So, when is it actually the right time to step back from a deal? Well, the sad truth is that your inability to walk away from deals — even when you know they will not work in your favor — will end up costing you in the long run. However, it is also true that a lot of people step back from deals when they should not, usually due to fear.
What I want you to get out of this article is to understand the things that you should work towards not doing.
How to Invest in Real Estate While Working a Full-Time Job
Many investors think that they need to quit their job to get started in real estate. Not true! Many investors successfully build large portfolios over the years while enjoying the stability of their full-time job. If that’s something you are interested in, then this investor’s story of how he built a real estate business while keeping his 9-5 might be helpful.
4 Things NOT to Do in the Quest for Great Real Estate Deals
Do Not Have a Small Pipeline
If you discover that you are completely incapable of stepping away from any deals, you might have to think carefully about the size of your pipeline. You tend to hold onto nothing simply due to the fact that you have absolutely nothing to go to. You are itching to find mere pieces of crumbs. But what are you doing? You have to learn how to push out marketing to keep the pipeline full! Only those people who have absolutely no other possible options are scared of walking away from a deal even if it is going to do them more harm than good.
Do Not Discard Contacts
If you get an off-market property lead and maybe the person isn’t quite at that point in their life where they are ready to sell at your low-ball offer, do not simply discard all their info or put it to the side and forget about it altogether! After all, the true power lies within the follow up. Remember, while they might not be ready to sell it at this present moment, they might be in six months’ time. Do not just passively wait for opportunities to float in front of you — actively seek them!
In the past, I have had sellers tell me they would never accept my offer in a million years during our first encounter. A couple weeks go by, I follow-up, and the seller accepts my low offer due to a change in their level of motivation. Using a CRM helps with keeping these contacts well organized. Keep good notes so you can refer back to them when following up with leads.
Do Not Manipulate the Math
From time to time, it might be best to remain conservative when running numbers for your deals. Do not try and adjust your numbers around simply to force a deal to work. This usually just leads to long term distress and trouble. For example, even if you really love a property, overpaying for it can seriously hurt you in addition to your cash flow in the long run. Take note of “do not have a small pipeline,” as this step can actually also be affected by not having a large enough pipeline.
Do Not Give Up Before It Starts
If you really want to head on the road of success, it is highly essential that you learn to say “yes.” After all, how many entrepreneurs have you seen take that massive leap of faith and opt for optimism rather than a more pessimistic take? They know that the word “yes” comes with so many more options, possibilities, and adventures than the word “no” — once “no” is said, it is done, but when “yes” is said, the path goes on.
Therefore, the next time you are presented with a chance, do not give up on it before you even really give yourself a chance to succeed. It is so essential that you remain positive and at least have a look before you give a firm shake of your head. Remember, successful people live by risks and well-taken opportunities. So be ready to spread your wings and fly!
What actions would you say you should avoid like the plague when trying to fill up your deal pipelines?
Leave your tips below!