Betcha you’ve had this same experience, or close to it. Many years ago I was given marching orders by the woman in charge (I know, redundant.) to buy new shoes for some semi-kinda-sorta dressy type events comin’ up. I saw nothing wrong with the shoes in the closet at the time, but was over 40 so knew the futility of debate. Off to Nordstrom’s I went, per further suggestion, making a mental note that goin’ alone was a victory of sorts.
Guys know what happens next.
Upon arriving at the store I quickly, OK, eventually, locate men’s shoes. I look at several styles that don’t cause me to lose my lunch. Meanwhile the experienced, very dapper salesman arrives right on cue, asking if I’d found anything yet. Pointing to four different shoes, I say ‘9’, ‘D’ if ya have ’em. He took off while I found a place to sit.
He’s back in a few minutes with half a dozen boxes or so. He brought the four I picked, and a couple more of the same style, different maker. Cool, good thinkin’. Tried ’em all on, walked around a bit, was satisfied they wouldn’t make my feet bleed. Bought a pair of black, brown, and two-tone brown on black. He boxed ’em back up, met me at the register, and before ya know it I was headed back to the car — mission accomplished.
Got what I went there for, and the whole vignette took less than a half hour from the time I turned into the mall till I was headin’ back to the freeway onramp. Neither of us would remember the other’s name by the time I was backing out from my parking spot to head home. He’d answered the few questions I had with solid info. I said what I wanted, he produced it, we both came away from the transaction smiling.
Though an appropriate experience when buying dress shoes, it’s also virtually analogous with most newbie real estate investors’ first few times out buying income property with their real estate agent.
Don’t think so?
Here’s the script I’ve heard first hand from dozens of clients over the years — their own experiences.
They study up, one way or another about income property. They join this or that club. They talk with their Uncle Kenny who owned a rental house once, back in the 1960s. They attend a seminar or 10. With all that preparation plus the money they’ve saved, they declare themselves ready. They call Rick, the agent who sold them their home several years ago. The guy flat knows what he’s doin’, having been in the business over a decade. In fact, he’s sold many duplexes in his time, which makes our investor even more comfortable.
Rick dutifully asks exactly what Dennis, our investor, iss lookin’ for. Dennis tells him — a duplex located in one of a couple local zip codes. It must be in this particular price range, with this specific price/rent ratio. He then explains what he means by the whole ratio thing. The next day, Rick calls Dennis with a few potential properties, all of which sport the location, and other factors Dennis ‘ordered’. An appointment is set to see them.
You know the rest.
Dennis likes the second one which he winds up buyin’. It may or may not be a good, bad, or spectacular deal. It may not even be what he should’ve bought at all. It might’ve been too much or too little. Neither one of ’em will ever know, of course, cuz that sequence of events wasn’t much different than mine with at Nordy’s.
I’ve witnessed this scenario in real life/real time more than a few times when I worked for a big box brokerage. It’s painful to watch at times. But all that begs the real question, doesn’t it?
Does anyone really believe they can create a magnificently abundant retirement using the same approach they do buyin’ shoes?