The Two-Minute Rule (That Changed the Conversation)
A couple of financing conversations this week reminded me of something I don't think we talk about enough.
One investor spent almost twenty minutes explaining his deal.
He started with how he found the property, then told me about the neighborhood, then the seller's situation, then what happened during inspection...
By the time he got to the numbers, I was still trying to figure out what the actual deal was.
A little later, I spoke with someone else. He said something like this: "I bought it for $180,000. It'll take about $70,000 to renovate. Comps support a $340,000 ARV. I expect to be done in four months."
That was it. Two minutes. Ironically, we spent the next twenty minutes talking about the details.
I've noticed that's how many experienced investors communicate. They don't leave out information. They organize it.
Once I understand the purchase price, rehab budget, ARV, timeline, and exit strategy, I can ask much better questions. The conversation becomes productive instead of confusing.
I've seen great projects explained poorly. I've also seen average projects presented so clearly that everyone immediately understood the opportunity.
It has nothing to do with talking less. It's about making the important parts easy to find.
I'm curious if others have noticed the same thing. When you're evaluating someone's deal, what's the first information you want to hear?
- Drago Stanimirovic
Most Popular Reply
The first couple of minutes should tell you whether it's worth spending the next twenty on. Once the basic numbers make sense, I start digging into the assumptions, financing, and risk. If those hold up, then it's worth spending the time to understand everything else about the deal.