Of course, this is a question we ask ourselves alot, but it ultimately is a question that only YOU can answer.
A coaching student was doing analysis on a deal he was considering buying and he asked me if he should buy it. Which led me to outlining a few guiding principles for deciding whether or not to move forward on doing a deal:
1. Do the numbers make sense?
This of course assumes we are working with accurate numbers (purchase price,rehab, ARV, financing costs, etc)
*This also takes into account other factors such as Market Conditions, Pulse, Inventory, Days on Market, etc that help to ‘tell the story’
2. Does the deal ‘Excite’ me?
Mainly Financially, but also other areas such as creatively and strategically
*As entrepreneurs, its critical we are in alignment with what we are doing and able to give ‘Hell Yes’ responses to projects we take on. If not, we will typically find ourselves burned out, or more likely to lose focus and our edge
3. Is this deal viable for me now?
Meaning, Do I have the MINDSET, TIME, a legitimate FINANCING source and team to complete rehab
*Don’t talk yourself out of this one. It is ALMOST always feasible to raise money and leverage skillets to get things done when the desire is strong enough.
4. What happens IF we answer YES to 1-3 and we don’t do the deal?
This is when we have to take a good hard look in the mirror and ask ourself the simple question, “WHY NOT?”
*Because, when a deal makes sense, the typical reason investors back out is from Fear. And when we are making decisions based on fear, this typically means we have not been DOING THE WORK to equip our Mindset & Skillset to seize an opportunity when it arises. AND if we haven’t been doing the work to put ourselves in position to take advantage of the opportunity, go back to #2 and find out WHY you are not excited with your current investment opportunity.
**AND if this problem continues to persist, you may be in the wrong business, OR, private message me and we can see if you just need to get a few skill set issues worked out to give you the confidence you need to move forward.