[Modern Family] Ch: 22 & 23 [Phil Gets His Deal] (Patreon)

AN: Phew! Took so much time lol. I had to search the internet for California property rules and all those details. Anyway, it's a wholesome chapter and I was able to fit the entire deal in it. A little over 4k words. As usual, think of this as a single chapter. For WN, it'll be 2 chs.

--

[Next Day] [9:00 AM]

[Near University of California, Riverside]

Jason slowed the Nissan as he turned off University Avenue and followed the navigation toward the property.

He had spent part of the previous evening researching the surrounding area, though seeing it in person gave him a much better impression than photographs and maps ever could.

The University of California, Riverside was only a few minutes away. Students moved along the sidewalks with backpacks, bicycles passed through the intersections, and several bus stops connected the neighborhood directly with the campus.

More importantly, almost everything a tenant might need was nearby.

A grocery store sat across the main road beside a pharmacy. A small shopping center contained restaurants, a coffee shop, convenience store, dry cleaner, and several other businesses. A gym was located a few blocks farther down, while fast-food restaurants and smaller local shops were scattered throughout the surrounding streets.

Jason slowly nodded while driving.

'University nearby, groceries, restaurants, public transportation, and everything within walking distance. That's already a strong start.'

His navigation directed him onto a residential street, and the fourplex appeared ahead.

Jason's eyebrows rose slightly.

The listing photographs had made the property look dull.

In person, it looked surprisingly good.

The two-story building had modern stucco walls painted in warm beige with darker trim around the windows and balconies. A paved driveway ran along one side toward covered parking behind the building, while a low metal fence separated the small landscaped courtyard from the sidewalk.

Each upper-floor unit had a modest private balcony.

The lower units had small patios.

The landscaping needed attention, and one section of the exterior paint had started fading, though the entire property looked considerably newer than Jason had expected.

He pulled over near the curb and parked.

Phil was already standing outside the gate with a leather folder tucked under one arm.

Jason stepped out of the Nissan and locked the car.

He had dressed casually, though casual had become a somewhat expensive concept since inheriting Jason Miller's wardrobe. Dark designer jeans, a fitted polo shirt, limited-edition Nike shoes, and one of the Rolex watches from his collection completed the outfit.

Phil noticed the watch and the shoes, then the Nissan, and finally Jason, as a friendly smile appeared on his face like a professional realtor.

“Jason!”

Jason walked toward him and extended his hand. “Morning, Mr. Dunphy. Thanks for coming out.”

“Are you kidding?” Phil replied as he gestured toward the property. “You called me about buying real estate with cash during one of the worst housing markets we've seen in decades. That's basically realtor Christmas, except nobody gives me cookies and people keep losing their houses.”

Phil's smile disappeared for half a second.

“That sounded much darker than it did inside my head.”

Jason chuckled. “A little.” He then looked toward the building. “It looks much better than the listing pictures.”

Phil's realtor smile became even brighter. “I said exactly the same thing. Whoever photographed this property managed to make a two-year-old building look like it survived three divorces and a minor earthquake. The website never updated the details.”

Jason glanced toward him. “Two years old?”

Phil opened his folder while nodding.

“Construction finished in late 2007. Four separate units, covered parking, individual electrical and gas meters, relatively modern plumbing, modern electrical systems, and everything was built before the owner's finances decided to jump off a cliff.”

Jason looked toward the property again.

“So why is he selling it for two hundred fourteen thousand?”

Phil's expression changed slightly.

That was apparently the question he had been waiting for.

He unlocked the front gate and gestured for Jason to follow.

“The owner is named Richard Coleman. He owns a small residential construction company based here in Riverside. During the housing boom, business was very good. New houses, renovations, small apartment projects, and investors throwing money around like property values would never drop.”

Jason followed him into the courtyard.

Phil continued while opening the folder. “Mr. Coleman built this fourplex as a long-term investment. His original plan was simple. Finish construction, hold the property, refinance after values increased, use the equity toward another development, and continue expanding.”

Jason already understood where this story was heading.

“Then the housing market collapsed.”

Phil pointed toward him approvingly. “Exactly. Suddenly property values dropped, construction work dried up, banks tightened lending, and two larger projects his company had started became financial anchors. Also, he patched things up inside the building after the tenants left, hoping the low repair cost would bring in some buyers."

'Looks like I'm gonna save some money. There's no headache of prior tenants, and with small repairs already done, I can save some cash there,' Jason thought. 'But there's still some things left to repair. Atleast I won't have to spend another 20 grand.'

They stopped near the center of the courtyard.

