Today’s question comes from Chris in Long Island.
“I’m having a hard time getting offers accepted. I’m seeing so many people closing deals on social media. We keep getting outbid. What am I doing wrong?”
Chris this is a great question.
I can’t say that you’re doing anything wrong. The worst thing you could do is pay too much for a project simply to get the short term feeling of accomplishment that you got a deal closed. If you paid to much or bought the wrong project, that feeling of accomplishment will be terribly short lived and you will spend months or even years trying to recover from having made a poor decision.
I can guarantee you that hardly anybody is posting on social media that they cancelled a contract, or that they got outbid, or that a project got delayed because of an issue with title insurance or a lender.
People tend to post their successes only. You don’t see the majority of the projects that don’t see the light of day.
One of the most successful investors I know looks at hundreds of deals before pulling the trigger on a handful. Even then only a small percentage of those will actually close.
It’s a bit like playing the comparison game with photos in a magazine. You don’t see that the model is wearing makeup, that the photos have been modified in photoshop. That extra bit of flabby skin on the back of the arms have been slimmed down and eliminated to appear thin and toned.
The problem is that when you play the comparison game, the comparison is against a magazine cover that is not real.
Host: Victor Menasce