No problems at all with wanting property deals. … except that this is exactly what property investment companies what you to say. Why because they don’t want to be drawn into how really successful property investors invest.
So what’s the difference… Deal hunting is bad, having a strategy that meets the market and knowing the rules that apply to your game. So how do you get to know when they are trying to sell you a deal…
Watch the video and find out the one telltale thing that shows the difference between the two types of property salespeople.
Hey, guys. Property Search… Think Gladfish. I’m Brett Alegre-Wood, and this is Property Rant.
Today, the question is…we get this a lot from investors where they say, “I only want to look at deals. I don’t want to talk about anything else. I just want to look at deals.” And you know what the interesting thing is? I have no problem with that. Absolutely no problem with that, providing that you are a professional investor. You’re a numbers investor. You’ve got an existing portfolio. You’ve got a very clear strategy. You know the rules of the game. And if all those things are there, then absolutely, let’s talk about deals because you’ve already gone through all that other stuff.
But if you’re not 100% certain on all that stuff, then I suggest you take a step back and you look at the process that we go through before we pitch you deals. Now, the market out there is going to pitch you deal after deal after deal after deal. It’s going to train you to think, “Just look at the deal. Just look at the deal. Just look at the deal.” And that, for me, is a massive mistake.
It’s a massive mistake because most of these deals are packaged up to look like they’re fantastic when the reality is they’re rather miserable. And I see this with investments all the time, and I get it. My sales guys in my team, they will send me stuff and say, “Why aren’t we doing this? Can we do this? Can we look at this investment?” And then I’ll go and I’ll do my research, my detailed research take, my methodical steps, how I do things, and then I’ll come back to them and say, “Hey, but what about this? And what about that? And what about that? And what about that?” And when I start perusing the questions that I would ask, all of a sudden now, they’re like, “Oh, I never thought about that, actually.” And we jump on the phone and we’ll do secret…it’s not Secret Santas. We’ll do secret calls where we’ll call and find out those information. It’s amazing how when you start asking some detailed questions and you start showing some competency how that deal starts to fold a bit. And a lot of times, that salesperson won’t call you back because they realize that you know more than they do and that they were just pitching you a deal, and unfortunately, that deal wasn’t that good.
Certainly not as good as it first started out to be. So, the key here, if you want to look for deals, and you just want to look for deals, fine. But make sure you’ve got all that stuff. The strategy, you understand the market, that you’re educated, that your emotions are in check, all these sort of things. If they’re not, then take a little bit of time. And we’re talking two or three hours on the phone, and not just in one hit.
Over time, answering your questions, taking it through the process that we take you through because you’ll come out the other end and you’ll very quickly be able to identify, “That is a deal. That’s not. And the reason that’s not a deal is because when I ask this question, this question, this question, they can’t answer that, or the answers are inadequate.” And the great thing is, very quickly, you’ll sort the wheat from the chaff, and all of a sudden, you’ll become a numbers investor. And only then, when you’ve got all this stuff, the strategy and the market, all that sorted, then you can start adding properties or deals or investments, whatever you want to call them, to your portfolio.
And now, your portfolio isn’t just a shotgun approach. It’s weighed. It’s measured. It’s market-proof. It’s still going to be affected by the market, but all these things are taken into account and you can move forward with much more certainty. And I can tell you it makes such a difference to lead with that strategy and structure and that market knowledge at the front end, and then look at deals, properties, whatever you want to call them.
When you do it the other way round, or in fact, you don’t do the first bit at all, that’s when wishy-washy all over the shop. You don’t know where your portfolio is. You don’t know what’s performing and what’s not. And in actual fact, one change in the market, you’ve got no idea what to do. And we see this all the time with investors that come to us from other companies that realistically they were just pitching them deal after deal after deal.
And this is my definition, How can you tell a company like ours and a company and another company? If in your first call to them, they pitch you a deal, then you know what their real motivation is. You know what their real motivation is, and then be aware of that. Look, I’ve got no problem with them pitching deals on the first phone call, but the reality is that normally means that they don’t really care about you long term, about your portfolio growing.
So be aware of that, and obviously, take steps to overcome that or avoid that. All right, guys. Have a great day. Live with passion