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Do A Deal Itis
I recently heard this term in an interview I did with Jim Zaspel. My partners and I have always discussed the symptoms of 'Do-A-Deal-Itis' but I have never heard it termed this. This is a very easy disease to catch in real estate if you are not clear as to why you are in the business. The only reason you should be in the business is to make money. When that is not clear as to why you are here, you can find yourself in a position where are doing doing deals just to do deals. This means you might be making or even possibly losing money on deals because you want to believe you are busy and doing deals in the industry. This will eventually bite you because if you are scaling your business on very skinny margins you will find yourself at some point having to do so many deals per month to survive that it is not sustainable. You are also taking on a lot of risk by doing transactions that don't pay out well. If you are going to take on the risk, be sure there is a lot of spread on the back end because losing money is not an option. It is a short lived practice in real estate investing.
Ian Walsh
215.839.3271
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