morning of March we stepped down our car and entered in the property. It was second from the corner. Good opening, interesting shape, sustainable urbanistic parameters (with potential to upgrade). Next to it, exactly on the corner, there was a short building with ground floor + two floors, quite ugly. The area had 0 properties available at this price and location, so we decided to move on.

"Foxy eyes" did not want to let us meet with the owner, he was insisting that the price was not negotiable and wanted us to accept it… "you negotiate with me" he insisted. But the owner wanted to sell at "0" time and probably there was noone else available for such a deal. Surprisingly he "accepted" to do his work and "allowed" us to meet with the guy, a very tall gentleman with whom we agreed at 20 minutes time. Final price: 840 Euro / sq.m., something which really frustrated "Foxy eyes". He tried to destroy the deal, "because he didn't want to have a transaction for such a property and him to receive just commissions" but he did not succeed. Then he wanted my commission as well, because "he never worked for such a small amount of money". He ended up extremely upset, "your enemy forever" as he warned me. "I never worked just for the commission".

• The owner informed his neighbors that he sold the land "for 1.250 Euro / sq.m. Starting with the following morning, the prices rose to 1.500 – 2.500, with some owners being ready to swear to God that "they know for a transaction at a price level of 1.750 Euro / sq.m." = we were already rich in words and papers…
• Today "Foxy eyes" is a taxi driver, after a not very successful career in Real Estate "tricks" during 2008 – 2009)

"Mission: Buy the apartments of the corner building, in order to obtain the land as well"
The doorman of Marriott hotel smiled to me as I was entering in the lobby. My client was sitting on a sofa, in the café on the right as you look at the reception. He raised his hand so as to be spotted by me, but it was not necessary. He was reading an printed email so I headed slowly to him. I looked around the tables. 7 in 10 discussions were about Real Estate. Maps everywhere, people explaining locations and properties… Also the "necessary" table with couple of "lovely ladies" looking around, trying to pick up their clients (I understand that this was a popular "fishing" technique at that time).

"Ilia, it was a good deal. Ofcourse we don't know what the future will bring us, but it looks good. Now we have to optimize our profits, moving in two directions simultaneously:

• We have to find the owners of the apartments in the corner and try to buy them, in order to purchase the land as well.
• We should find an architect in order to apply and obtain a new PUZ, increasing the urbanistic parameters and the added value of the property"

A new quest was about to begin…

Tomorrow:

• A villa in Pantelimon for an ugly two rooms apartment in the center
• "I am strong, look at my muscles, I should be paid double than the old man"