If you’ve done a real estate deal you totally get that there is a rush involved. It’s kind of the nature of the beast. Real estate can be competitive, fast paced and let’s face it probably the most amount of money you’ve ever spent in one transaction!!!!
But if you’re a real estate investor, I really want to encourage you to take the emotion out of the deal.
Investing with a level head is critical to making rational decisions. Emotions can cloud your judgement and lead you to making impulsive, irrational decisions. When investing in real estate, you need to base your decisions on hard data and market research.
So here are some tips I have for you to remove the emotion and avoid costly mistakes:
- Set a clear budget and expectation for the property you’re looking to purchase. Use one of our calculators to help you figure that out. If you have your requirements and deal breakers set in stone you won’t waiver on something irrational.
- Don’t work with an agent or lender who is pushy. There’s a balance here. You want someone who is following up with you, sending you listings and showing you homes. But a major red flag is someone who shows you properties outside of your price range or shares too much of their own emotion like “I love it for you!”
- If emotions do come up (and they will!) have a healthy way to work through them BEFORE making any rash decisions one way or another. I’m a huge fan of working out, going for a walk or a run, definitely sleeping on it, and if that still doesn’t help: I talk to my realtor – they’re actually really familiar with how scary this can be for folks and will be your best resource through the tough parts. I let them know I’m not going to make any decisions from emotion, but I just need to vent. Be wary of talking to well-meaning friends and family who will just freak out with you or make matters worse 🤪
- Okay, okay: now you can show some emotion: at the end of the deal! Once you land the deal where the numbers work – heck yeah, let’s celebrate!!! You should feel fired up when you close a good deal. While real estate investing is a numbers game you do have to trust your gut a lot too and when a deal goes through you can’t help but feel pumped.
Want to learn how to do deal analysis so you can make a smart investment decision? Download a deal calculator or reach out to a member of The FI Team and we’ll show you how to run an analysis.