One of my favorite movies of all time is The Princess Bride, and one of my favorite scenes is the epic fencing duel between “The Man In Black” and Inigo Montoya (of the “You killed my father, prepare to die” type). Immediately after the duel begins, Montoya asks The Man In Black, “who are you?” Getting refused an answer, Montoya says, “I must know.” The Man in Black’s response? “Get Used To Disappointments.”
This is the mood I am in today: Getting used to disappointment. I found a house on the market several blocks from my own a few days ago, and instantly fell in love (mistake number one). Not only was it in a better neighborhood but it had a huge yard, had natural gas heat, and was priced almost half of what other homes in the area sell for. With a few weeks of labor and a few thousand dollars this home would have been both the perfect investment and also the perfect home for me to move into.
This was on Monday. Today (Friday) I decided to begin my pursuit on this marvelous home and much to my surprise: the house already has sold (well, “pending” anyways). Just yesterday the house was listed as “active” and today it’s gone. Had I jumped on this deal on Monday, I probably would have had it.
Real estate is often looked at as a “slow” investment – and it often times is. However, there are many times in real estate that you truly have to be on the top of your game to get the great deals. This lesson hit home with me this week (no pun intended), and clearly I was not on top of my game this week. But rather than moping around, feeling sorry for myself, I am using this experience as a learning tool.
So what did I do wrong this week? When I looked at my mistakes in pursuing this house, I came up with three principles that I dropped the ball on this week. The following are those three principles that must be adhered to in order to find success in finding great deals.
- Be Decisive – If you want to find a property, you need to decide that is what you are going to do. Successful investing requires focus. Great deals are not going to magically find their way into your hands from your indecision. I don’t believe you need to be decisive all the time, focusing on scoring great deals every day for the rest of your life. However, when you are ready to buy – commit fully.
- Be Aggressive – Once you find the property you want, make it happen. Don’t wait on the phone for a day for a call-back. Make it happen. Be the one making the waves, not the one riding them.
- Be Resourceful – One of my favorite quotes of all time is “You don’t lack resources, you lack resourcefulness” by Tony Robbins. When you are trying to make a Real Estate deal happen quickly, you will run into bumps. Lenders will buckle, investors will get worried, and people flake out. You must have several strategies and back-up strategies in place so you can overcome these hurdles.
I’ve written these principles not just for your benefit but also for my own. Even seasoned real estate investors need a good reminder that good deals will pass by if we sit by and let them.
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