One Mistake Even Experienced Real Estate Investors Make
Aug 27, 2018
The biggest problem real estate investors make is taking down the wrong deal.
As investors, we have 1 job - (2 really)
Do the right deal.
As renegades, building legacies we have 2
(2 is make money)
Too many times you can accept the wrong deal.
I have done that a lot.
One time I took a tri-plex that had a LOT of shit going on.
It had section 8 fraud going on.
The seller was taking checks for a unit that was occupied by someone else because the section 8 unit wasn’t gonna pass (the guy didn’t want to fix it).
It was in the HOOD and needed a shit ton on rehab work! (even I was like oh shit this is a rough place lol)
Shit was literally everywhere.
Actual shit!! The walls and everything.
People that looked homeless sleeping in the garage, kids covered in flea and bed bug bites ... (poor things).
The property was 6 months behind in payments, and going to foreclosure sale.
I knew that taking this deal based on NEVER doing a deal that has all 3 problems
(1 a money problem , 2 - people problems and 3 - property problems, I call this the trifecta) which is an immediate walk away.
But I did it anyways.
I fought myself on it and lost a lot of money.
I got sued and had to use profit from my next deal to make good on a screw up.
So the one massive mistake experienced investors make is NOT knowing when to walk away.
This is an experienced investors nightmare.
It’s a mistake to be “Captain save a seller”!
Don’t do it! Lol.
Leave these to the foreclosure players.
Renegades do deals that conventional investors ask ... damn that’s a nice deal... how did you do that?
Not holy shit - WHY did you do that deal?
Sometimes experience makes you think you can DO anything.
But just because you can, doesn't mean you should.
Here’s how to make sure you avoid that shit like the plague.
Have written walk away rules and DONT BREAK EM and let people on your team know to not let you do it.
Don’t do deals that look like you’re getting into a shit show.
You’re here to solve A PROBLEM maybe 2.
Not something a seller did that THEY have to pay the piper for themselves.
Renegades do deals that makes money and builds legacies of changing lives.
You can’t do that taking the WRONG deals.
Here's some homework:
Write down your NO gos?
Create some or use mines.
Do this and you’ll do great