Real Estate Investing with Brian Evans Jr.
"Exit Strategies and Professionalism"
There’s an old adage that you make your money when you purchase real estate. That said, when do you actually get paid on most transactions? Sure, it’s when you sell, and that points to mastery of exit strategies, as a fundamental skill required for all real estate investors.
The good thing is that there are only so many exit strategies you have to choose from, making your decision process easier. The down side is that this is sometimes still a tough decision you have to make and one that trips up many novice investors. I’ve often thought that the best way to determine the quality of a deal is to look at how many different exit strategies will work. The more strategies that work with your numbers, the better the deal.
While I’m not going to go into all the details of each way to exit a deal, I will say that your income does tie directly into how well you decide among them. Your profits depend on this and the best advice I have is to make your decisions expeditiously and with absolute conviction. A decision made quickly is not necessarily done in haste; rather, it is efficient and shows the confidence you have in your own decision-making power.
Having conviction in your decisions builds confidence. Sure, you may look back later and realize that an alternate choice of exit might have been better for a particular deal, but the one you did choose made money for you, right? OK then, stick by what you decided and add the results to your mental database so you can consider different options the next time around. This approach will give you confidence and be impressive to your peers and clients.
Ability to Remain Unemotional About Business
The old adage ‘its just business’ is the foundation for this valuable investor skill. In short, you must be able to separate business from your emotional side to be operating at peak efficiency.
There are several reasons why emotion can creep into the business of real estate investing, some of which include:
1. Real estate is a people business and people have emotions.
2. People often have emotional ties to their home.
3. Transactions involve money and people tend to get funny about money.
Some deals involve stressful or emotionally charged situations in a client’s life.
Recognition of where the emotion can come from is one thing. It is another to rise above it and choose not to let your emotions get in the way of good business. I know, easier said than done, right? This is likely a skill that many investors will need to work on more so than others but it is worth the effort. You don’t have to be so unemotional that people see you as a lifeless drone and please don’t confuse lack of emotion with lack of personality. Your personality should be on full display but it is on you to not let your emotions dictate your decisions.
If you remember anything from this section, remember this, fall in love with the numbers and not the house.
Keeping your emotions out of the picture is more in reference to not letting a client’s emotional state affect how you do business, or the proposal you make to them. It means not taking business issues personally. It means stepping back if you feel yourself getting emotionally wrapped up in a business setting and regrouping. These kinds of things will help you avoid bad situations and will also add an air of professionalism to how you conduct yourself.