The nature of the property investing cycle
There are times in any property investing cycle when you will be tempted by an inner voice to “do a deal.” Unfortunately, you’ll get yourself hyped up over what a great deal it will be, and you’ll proceed to ignore many warning signs – signs your intelligent self would normally avoid, with huge red flags waving all around you.
Solid investment property information will tell you that it’s always a good idea to have a team surrounding you to help you out in these circumstances. A team that will honestly evaluate the data you’ve collected, and will help give you a clue as to what a “great” deal” you’ll be making. If you’re the only one seeing how great the deal is, perhaps it will be time to sit this one out…and do nothing. I read recently an axiom I find so true: “wealth is the transfer of money from the impatient to the patient.” Stop being so impatient!
Emotional property investing = death
When you’re anxious to close a deal you feel is a real winner, be on the alert that your emotions may be running away with you. If you get this feeling on all your deals, I certainly hope you have that team surrounding you to give you honest insight, and other sets of eyes on your crunched numbers. After all, it was the child in the crowd who yelled “The Emporer isn’t wearing any clothes!” You’ll want to have some sort of checks and balances in place as well before you close any investment property deal, so you too won’t be caught without any financial clothes on.
There truly are times when there is nothing on the market that makes sense for you. Good investment property information says that even though you feel you need to keep to your “schedule” of investment property buys you’ve set out for yourself, be sure to cut yourself some slack, and properly wait for the next good property buy to come along. You can always try expanding your geographic area while searching for your next investment, but be sure not to jump in too quickly. Always be on the alert for any emotionalism in your buying scheme. And make sure you temper it with a system of checks and balances (such as the aforementioned building of a trusted, reliable team behind you) to counter your original enthusiasm on any given potential deal that presents itself to you.
When the master speaks, listen
In this way you can benefit from some of the investment property information (and ultimate wisdom) of Warren Buffet, as he has been previously quoted as saying: “the trick is when there is nothing to do, do nothing.” Or, as I like to paraphrase, when you spot a “great” deal – just “cool your jets.” After all, there are intervals in the property investing cycle when it is best to just sit back and wait for the right opportunities to present themselves. If it’s meant to be, it will materialize. When you remove the emotionalism from your investment buying decision-making, you’ll find you can become a better negotiator overall. And that factor should ultimately produce greater profits for you in the long run of your investing property cycle.
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