Phil flipped through several pages.

“He's still operating, though barely. His company owes suppliers, equipment payments are coming due, and one unfinished development is consuming cash every month. His bank also refused the refinancing package he originally planned to use on this building.”

Jason looked toward the upper balconies.

“And now he needs liquidity.”

“Very badly,” Phil replied. “This property is one of the few assets he owns that he can sell quickly without shutting down his construction company. He needs cash to settle several supplier accounts, finish the project that's already halfway completed, and keep his business alive until construction demand improves.”

Jason considered that explanation.

It made sense.

A profitable asset could still become expendable if the owner desperately needed money elsewhere. 

Phil tapped the asking price printed inside the folder.

“He originally listed this building much higher. No serious buyers came forward. Then he reduced the price. Still nothing. Another reduction followed, and now we're sitting at two hundred fourteen thousand dollars.”

“Because nobody can get financing,” Jason said.

“That is a huge part of the problem,” Phil replied. “Investors are scared, lenders are nervous, unemployment keeps climbing, and everyone who still has money is convinced prices might drop another twenty percent.”

Phil stopped walking and looked directly at Jason.

“Then you appear.”

Jason raised an eyebrow.

Phil's smile widened.

“A cash buyer.”

Jason chuckled.

Phil held both hands slightly apart as if presenting something miraculous.

“There's no lender approval, no mortgage contingency, and we don't have to wait three weeks for somebody in an office to decide whether your financial existence meets paragraph seventeen, subsection C.”

He lowered his voice almost reverently.

“You can wire the money into escrow.”

Jason smiled. “You sound excited about that.”

“Mr. Miller, during this recession, a qualified cash buyer is basically a unicorn carrying a briefcase full of closing documents.”

Jason paused.

Phil paused too.

Something about hearing Jason addressed as Mr. Miller apparently reminded him that the twenty-something standing in front of him wasn't merely a client.

Phil's professional smile flickered for half a second as his eyes settled on Jason.

Jason noticed immediately. “Something wrong, Mr. Dunphy?”

Phil drew a breath, glanced toward the fourplex, and adjusted the folder beneath his arm. “Nope. Everything's completely fine. We're standing in front of a promising investment property, you've got cash available, and I'm your realtor. Those are the only relevant facts between nine and whenever we finish here.”

'Oh boy, this is kinda awkward,' Jason's mouth twitched. “That's very... specific.”

“I believe in boundaries,” Phil said as he unlocked the gate leading toward the first unit. “Strong, healthy, professionally convenient boundaries.”

Jason followed him through the gate. “Professionally convenient?”

Phil paused, realized what he'd said, and quickly continued walking. “Let's look at the property.”

Jason shook his head as Phil increased his pace toward the first apartment.

For the moment, neither of them mentioned Alex or Haley.

Jason was perfectly happy with that arrangement.

Phil was clearly fighting for his life to maintain it.

...

<Phil's Commentary>

Phil sat alone inside his SUV.

“Jason likes my daughters.”

He paused.

“Both daughters.”

Phil looked toward the camera.

“And both daughters like Jason.”

He rubbed his palms against his knees.

“People think having daughters prepares you for dating. It doesn't. You spend years worrying that some boy is eventually going to show up, and then two daughters decide they like the same boy.”

Phil frowned thoughtfully.

“Nobody prepares you for consolidation.”

He shifted in his seat.

“Alex kissed him. Haley went on a long drive with him. Claire says they're competing, which is concerning because Alex fights with facts and Haley fights with psychological warfare.”

Phil nodded gravely.

“I've seen both.”

His expression suddenly brightened.

“Then Jason tells me he wants to buy a fourplex.”

Phil smiled.

“With cash.”

He leaned toward the camera.

“Cash buyers don't need mortgage approval. They don't need financing contingencies. They don't disappear because their lender discovered they bought a jet ski three years ago.”

Phil straightened his shirt.

“So today, I'm separating my responsibilities.”

He held up his left hand.

“This is Dad Phil.”

Then he raised his right hand.

“This is Realtor Phil.”

Phil looked between them.

“Dad Phil wants answers.”

He lowered his left hand.

“Realtor Phil wants signatures.”

Phil slowly brought both hands closer together, then immediately pulled them apart again.

“They don't touch.”

His smile appeared.

“Especially today, because this side is paying cash.”

Phil looked toward the camera.

“I haven't closed anything in weeks... Actually, one month, two weeks.”

A pause followed as his smile became more determined.

“So unless Jason walks into that building and announces that he collects human teeth, Realtor Phil is staying focused.”

<Phil's Commentary End>

...

