Singles, Doubles and Triples

Today. I want to talk about this business and my journey so far when it comes to judging deal success using a common baseball analogy. I'll also share one of my virtual mentor’s nuggets he shared with me in his book (link below) that has helped me changed the way I look at exiting all of the transactions I’m doing.

Singles:

These are simple. A solid deal that is the minimum profit you need to make depending on your preferred exit strategy. As my good friend Larry Friedman at. SDF Capital says. “This is a singles business”.

Example: Buy for. $125,000 and sell contract to end buyer for $12,000 assignment fee.

Doubles:

These are a bit sweeter. When I hit doubles when I’m up at the plate, I am normally surprised because my intent was to try and not lose my shorts on the deal and just walk away with a single. These are where you're going to see your profits double (pun totally intended!)

Example: Buy for. $130,000 and close on the deal to list and sell on the MLS for $175,000 so you keep 75% of the gross profit. The more I close on the deals now, the more doubles I am hitting opposed to the assignment I would have had that would have been a classified usually as a single.

Triples:

Now, this is where it starts to get interesting and the fat profits can start to reveal themselves. In my book, a triple is going to be a deal that is one step behind a home run (obviously) but can set you up for a paradigm shift in your approach. I'll let me example explain.

Example(real deal I did 3 months ago): I got a house for $30,000 in DFW and we had a cash buyer ready to roll sign unseen foreign the $60,000’s but we knew this thing would be a better deal if we just closed and listed it because the area (specific part of Fair Park) was starting to turn around because we saw new builds going up down the street. We decided to close and within 24 hours we had a ALL CASH offer of $82,000! Id say that was well worth closing on.

Homeruns:

Self-explanatory. These the deals that change lives for the better and set new company records.

The lesson I learned from my virtual mentor Jim Randel:

In his great book (it changed my life and business) “Confessions of a Real Estate Entrepreneur” Jim Randel talks about the idea of investors getting greedy and

“Trying to turn a single into a double to then get thrown out at second base”

This is the idea of trying to turn a GOOD deal into a. GREAT deal and taking the risk of losing the deal overall because you. I have done this. Too many times and now I realize that normally the first few offers on a property are going to be the best offers and I'll take them so I don’t get stuck.

If you are an interested in real estate but don’t have the time or expertise to get into the weeds right away, I’d love to have a conversation with you to explain how we could join forces and work together.