I was recently asked, “what was your most challenging deal and what did you learn from it?”
My response: “Isn’t every deal a challenge?” Now, there’s a valuable lesson!
If you don’t want to be surprised when you’re in the middle of a deal, please expect to be surprised. Surprises happen with pretty much every-single-real-estate-deal. And, they’re all different so, no matter how prepared you think you are – surprise! – something unexpected pops up.
I give this warning because crap always happens and, when it does, investors think they’re doing something wrong or “this real estate thing just doesn’t work.” It does work, but you do need to know what you’re doing (education) and you need to have a mindset that you’ll keep going even when the crap hits.
Know that you won’t be able to see everything going in.
- Repair costs will be higher than you budget for.
- Closings will take longer than expected.
- You’ll have to make unexpected concessions to get the property closed.
- Contractors will disappoint.
- Don’t even get me started on what can trip you up on the funding side.
But, if you buy right, it’s all worth it. Just determine not to get stopped. Keep jumping over the hurdles one at a time. Eventually, you’ll find yourself crossing the finish line with a satisfied smile and a check.
What challenge did you overcome?