How Pilot Training lessons have helped me in Real Estate #1

When I started pilot training, I knew absolutely nothing about planes. I didn’t know the difference between and Boeing 757 and a Cessna 172 (they’re super different FYI). I was a Political Science major in college for God’s sake! I could talk your ear off about the Marshall Plan and it’s effect on the European economic recovery in the Cold War, but I knew nothing about Bernoulli’s principle and all the other scientific stuff that makes planes fly. Lucky for me, we started with the basics.

From aerodynamics to formation flying to rules and regulations, it seemed like everyday a ‘knowledge bomb’ was getting dropped on me. Some of these lessons only lasted until the next test was done, whereas others have stuck with me ever since.

It wasn’t until I found Real Estate Investing that I started to notice how deeply seeded some of the lessons I was taught were. The first lesson I would like to share is the OODA Loop, and how it helped me break through “analysis paralysis.”

The OODA Loop

The OODA Loop is a four-step decision cycle created by Col John Boyd. Boyd was a famed Air Force fighter pilot as well as Military Strategist whose career spanned four decades following World War II. He was known as “Forty Second Boyd” due to his standing bet with any other pilot that, when starting from a position of disadvantage, he could defeat any opposing pilot in air-to-air combat within forty seconds. This skill was possible, in part, due to Boyd’s creation and usage of the OODA Loop.

• Observation: the collection of data by means of the senses
• Orientation: the analysis and synthesis of data to form one's current mental perspective
• Decision: the determination of a course of action based on one's current mental perspective
• Action: the physical playing-out of decisions

Although we have all seen step-by-step decision processes before, the OODA Loop is different. It’s different because it emphasizes speed. Boyd believed that the pilot who could go through his OODA Loop faster would win, because his opponent was responding to events that had already changed.

So what does this have to do with Real Estate?

About a year ago, I was stuck in the dreaded realm of analysis paralysis. I spent 6 months doing nothing but reading about real estate and playing out every possible scenario in my head. I was prepared, I was well read, but I just couldn’t pull the trigger.

I took a long hard look at my decision making process, and realized that I needed to shorten it up. I sat down the next morning and gave myself one day to go through the OODA Loop. This is what it looked like.

• Observation: Chose 10 properties within my criteria from the MLS. Collected info on comps, neighborhoods, schools, rehab needed, rent potential etc.
• Orientation: Analyzed data. Narrowed it down to 2 properties that could cash flow $300 per month and fell between the 1% and 2% rule.
• Decision: Scheduled two showings and selected the house with less work needed.
• Action: Secured financing that day with lender.

By shortening my decision cycle and giving myself a time limit, it allowed me to finally break through “analysis paralysis” and buy my first investment property.

For more information on Col John Boyd and the OODA Loop, pick up a copy of the book “Boyd.” It’s a great read. Enjoy!

Amazon Link Here!

Sincerely,

Tyler