How do you know the “right time” to back away from a deal? Real estate investors are often emotionally caught-up in a certain deal; making it impossible for them to walk away. This happens even when "away" is the best direction to take. If you can’t say ‘no’ to deals, it could cost you in the long-term big time. On the flip-side, it’s equally true that investors have been known to ignore deals that they should NOT let slip by them. Sadly, missing out on great real estate deals has a lot to do with fear, but if you can understand what to avoid in your quest to land the best deals, and what NOT to do, you will minimize your fears and maximize your potential and your profits.
Focusing On A Pipeline That’s Too Small
Could the reason you are not able to step away from deals that are sub par is because you have a small pipeline of dealflow? When your pipeline is too small, the outcome is that you are grasping at breadcrumbs; the leftover scraps of what once could be considered a great deal. You’re too eager to land a deal— any deal. If your pipeline is too small, take time to push out more marketing. Create more of a presence in your business and brand to bring in more of deals to look at. It’s the people who are scared of having no possible options that are afraid to walk away. Don’t be one of them.
Throwing Away Your Contacts
I can tell you now that the power lies in the follow-up. If you have an off-market property lead, but the individual isn’t at the place where they are ready to sell, do not discard their info or forget it. You must remember that, although they are not ready to sell today, who knows what will happen tomorrow or six-months from now. Do not sit back waiting for opportunities to float in front of you. It’s your task to actively seek them.
I have had sellers tell me they had no interest in accepting my offer— now or EVER. I took that as a first encounter, would let a few weeks pass-by, and re-connect with that individual. At that point, the seller often accepted my low-offer due to a change in motivation or various other reasons. By using a detailed content management system, you will keep records organized. If you keep good notes, you will be able to use these when you follow up with leads.
Do Not Skew The Math To Work Your Favor
There are times that it can be best to remain conservative when looking over numbers for your deals, but do NOT adjust your numbers so that a deal will work. This will ultimately lead to trouble in the future. I don’t care how much you really love a property— I mean REALLY love it! Overpaying for a property can cause significant harm to your business as well as your cashflow. Refer back to “Focusing on a pipeline that is too small,” as this point is often influenced by that.
Do Not Throw In The Towel Before You Jump In The Pool
If you really want to make waves in the sea of investor success, it is absolutely necessary that you learn the art and skill of saying, “Yes.” How many investors have you witnessed taking an optimistic— as opposed to a negative approach— to their potential and future? These types of individuals live by the foundational belief system that the word, “Yes” contains more options, increased possibility, and additional adventures; more so than the word ‘no’ has the power to do.
Subsequently, the next time that you are given a chance to succeed, you need to stay positive. This is essential to your success. At least entertain options until you know it’s a definitive “No.” Successful people live by risk and timely-taken opportunities. Be ready to spread your wings and soar!