Get Smart and Stay Smart: Don’t Let Your Emotions Reck Your Deal!
Is it too good to be true? Do you suffer from the disease called “gotta get a dealitis”? Have you ever heard about an investment deal that was too attractive to ignore? Often, people find what appears to be a great deal, and allow their emotions to carry them away and purchase an investment property for more than it is worth, or at least for more than they can realize a return on it. They do that as they are desperate to get their first deal!
Don’t make this mistake - keep your emotions in check and make sure that you are really thinking through the process and even install a 24 hour rule to review…before you decide to clinch a deal.
Sometimes people find a property that they like. The property requires little work, and the price is attractive. In the right market when the buyers outnumber the sellers, the investor may make a considerable profit. Many issues, however, affect the value of a property and you have to look into the details. Sometimes, many similar listings are available for purchase. In this case, the supply may far outweigh the demand. In such a case, the real estate investor is unlikely to realize a profit, or at least a very big return, because the property will more likely than not be difficult or impossible to sell as their simply are not enough buyers out there.
In addition, remember that realtors, especially good ones, are working to make money and pay their own living costs - so they are thinking of themselves as NUMBER ONE and YOU as number TWO - ALWAYS REMEMBER THAT!!!! Their goal is to sell you properties. They will make a profit whether you do, or not and that is a nice position for then to be in isn’t it? Remember that just because someone offers you a deal that sounds enticing, don’t lose your head - or your shirt - on the deal.
Take the time to do your homework; research the local market and the neighborhood. Really get to know the numbers of supply and demand. Analyze the information to determine whether this deal really is will work for you. Even if you really like the property, and find yourself excited about the deal, make a cool hand luke decision without emotion.
Filed under: Maria Gudelis
