Fast Track To Failure
This article was inspired by a concept that I bump into and felt it could help people avoid pitfalls when trying to be profitable and succeed in business and real estate. I frequently speak with potential borrowers that are just getting into the business or have done a few deals. There is nothing wrong with being at this stage as everyone is or was there. Remaining humble and unbiased is very important at this exact moment as it can alter the rest of your life.
When this particular type of investor presents a deal to me and I choose to pass or decide my max loan amount is less than they would like, they have a choice. (Option A ): They can either react in a way that appears that they are taking it personally as rejection. They believe the deal they have is better than what I believe and they will pursue it almost blindly at all costs and decide that I have no value to offer to them. Ego is heavily influencing the decision and is an easy tell from a mile away. (Option B): They can take that path or they can do what very successful and experienced investors do and respect the opinion or numbers I place on a deal and USE MY EXPERIENCE AS PART OF THEIR DECISION . My opinion is simply another data point when deciding on the deal. It is not investment advice but rather a different view point. The most profitable investors we work with recognize that I have seen and been involved with the market since 2008 and done thousands of transactions. They realize that it doesn't matter if I am right or wrong, but I am giving them an opinion worth understanding. They do not take my decision personally regardless of the outcome. They know that if my numbers line up with theirs, I am telling them in a "secret money language" that I believe in their investment. If it doesn't line up, it is more information for them to digest. I am not always right, but it is always worth hearing.
Let's take this to another level. I am not comparing myself to the following people as they are very dominant in their areas but it might offer additional perspective to the readers. If you have purchased and sold 1- 10 properties in your life, you have the perspective of 1-10 sales. If you asked a guy like Mike McCann or Guarav Gambhir how to sell your next house, do you think you should listen? If you don't you are crazy. You have to pay respect to the opinion of people that have lead your industry for a long time as they will give you the advice of thousands of transactions. Would you go to Ben Oller and tell him how to manage a property? That would be a very ego driven move as his family is responsible for the entire direction of the industry. Would you tell George Beatty how to wholesale a deal? No chance. If you don't know who these people are and you are still holding onto your own biased belief of a certain piece of potential business because your ego is in the way, you will lose eventually. When these individuals have advice to give in their area of expertise, my ears are open. I am always humbled and respectful of the opinion of people that are very accomplished because when they speak on their particular skill set, missing the information would be a massive personal loss to my future growth. I would suggest others do the same if they truly want to succeed. Respect experience and someone else's time. Don't let your ego and personal beliefs get in the way of your own success.
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