You cannot do a web search for real estate investing without running by someone telling you how to “Quit Your …
When we are looking to acquire profitable real estate, it’s important that we take the adequate time necessary to analyze the pros on cons of promising investment properties (yes, even the best ones have down-sides we must be aware of).
But once we have deals that meet our target metrics, it’s time to pull the trigger and start working the business plan. There are a couple things that can happen when you get to this point.
One – You can confidentially take the next step, and progress the deal forward. It’s that simple. That means:
- Get the purchase agreement executed.
- Hire the Inspector
- Pay for the Appraisal
- Close on the deal
- Start your Operation
- Enjoy the passive income
Two – You can continue to try and find additional reasons why it will not work. You will reach out to other people around you (who aren’t wealthy real estate investors) and pitch them the idea, hoping their feedback will solidify your plan. You do this because you just aren’t quite at that point where you can confidentially move forward. They in turn will give you feedback as to how it could go wrong, or they may ask you questions that you cant answer yet, which will make you feel not ready to go ahead.
What separates the Movers and Shakers from the people who don’t execute on a consistent basis is something called analysis paralysis.
I’m sure you’ve heard this before, and have thought, “No, that’s not me.” But the truth is, it probably has been at one point or another (it’s happened to me as well). But we all reach a certain point where we must stop hoping, dreaming, wishing, analyzing, dissecting, etc., and simply trust in the “Macro” business plan we are operating on and pull the trigger on a consistent basis.
Keep in mind, you have the entire inspection period (roughly 10 days in residential, and 60 days in commercial) to do your further due diligence on the property. Don’t let good deals slip by because of an inability to “pull the trigger”. When a shark smells blood, it attacks, and you should be very aggressive when a deal meets your metrics. And if you end up finding something wrong with the property that cannot be negotiated or fixed to your liking, you simply walk away. You do have some “sunk costs” for things like the inspection and an appraisal, but those types of expenses come with the business, and you need to have the mindset that they simply bring you one step closer to finding the right deal. And on a side note, those expense will help offset some other earnings as they are 100% expensed against your income.
In conclusion, keep it simple. Come up with metrics so that you know when a deal is good or bad. And when it meets your metrics, or in other words when there is blood in the water, attack like a shark and get that deal locked up under contact. That is when the fun really begins.
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