Phil unlocked the first unit and pushed the door open before stepping aside.

“After you, Mr. Miller.”

Jason entered and immediately looked around.

The apartment was in better condition than the listing photographs suggested.

The living room offered a decent amount of space, with large windows overlooking the courtyard and enough room for a couch, television setup, and small dining area. Light-colored walls made the interior feel brighter, while tile covered the kitchen and bathroom sections.

Jason walked toward the kitchen.

Wooden cabinets lined both walls, with laminate counters, a gas stove, dishwasher, and space for a full-sized refrigerator.

He opened several cabinet doors and tested the hinges.

Everything felt solid.

Phil stepped beside the counter and opened his folder. “The whole building is vacant now. Three of the units had tenants until recently, but they moved out over the past few months. The last tenant left just last week.”

'Freakin' websites. They never update the latest details.' Jason glanced toward him. “So nobody lives in any of them now?”

“Not anymore,” Phil confirmed. “Mr. Coleman had already decided to sell, so he stopped looking for replacement tenants as the units became vacant. That means you won't inherit any active leases, security deposits, old agreements, or somebody who thinks rent becomes optional just because the landlord changed.”

Jason nodded. “That makes things easier.”

“It gives you a clean start,” Phil agreed as they moved toward the hallway. “You choose the rents, screening standards, lease terms, deposits, and whether you manage everything yourself or hire somebody.”

Jason entered the first bedroom.

It was modest but comfortable, with a built-in closet and a window facing the side of the building.

“What do places like this rent for around here?”

Phil pulled several pages from the folder. “I've checked comparable rentals within roughly a mile and focused on properties competing for students, graduate students, university employees, and young professionals. For a unit in this condition with parking, you're looking somewhere around eight hundred to nine hundred dollars monthly.”

Jason looked toward him. “Per unit?”

Phil nodded. “Depending on the final condition and what's included in the lease, I'd probably start near eight-fifty and see how the market responds.”

Jason calculated quickly.

“At full occupancy, that's thirty-four hundred a month.”

“Exactly,” Phil replied. “You might push closer to thirty-six hundred eventually, though I'd rather fill the building with good tenants than chase another fifty dollars per unit and watch apartments sit empty.”

Jason nodded approvingly. “That's what I was thinking.”

Phil smiled. “See? We're already finishing each other's rental projections.”

Jason glanced at him.

Phil's smile faded slightly.

“That sounded more intimate than real estate should ever sound.”

Jason laughed as they continued toward the bathroom.

The fixtures were modern, the tile remained clean, and there were no visible stains around the ceiling or walls.

Jason turned on the sink and watched the water for several seconds.

“Pressure seems fine.”

Phil nodded. “From what we can see, everything looks good. We're still bringing in a licensed inspector because I'm qualified to tell you whether buyers like a kitchen. I'm considerably less qualified to tell you whether a pipe hidden behind a wall is damaged or blocked.”

Jason smiled. “Foundation too?”

“Foundation, roof, plumbing, electrical, HVAC, drainage, windows, appliances, pest inspection, and anything else worth checking before two hundred thousand dollars changes hands. I don't want you to make a bad investment just because I was desperate to sell this place.”

“That works for me, Mr. Dunphy.”

They moved through the remaining bedroom before heading upstairs.

The second-floor units followed almost the same floor plan, though both included private balconies overlooking the courtyard and street.

Jason stepped onto one of them and rested his hands against the railing.

From there, he could see part of the nearby commercial area. Students moved along the sidewalks, a bus stopped near the corner, and traffic flowed steadily toward the university.

“This location's really good.”

Phil joined him outside. “That's what makes the price interesting. You're close enough to campus to attract students without putting the building directly beside the busiest streets. Grocery store, restaurants, pharmacy, bus stops, coffee shops, and enough cheap food nearby to keep college students alive indefinitely.”

Jason glanced toward him. “Cheap food is part of your market analysis?”

“College students rank food somewhere between oxygen and Wi-Fi.”

Jason laughed. “Fair point.”

After checking the remaining units, they moved toward the back of the property.

Eight covered parking spaces stood beneath a long metal canopy.

Jason counted them. “Two per unit.”

Phil nodded. “That'll help if you rent to roommates. University parking is already annoying enough without people coming home and fighting over one space.”

Near the parking area stood a small utility room.

Jason opened the door and found plumbing connections, drains, electrical outlets, and enough room for several machines.

Phil looked over his shoulder. “Mr. Coleman planned to turn this into a laundry room. The hookups are already installed, though he never purchased the equipment.”

