I continue to negotiate this 90 unit apartment deal in Richmond, VA.
With every round, I drag my feet to get back to the broker, which is unlike me. I like to be as responsive as possible to keep the momentum going. But for some reason, not with this deal.
I’ve started reflecting on why that might be. I remember a podcast I did with Joe Fairless (a frequent Bigger Pockets forum contributor) and he mentioned that he felt it was important to be enthusiastic about your deals. I haven’t really thought much about this, but the more I do, the more important I think it is.
Here are 3 reasons why it’s important that you LOVE your deal.
1. Enthusiasm Sends Positive Vibes into the Universe
I recall some of my house flips, in particular the ones with endless issues and poor profitability. As I think back, I really never loved the deal to begin with.
Something bothered me about the house. Maybe it was on too busy of a street, it was slightly smaller than the comps, or it had a floor plan I wasn’t thrilled about. Every time I would visit the property or even think about it, I cringed. I got this negative feeling. Other houses I absolutely loved and I was certain things would go smoothly and we would sell for top dollar within 30 days of listing – and we did most of the time.
There is something about the vibes you send into the universe. I don’t have a scientific study to prove it, but I’ve experienced this over and over again. If you’re enthusiastic about a deal, you send out positive energy and many times (but not always!) you’re rewarded with a more positive outcome.
2. Enthusiasm is Contagious
If you’re using other people’s money as many of us do to fund house flips or apartment building deals, then you need to convince potential investors to invest with you.
If you can’t talk passionately about a deal you won’t sound very convincing, and people are less likely to invest with you. On the other hand, if you’re enthusiastic about a deal, the more enthusiastic others will be in joining you.
3. Enthusiasm Keeps You Going and Helps Overcome Challenges
It occurred to me that I might be dragging my feet with this Richmond deal because I’m not really enthusiastic about the deal.
Every time I think about countering the seller’s last counter, I shudder, and put it off another day. The main issue is that I can’t really add any value to the deal, and I’m an entrepreneur at heart and I feel compelled to create something of value for me and my investors. I love the challenge, and it’s fun for me. But this deal doesn’t give me that opportunity.
If there’s one thing I learned over the years: you need to do whatever you’re most passionate about. And that includes the deals you’re doing. Only then will you keep going with whatever you’re doing and will you persist despite challenges.
Based on a decade of real estate investing as well as other business ventures, I think one major new underwriting requirement for me before I’ll do a deal is “how much do I love this deal?”.
If the answer isn’t “I LOVE THIS DEAL” (or at least “I really like it”) then perhaps I should re-evaluate the deal. This doesn’t mean that every deal I do should be a home run, I’m not saying that, but I am saying that you should be enthusiastic about the deal so that you send positive vibes into the universe, get others (like your investors) excited about joining you, and stay motivated each day you own the investment.
How do you get excited about deals?
Be sure to leave your comments below!