I had planned on writing about something else, but I’ll save that for another time as I’d like to address a new issue… that I unfortunately just lived through. As in literally a couple hours ago (at the time of this writing).
The Scenario: The Great Wholesale Deal
This morning (Thursday) I had some coffee with a real estate investor I do quite a bit of business with, and the purpose of the meeting was to talk about another possible strategy that we could utilize. Through setting up the meeting (Tuesday evening) he mentioned he had gotten a solid property under contract that he’d be looking to wholesale. After doing some quick analysis, I could tell it was a good deal, but figured, “Hey, I’ll pick his brain a bit more about it when we meet.”
The morning of the meeting (a couple hours ago as of this writing) we are sitting in his office sipping our coffee and talking about the house he has and the potential exit strategies and his phone rings. I do my best not to ease drop, but when it’s happening 4 feet away from you, sorta hard not to do. The conversation wasn’t sounding too promising for me.
He hangs up the phone, apologizes and says, “sorry, it’s gone now.” Ah man!! Stupid me!
I can’t be mad at the guy. He told me and the other guy about it, and the other guy pulled the trigger before me. Good for him, stupid on my part! From a wholesaling perspective, he had every right to tell MORE people than just me and the other guy, so I had no room to complain. Business is business, I hesitated, and it cost me a good deal.
On the way home, as is probably human nature, I started to go through the “what ifs” in my head. The one that stuck out was, “What if I had gotten coffee with him sometime yesterday?” I would have easily beaten that phone call and had the deal for me.
Lessons Learned from My Lost Real Estate Deal
- Don’t be so polite! There is always a place for politeness, but I should have just causally asked, “Can you do coffee any sooner?” Worst he would have said, is “no, my schedule is completely booked.”
- Don’t get lazy… even if it is around the Holidays. It’s Real Estate Investing 101 that when you have a good deal, you need to get moving on it. Even though it was just a day, this goes to show you how fast deals can move.
- Learn from your mistakes. I’m still working on this lesson as I type, but this was clearly a mistake, so I need to learn from it. I’m hoping that part of the learning process is me doing this public article and sharing it with everyone.
The Bottom Line
Whenever there is a deal involved, get a bit pushy with things. I’m not saying be rude and unprofessional, but as I’ve already discussed, being “pushy” in my case would have been a simple question of seeing if the coffee sit-down could have been any sooner.
When a deal is really a deal, it’s obvious (especially if you have stress-tested it), so as cliche’ as it may sound, you can not hesitate.
I know this article is pretty short and basic, but I can’t say I’ve ever seen a deal disappear, literally, before my eyes as I’m talking about the deal. Not only does it provide a good lesson, it is keeping me accountable to learn from this. Hopefully a win-win for us all!
Have you ever had something like this happen to you? Ever hesitation in one way, shape or form that ended up costing you a deal? What did you learn from it? Share your comments below! After this experience, I’m very curious to see if anyone has ever been in my shoes before.
Photo: Martin Fisch