Jason stepped inside and inspected the space.

“How much would coin-operated machines cost? Any idea?”

“I'd have to check current commercial equipment prices,” Phil replied. “The room itself is ready for them, which saves you from having to build everything from scratch.”

Jason looked around thoughtfully.

Four apartments could easily mean several tenants once roommates became involved. A shared laundry room would make the units more convenient while generating a little extra income.

'Could be useful.'

They continued around the exterior.

The issues Phil had mentioned were easy to spot once Jason knew where to look.

One bedroom window had a crack near the lower corner.

Several cabinet doors needed adjustment.

A section of fencing leaned slightly.

The landscaping had grown uneven from months without regular care.

One air-conditioning unit rattled loudly when Phil switched it on.

The exterior paint remained respectable, though one side received enough direct sunlight that it would probably need attention sooner than the others.

Jason stopped near the courtyard once they finished.

“So we're nowhere near like seven, eight thousand in repairs unless the inspection finds something serious.”

“I agree,” Phil said. “I'd still keep a healthy repair budget because buildings have a magical ability to discover problems shortly after someone buys them.”

Jason smiled. “Sounds comforting.”

“Real estate is like marriage,” Phil replied while closing the folder. “You fall in love with the good parts, then eventually somebody has to pay for manicure and spa every week.”

Phil froze.

Jason slowly looked toward him.

Phil cleared his throat. “Property metaphor. Completely unrelated to anything outside real estate.”

Jason laughed and slipped his hands into his pockets.

The more he looked around, the better the investment seemed.

The university provided a steady population of potential tenants. Shopping, restaurants, transportation, and daily necessities were nearby. The building was barely two years old, the units were vacant, and the recession had forced an owner with unrelated financial problems to sell at a steep discount.

Jason looked toward Phil. “What do you think I should offer, Mr. Dunphy?”

Phil's demeanor changed immediately.

The joking disappeared as he opened his folder and pulled out the pricing analysis.

“The asking price is two hundred fourteen thousand. I wouldn't start there.”

Jason nodded. “What number would you use?”

“One hundred ninety-five thousand.”

Jason raised an eyebrow slightly. “That's a big drop.”

“It is, though you've got leverage,” Phil explained. “Mr. Coleman needs cash, and you've removed the biggest uncertainty sellers are dealing with right now. There's no mortgage approval hanging over the transaction.”

Phil turned the page and pointed toward several comparable sales.

“I'd offer one ninety-five with proof of funds, a short inspection period, clean terms, and the ability to close quickly once title and disclosures check out.”

Jason studied the figures. “Think he'll accept?”

“He might reject the first offer or counter,” Phil replied. “I'd expect him somewhere around two hundred five thousand initially.”

Jason looked toward the building. “And where do you think we'd finish?”

“If I do my job properly, which I always do... around two hundred thousand.”

Jason nodded slowly.

Two hundred thousand for the building.

Inspection and closing costs would add more. Then he would need landscaping, minor repairs, laundry equipment, insurance, and money set aside for unexpected problems. Even after all of that, the total should remain under his original $245,000 property budget.

Jason extended his hand toward Phil. "Alright, let's make a deal."

Phil shook his hand with a smile.

...

By that afternoon, the first offer had been submitted.

Jason started at $195,000. Richard Coleman rejected it and countered at $207,000, arguing that the building was barely two years old, close to the university, and already priced well below what he had originally intended to sell it for.

Phil expected the counter.

He went through recent sales in the area, reminded Coleman’s agent that the property had already gone through multiple price reductions, and pointed out that the building was costing Coleman money every month it remained empty. Besides, given the market, there is a very big chance the price will drop again.

After several calls and another round of numbers, both sides settled at $200,000 before the end of the day.

Jason signed the purchase agreement that evening.

The agreement included an inspection period, title review, seller disclosures, and protection against major undisclosed problems. Phil also made sure any issues found during the inspection could be addressed before Jason finalized the purchase.

Escrow opened the following morning.

Jason provided the required financial documents and deposit while the title company began reviewing the property records. At the same time, Phil arranged for a professional inspection so they wouldn’t waste several days waiting for one step to finish before beginning another.

The inspector arrived on the second day and spent several hours going through the entire property.

The roof, electrical systems, plumbing, balconies, foundation, parking structures, HVAC units, bathrooms, kitchens, drainage, windows, and appliances were all examined.

The results were encouraging.

There were no major structural problems, serious plumbing issues, roof damage, or dangerous electrical defects. Considering the building had only been completed in 2007, it was in good condition.

The problems were relatively minor.

