I do believe that it is human nature to celebrate a championship victory as if it were out of character for us. In real estate investing, the championship is EVERY HOME RUN DEAL. Some investors never see a home run but have lots of hits and lots of RBI’s which is fantastic as well. But my concern here is that we get caught up in the hype of the potential profits of deal A without continuing to operate in a normal manner to see that the deals (B,C,D…) due to follow come to fruition. This temporary path off course is very prevalent in the sports world and the principle can really be applied to any industry.
Three weeks ago, an investor was making 15 calls per day, going on at least 1 appointment per day, and fulfilling at least 5 direct mail piece projects per day. The deal of a lifetime came rolling down the street. Picture this: A 5 bedroom 2.5 bath 4 level brick Row House placed in a historic district of Georgetown in the Nation’s Capital where the same property is selling for $700,000.00 +. The owners have allowed a contract to be executed “subject to” the existing financing giving the sellers $100,000.00 at the table and taking over the payments of $3100.00 per month. HOME RUN! The ability to negotiate that contract was like winning the NBA Championship for that investor.
The problem was that the investor’s concentration left the business itself and his focus became the deal. He started forgetting to make those 15 calls a day, he forgot to schedule his 1 appointment, he wasn’t returning phone calls, and all of the sudden he felt that the direct mail pieces weren’t quite as important anymore. Because this deal did not come from a traditional marketing source, the investor felt that the other items were not where his attention should be. WRONG! WRONG! We all know how the story ends. Lack of attention to the details of the mortgage and the situation of the seller resulted in a dead deal. Because the most important part of the machine (the real estate investing business) was not in operation for 3 weeks, there was no pipeline to look to for appointments and/or potential deals.
I always tell my colleagues to RELAX but don’t be LAX. This quote really sums it up:
“I have what I have because of what I’ve
done. If I continue doing what I’ve been
doing, I will have only what I have now. If
I don’t change what I’m doing, things won’t
change for me.”
Even though you’ve gotten a good result this time. That same strategy may not get you the same the next time. Teams lose games because of this attitude, championships are lost, money is lost, and it is all because of mindset. You are supposed to WIN. When you hit the home run act like it is what you expected and go back to the everyday. The everyday wins back to back championships.
Blessings to Your Real Estate Investing Success,
Milton B. Yates