Lesson That Took Me Years to Appreciate

[Drago Stanimirovic]

When I first got into this business, I thought successful deals had one thing in common: good numbers.

But... The more people I met, the more deals I watched, the more I realized I was looking in the wrong place.

I've seen deals with average numbers close without much drama. I've also seen deals with incredible numbers fall apart over things nobody put into a spreadsheet: someone stopped answering the phone, an issue that should have been mentioned on day one wasn't mentioned until the last minute, one person got defensive instead of honest, another decided it was easier to disappear than to have an uncomfortable conversation...

Funny how often that's where things start to unravel.

The longer I've been around real estate, the less I pay attention to who's making the biggest promises. I pay attention to the people who call back when they say they will. The ones who say, "We've got a problem," and then immediately follow it with, "Here's how I think we can solve it."

I've probably forgotten hundreds of rates, purchase prices and loan amounts over the years. What I remember are the people.

I remember the investor who stayed calm while everyone else was panicking. The lender who picked up the phone at 8 o'clock at night because a closing was hanging by a thread. Those moments don't make headlines, but they save deals.

Looking back, I don't think real estate is really a people business or a numbers business. It's a trust business.

The numbers get you interested. Trust is what gets you to the closing table.

(However, is there a lesson that one can learn before he gets into the business? Looking back, I'm not sure I would listen to my older self.)