By April Crossley
Everybody wants to make money in real estate investing. It’s your business! Who wants to own a business that doesn’t make money? No one. I am convinced that the key to having a successful business is doing what is best for OTHERS.
Surprisingly, this business is not about YOU!
It’s mostly about helping sellers AND it is also about providing a good home for your end buyer when your flip is done. This year, a deal I had completed reinforced these lessons to me.
I purchased a property from a seller that had met with another investor prior to meeting with me. When I meet with a seller I try to give them multiple options for selling. I always give them the market value and a cash offer, along with some other options if they are applicable. I will take a look at the house, present my offers, and if they work for the seller… great.
If they don’t work for the seller…. That’s ok too! I just want the seller to do what they feel is best for them.
The seller accepted my cash offer and when we were signing the contract, she told me that I wasn’t the first investor she had to the house. She then explained how the first investor she met with tried to get her to sign a contract on the spot and was using high-pressure sales tactics to get her to sell to them.
She was disgusted.
The investor that looked at this house prior to me was not worried about helping the seller at all. They were clearly only thinking about what THEY wanted and how badly they wanted it. In turn, they lost out on a deal and left a seller thinking “all investors are like that.” Thankfully, I had the opportunity to change this sellers mind.
We flipped this house in less than 3 months and put it on the market to
re-sell. It was under contract in less than a week. The buyers told us at the settlement table that they had viewed a lot of “flipped houses.”
They were mostly disgusted by what they saw.
They said a lot of the homes were done terribly. The work was subpar. Thankfully, these buyers knew what they were looking at. Unfortunately, most buyers do not pay attention to detail on a home and end up buying a shoddy flip job.
Even more unfortunate is the fact that there are “flippers” out there that have a “burn and churn” mentality. They don’t think about the quality of work or their end-buyer at all. Their primary goal is ………surprise……..themselves. They try to get everything done as cheaply as possible so they can make as much money as possible. And it shows in their end product. The buyers of our property thanked us for putting out a quality product and knew they: “just had to have this house.”
This business is about helping sellers and providing quality homes to buyers. And it CAN be done while still making a profit. To me, the quality of my flips is more important than the quantity. Always be proud of what you put your company’s name on. If you wouldn’t love it and live in it, why would you expect someone else to? And if you don’t like high-pressure sales tactics, why would you expect someone to sell to you when you utilize them? This business is not about YOU.
April Crossley is a contributing instructor for www.propertymanagement.institute. View her course at April Crossley