Rule #1: Always Remain in Control
What I am referring to is being in control of all aspects of the deal at all times. Whenever someone else controlled the flow and function of the transaction, investors and I always lost. Once we lost that control, we never got it back. It’s like playing pool against a professional. Once you miss a shot, the pro is very likely to “run the table” and you never get another shot.
Don’t miss a shot. Don’t lose a deal. Don’t leave money and profit on the other side of the hud sheet.
Educate yourself so that you understand where you can lose control throughout all aspects of the deal and plan accordingly. When you send off your first Letter of Intent, you have to anticipate and be ready for all potential responses and then know exactly what your reaction and response will be to the seller.
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When you review a Purchase and Sale contract, you need to understand why the seller proposed it the way they did and what that could mean to you throughout the rest of the acquisition process. It’s a chess match. This rule must permeate the entire process from start to finish.
TIP: I mentor taught me to draft the termination of the contract as soon as I enter into the contract just in case. Always be in control.
The more experienced I have become in my investing career, the easier it is for me to walk away from people, deals, and partners that give me that feeling that goes against my intuition. If it doesn’t feel right now, it will not feel right a year from you when you are the only one having to solve the problems on the property that you missed because you looked the other way. Listen to your inner voice and I believe that you will be surprised at its accuracy.