Why You Need a "Deal Killer" In Your Life as a New Investor

[Jonathan Greene]

The adage about who you surround yourself with is accurate. The five people you spend the most time with will influence you. But as a new investor, sometimes this advice leads you to only have cheerleaders in your life. Don't get me wrong, cheerleaders are essential - they make you feel good, are always there to lift you, and cheer you on no matter what. The only problem is that last part - no matter what.

Every new investor needs a "deal killer" in their life. This is why:

1. A deal killer is a voice of reason when you are emotionally attached to a shiny object (it could be a property or a new guru course).

2. A deal killer has no emotions. They are focused on the numbers and your well-being when you aren't.

3. A deal killer has nothing to gain from telling you it's a bad deal. (For this, your deal killer can not be a direct competitor. You must have built the trust to know they aren't telling you it's bad so they can take it. Real deal killers don't do that.)

4. A deal killer doesn't shy away from conflict. When you are new to the game, agents, wholesalers, other investors, and even you can push you around. A deal killer doesn't mind hopping into the fray and telling everyone the truth.

5. A deal killer has the experience that you don't. They can see the things you are missing because they have missed them before and they know what happens when they do.

So, make sure you have those top five in your life. The ones that motivate you and keep you on track. But don't discount a deal killer as negative when they only work in your best interests. When you are new, you can be your worst enemy (due to lack of knowledge, ego, and FOMO).

If you are new, do you have a person who tells you that some deals suck?

If you are experienced, how important do you think it is to know a deal killer?

[Marcus Auerbach]

Very. Ideally your alter ego can do it, but for some people it is better to ask someone who does not care one way or another. Like BP.

Just responded to a guy who bought a section 8 remote and is finding out the hard way that this was a mistake. What he does not know yet is that selling even with a loss, is not going to be easy either.

You don't need to make all your money on your first deal. Keep it simple, paint and carpet, buy a good house in a quality area. It is better to even be slightly cash flow negative in year one with a quality asset than to buy in the hood and find out that your xls spreadsheet did not tell you the whole story..