SOLVING PROBLEM MINDSET

[Jason Malabute]

The reason why people sell their property is because they are experiencing a problem. The bigger the problem the bigger the motivation and discount. People sell their problem property and never their best properties (not until their best properties turn into problems).

Let me use myself as an example. 1 year ago I had 3 single family homes that I didnt have any thoughts of selling any of my properties until 5 years later. Then Covid happened. One of our tenants lost their job and that property was not cash flowing anymore. After a few month of the tenant not paying and repair work orders happening at the same time I was more motivated to sell. When I finally found a buyer that was willing to pay enough money where I didn't lose capital I was more willing to give the buyer a concession because I was getting my problem solved.

Even after selling my hell house I wouldn't sell my "good rentals". My mind changed when I decided to quit my accounting job to be a full time investor. I wanted to be liquid to invest in multifamily and support myself as I hunt for a multifamily deal. Notice that my decision changed as a new problem arose and a desire to sell arose as well.

So train your senses to sniff out problems.

Additionally, most passive investors will invests with real estate professionals because they have money and a desire to invests in real estate but:

1. lack the time to look for deals themselves

2. lack the knowledge to find good deals

So when people invest with you and your deals you are giving them to invest in opportunities that they would not have had by themselves.You should be coming from a "giving" mindset instead of a taking mindset.

In conclusion, by coming from a problem solver mindset is how you find deals and money.