Which are you? Neither, I hope.
How many times have you found yourself getting caught up in the emotions of negotiations or wanting to help a buyer or a seller when the numbers just didn’t make sense?
I had a seller come to me last spring about a four unit he was selling for $70,000 with 50% occupancy. The comps were good and the place could cash flow a couple of hundred dollars a month when completely rented, but I still thought he was asking too much and the numbers were a little too tight. I passed on it at the time and opted to wait and let him get a little more anxious. In the meantime, I completely forgot about the property.
That is until I found it again, with the price quite a bit lower…$25k lower. The seller was now asking $44,900, had it 100% occupied, and I was pumped. I knew we had several buyers who would be very interested in picking something like that up, and I was right.
Before, when the seller asked me why I couldn’t find him a buyer, I just told him his price just wasn’t good enough. He just knew he could and would get more for it and was willing to wait. So was I.
That’s what makes it fun to be in a buyers’ market. You don’t have to worry about one deal being lost, because even if someone else will pay that much for it, you can find something else. There is always another deal.
Learn to lay your emotions to the side and, when needed, just tell them “it’s not good enough.” Give them a year, and watch the price drop.
Don’t be the guy who payed $70k for it today. Develop a little patience. You may just be the investor who gets it for $45k tomorrow with more than $400 cash flow per month.
For more tips and information, check out LandChasers.com.
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