The 3 easily avoided mistakes that will make
you an unsuccessful liar.
Through my years in this sport called real estate investing I’ve met a lot of different types of people. Good agents, bad agents, good mortgage brokers, bad mortgage brokers, good contractors, bad contractors, expensive lawyers…well they’re just plain expensive. Of all the folks mentioned above, none of them are as good at lying as real estate investors. Surprised that I claim to be a real estate investor, proudly in fact, and I’m calling myself a liar?
Please let me explain. When a prospective purchaser of a property looks at the deal there are a lot of things that aren’t taken into account. Here’s where the lying comes in. We seem to get what’s called “Dealitis”. The clinical definition of “Dealitis” is; I’m willing to do a deal, even i it doesn’t make complete sense and may not cash flow when taking everything into consideration just to do the deal and shut up the naysayers.
Now, I’m all about shutting up the naysayers, but it makes a lot more sense to do it with a successful transaction so that you can do it over and over again. Don’t get me wrong, you shouldn’t live to prove others wrong, but in our business there are a lot of sideline reporters who would never step up to the plate.
Here are a few possible hiccups that can turn a super deal into a rotten barrel of tomatoes;
1. Don’t fight too hard to get the house if it means going over your maximum purchase price. It doesn’t matter if you are the best painter or have the top agent in the area representing your listing. If you buy too high you won’t be very successful. This is a classic case of “Dealitis”. (Don’t Be a Liar)
2. Buy what others want. (Don’t Be a Liar) There are reasons why most people don’t like quad level houses, prefer basements & garages, and they love brick ranches. I won’t go through all of them but for crying out loud if that’s what they want, GIVE IT TO THEM. It’ obviously possible to make money with all types of properties but why not offer your finished product to the largest hungry audience?
3. Begin with the end in mind. Know the minute you look at a property if it’s a hold or flip. Take your time when you inspect it and decide how much work it needs. (Don’t Be a Liar) Be honest with yourself, and if you don’t know the exact numbers, call out a bunch of professionals to give you quotes. Hey, times are tough and most contractors are pretty hungry right now. It’s easy to get a bunch of quotes. Don’t be afraid to pick up the phone and call.
Hopefully you didn’t get the wrong idea from my whole We Are Liars subject. All I want you to do is be honest with yourself. It will help you ensure success in real estate, business, and life. Be patient if you’re clamoring to do a deal. The right one will come along if you’re working hard and have the right people on your team. Make sure you get to all of The REIA of Macomb events, most sucessful real estate investors dont miss them. I know I don’t!
REIA of Macomb Founder