Why A Little Patience Goes A Long Way
By Paul Esajian on May 20, 2016
Patience is not a quality that most real estate investors possess. We want things done as quickly as possible and with the least amount of resistance. While this characteristic helps get plenty of tasks accomplished there are times when it may actually hurt our business. By taking a step back every now and then and showing a little patience it helps us get the deals and contacts we thought were unattainable. Taking this leap of faith is never easy but essential if you want to grow your business. Here are five areas in your business where a little patience goes a long way.
- Recycling Old Deals. By squeezing just a handful of additional deals every year it can have a staggering impact on your bottom line. Instead of spending money for marketing you should look at some recent deals you have worked on. Most investors make the mistake of moving on from a deal once their offer is not accepted. By showing a little patience and following up in a few days or even a few weeks you will end up with more deals. A deal is never finished until the paperwork is signed at the closing table. There are many sellers who end up having issues with the offer they accept. Between financing troubles, appraisal issues and inspection problems there are many hurdles that could pop up before closing. By staying patient and following up you never know when a deal could fall on your lap. This is especially the case with distressed property sellers, most specifically banks. Having your first offer accepted is very rare regardless of who the seller is. Don’t run from deals that aren’t immediately accepted. A little patience will help these deals come your way.
- Marketing. If there is any area in your business where patience is essential it is with marketing. It doesn’t do you much good to spend money on marketing if you don’t give it a chance. Most marketing pieces will not have an impact until they are sent an average of six times. This means you need to have the financial means and the patience to wait this process out. There are many investors who send one or two letters and base the results from this small sample size. If you stop at this point you are not giving yourself a chance to reap the real benefits of your campaign. The first couple of mailings set you up for the success on the back end. Before you drop one letter in the mailbox you need to commit to having the patience to see the campaign through. There will be times when you question what you are doing but in the end you will be glad you stuck it out.
- Networking. Marketing and networking are very similar in their approach. Successful marketing typically happens if you have the patience to see the campaign out. With networking you can’t expect to have a lasting connection after your initial meeting. There is a process that you have to go through in building a relationship. We live in a day and age when where everything is sped up. We can find almost anything out on our phones in a matter of minutes. This is a great benefit most of the time but it also has increased our need for speed. With networking you need to slow down and not rush the issue. Someone you meet at a local networking club may not feel comfortable working with you until you have several conversations. There is often nothing you can say or do that will help speed this process along. The same is the case with people you meet at investment clubs. You need to have the patience to build the relationship over time. By doing this you have a much better chance of success when you do work together.
- Making Offers. The real estate business would be easy if every offer you made was accepted. A more realistic scenario is that you often need to go through several rounds of negotiating before this happens. You need to have the patience to embrace this process. It is human nature to want our first offer accepted as quickly as possible. When this doesn’t happen there is a feeling of frustration and uneasiness. You need to have the patience to volley back and forth until you get the deal you want. If this doesn’t happen you should be able to pass and wait for the next deal. Never accepted a deal you are not fully comfortable with. Have the patience to negotiate the best possible deal for you.
- New Deals. One of the downfalls for many novice investors is pursing every new property that hits the market. They may not have closed a deal in a few weeks and desperately want to get going again. The reality is that not every new deal is a good fit for you and your business. By pursuing a deal that you are not 100% sold on it limits your ability to go after future deals. Additionally one bad deal can actually set your business back several months. As difficult as it may be you need to have the patience to walk away from deals that don’t love. It is much better to close fewer better deals every year than to take on risky deals just because they are only thing currently in your market.
There are few people who are good at being patient. By being patient in some areas of your business you will see that time can really equal money.