Don’t Let Emotions Kill an Investment Deal
Letting emotions get involved in a real estate deal can break you. A good real estate investor knows they must keep their emotions in check. You are there to help the seller and yourself. If you can keep your emotions out of a potential real estate deal, you’ll be better equipped to view each deal objectively and set yourself up for success in the long run.
Yesterday I went to close a deal that I thought was done. I had already come to an agreement on price and terms with the seller, and I thought we were simply meeting to sign the contract and close the deal. When I arrived, the sellers (mom and daughter) were there to meet me. After they showed me to home, they called the husband and begged him to come over and meet me. No problem, right? Wrong.
When he showed up he was in a hurry and quickly pulled up and jumped out of his truck. He walked up to where we were standing puffed up with an obvious attitude, and immediately tried to set the tone that he was in charge. He stood back defensively and refused to shake my hand. Clearly this deal had taken an unexpected turn. This set me off guard, and when I told him I was ready to sign the contract for the price we had agreed on, he said no. He set a new price at double the original agreement. Just to set the tone, this home had recently been in a fire and needed a complete rehab.
I’m not saying it’s easy to keep your emotions in check, and I’ll use this as a perfect example. His attitude and demands got the best of me here, and I told him no and walked away from the deal. While I’m not saying you should let yourself be taken advantage of by giving into the seller or buyer when you’re met with hard negotiations, I will admit that I probably could have saved this deal.
ALways try to save the deal
Had I taken a step back from the situation and taken deep breath, I admit we could’ve found a compromise. He needed me more than I needed the deal. I should have taken the time to calm him down and helped the mom and daughter out. There was enough flexibility in the terms that I could’ve paid more for the property and still have made some money off the deal. Obviously the mom and daughter needed the money, but I didn’t have to buy that property. That’s not to say I’m not looking for profitable opportunities, and I could still make a profit off this property.
His attitude and approach killed the deal for me and I chose to walk away completely. Some would argue that I made the right choice and shouldn’t be willing to put up with difficult buyers. I would use this as an example of letting my emotions get the best of me.
I let my pride stand in the way of helping a family who needed to sell the home, and killed a deal that would’ve still made money. Real estate investors need to be able to keep their emotions in check, and sometimes that means letting the other party do a little bit of posturing to get the deal closed. Investors need to always keep in mind that when you buy and sell homes for a living, you’ll be dealing with people on a daily basis. Sometimes people can be difficult or emotional. It happens. Just don’t let emotions keep you from a deal that could make you some money. Never let people walk all over you, but don’t let pride stand in the way of your long-term goals. The most successful investors are those who get the deal done, no matter the circumstances.
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