They estimated the cost of the repair work to be between $6,000 and $7,500.

Phil immediately used the inspection report during the next round of negotiations.

Rather than asking Jason to cover the repairs afterward, Phil pushed Coleman to handle the important items before closing and absorb the remaining approved work through seller credits.

Coleman resisted at first.

His financial situation eventually made compromise more attractive than allowing the deal to fall apart.

By the sixth day, they reached an agreement.

The repairs cost Coleman very little because his own construction company and employees handled them at cost. The remaining cosmetic work and part of the transaction expenses would be covered through credits from the seller’s side.

The purchase price remained at $200,000. Jason would still cover the normal buyer-side costs associated with completing the acquisition.

During the same week, the title company completed its search.

An old mechanic’s lien filed by one of the suppliers involved in the fourplex’s construction appeared in the title records. It wasn’t large, though it had to be cleared before ownership could transfer.

Coleman resolved it several days later.

The seller disclosures also came back clean. There were no known flooding problems, structural damage, major insurance claims, zoning violations, or disputes involving ownership.

Jason reviewed everything alongside Phil and approved the transaction to continue.

By the second week, the building had already begun looking better.

The broken window had been replaced. The gate stood properly again, the faulty fans were fixed, the air-conditioning unit ran quietly, and a landscaping crew cleaned the courtyard and restored the neglected plants.

Jason drove past the property one evening and barely recognized the place from the listing photographs.

What had originally looked like a neglected recession-era investment now looked like a modern fourplex waiting for tenants.

On the twelfth day, Jason and Phil returned for the final walkthrough.

They checked each apartment, the parking area, utility room, balconies, repairs, appliances, and common spaces. Everything matched the agreement, and no new problems had appeared since the inspection.

Jason signed the remaining paperwork shortly afterward.

Two days later, escrow confirmed that every requirement had been completed. Jason wired the remaining funds into escrow, and the final documents were submitted for recording.

The following day, the deed was officially recorded, transferring ownership of the fourplex to Jason Miller. Escrow confirmed that the transaction had closed.

From the initial handshake with Phil to the recorded deed, the entire process had taken roughly fifteen days.

Phil met Jason outside the building that afternoon and handed him the keys.

...

<Phil's Commentary>

Phil sat comfortably on the living room couch with one arm stretched across the backrest. A satisfied smile had been stuck on his face since he returned home.

“I finally closed a two-hundred-thousand-dollar deal after six weeks of nothing.”

He paused, letting that sink in properly.

“Two hundred thousand dollars. Four units. Fifteen days. And somehow, I got the seller to handle the important repairs without pushing Jason over the price we agreed on.”

Phil nodded proudly.

“That’s what we in the real estate business call negotiating.”

His smile grew wider.

“And what Gil Thorpe calls cheating whenever somebody does it better than him.”

Phil adjusted himself on the couch as another pleasant thought crossed his mind.

“Gil has been walking around the office for weeks talking about this house he sold for one-thirty-seven. Every morning, it’s the same thing. ‘Hey, Dunphy, sold another one.’ ‘Hey, Dunphy, market’s tough for some people.’ ‘Hey, Dunphy, maybe try selling houses instead of showing them.’”

Phil’s smile disappeared briefly.

“He actually said that last one twice.”

A moment later, the grin returned stronger than before.

“Well, guess who just closed a two-hundred-thousand-dollar fourplex?”

Phil pointed both thumbs toward himself.

“This guy.”

He leaned back with visible satisfaction.

“And the best part is that Jason came to me. Gil didn’t even get a chance to steal the listing, or the client, or somehow appear at the property wearing sunglasses and pretending he was already negotiating.”

Phil shook his head.

“Tomorrow, I’m going into the office, putting the closing report on my desk, and saying absolutely nothing.”

He paused.

“Because mature professionals don’t brag.”

Another beat passed.

“I’m just going to leave it somewhere Gil can accidentally see it.”

Phil’s grin widened.

“Several times.”

He relaxed against the couch, clearly enjoying the victory.

“Daddy’s officially back in the game.”

A thoughtful expression crossed his face.

“And Gil Thorpe can suck it.”

Phil immediately winced.

“Professionally.”

<Phil's commentary End>

...

Jason stood inside the courtyard for several moments, looking between the four empty apartments while turning the key ring slowly between his fingers.

At roughly $850 per unit, full occupancy could bring in about $3,400 every month before expenses. The unused laundry room could become another small source of income once he installed commercial machines, while the university nearby provided a steady supply of potential tenants.

"Okay, time to find some tenants."

....

Next Ch: Haley & Alex: The big talk