What has been your best lesson learned in R.E.?

Question

I'm interested to see what has been the greatest lesson you have learned while actively pursuing your real estate investment goals. It doesn't matter if it was learned via a success or failure.

Mine has been that you make your money (i.e., control risks) when you buy. I still have trouble with this lesson, however, because I'm so excited to get units under my belt that I will sometimes accept a deal with only a little bit of meat on the bone as opposed to the recommended 20-30%.

Rachel H. · Answer

One of my most learned lessons when working with contractors is to always ask for multiple opinions. There are different ways of solving problems and those who work for hire all bring various experiences to the table.

John Moore · Answer

It is not purchsed or sold  until the deal closes.  This includes both ends of the transaction - buying and selling.  As the old saying goes, don't count your chickens until the egg is broken.

Daniel DiGiacomo · Answer

The greatest lesson I've learned is don't fall in love with anything... don't fall in love with money, a property, seller, buyer -- anything.... stay focused and don't bend your business rules just because you "really love the deal".

Frankie Woods · Answer

@Rachel  H. , thank you for that lesson!  I have yet to perform any true rehab work, but hope to soon.  I think that most value plays will be made with distressed properties which will require, for most of us, contractor work.  Ensuring that you get mutiple bids/opionion can not only increase your options as far as work to be done, but also really help you get an accurate assessment of the expected costs.

Frankie Woods · Answer

@John Moore

Have you had many situations where you needed "backup" buyers/sellers?  I always feel like it would be "sneaky" to leave others waiting just in case a deal falls through.

Frankie Woods · Answer

Great lesson @Daniel DiGiacomo ! I think this rule probably trumps my own.  If you don't fall in love with any aspect of a deal, there is little chance of you allowing emotion to interfer with the logic of getting a good deal (e.g., letting the numbers do the talking).  Thank you for your comment!

What has been your best lesson learned in R.E.?

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