Don’t Be an Emotional Buyer
Today I want to talk about the decisions that we all make when we are buying an investment property. We all make decisions when buying that are based on emotion.
Yes, we all have to eat, sleep, be clothed and have shelter but stick with me on this for a minute. Just about everything that you consume, buy, purchase or already own you got by making an emotional decision.
A friend of yours may have told you about this wonderful product, so you bought it. Or, you saw an add in a magazine, tv commercial, billboard, online or some other form of advertising. You see, you made that decision to buy based on how it made you feel.
If the advertisement made you feel bad you probably wouldn’t have bought it. If your friend said this is horrible you would steer clear of it. For the most part our buying decisions are made on emotion or impulse.
When you are buying an investment, any investment you need to train yourself to not get emotionally attached. You need to learn how and when to walk away… no matter what you have invested.
The best way to learn how to do this is on the front end. When buying a foreclosure or distressed investment property it is IMPERATIVE that you stick to the numbers. Nothing can get you into trouble faster than the thought of “I love this cute little house, I gotta have it.”
Remember, this property is for you to make money on. It does not matter whether you like it, what matters is what the numbers say.
I was speaking with one of my clients today and he was asking me this exact question. He wanted to know how it is that I cut through all of the clutter and decide on which property to buy.
My answer to him, and to you, is quite simple…pay attention to the numbers ONLY and everything else will fall into place. You will make money from day one…and that is what it is all about.
When I say numbers I am referring to what the property costs vs. what I can resell it for. Or, what the property costs vs. what I can rent it for and therefore what my cash on cash or internal rate of return is.
I am also referring to the numbers (if it is a fix/flip) of days on market, how many competing listings there are, if the neighborhood is selling/renting well.
All of these things are numbers. Remember the old adage…You make your money on the Buy, NOT on the Sale. I believe in this wholeheartedly and cannot recommend enough that you do your due diligence and spend your time on the front end…studying the numbers PRIOR to buying.
If you are willing to stick to the numbers your emotional buying decisions will be NO where to be found. This one small thing can make a HUGE difference in your income.
To Your Success and Nothing Less.
Profiting From Distressed Real Estate
This site was developed with the sole intent of teaching, training and providing unique usable content on the subject of foreclosure investing.
My name is Andy Werner and I have been buying foreclosures for over 10 years. I have literally bought and sold thousands of properties. I do not say this to toot my own horn, but rather to demonstrate my experience.
I have enjoyed buying property low and selling it high. I have enjoyed buying property low and holding for rentals. I have enjoyed buying property low and “wholesaling” to other investors so that they could make a profit.
I have been an “in the trenches” investor for all of these 10+ years. I continue to buy and sell property on a daily basis. The information that I will be adding regularly to this site will not be based on what worked “yesterday”. Rather, it will be useful, relevant information that is working NOW!
Real Estate investing, like any other type of investing is constantly changing. What worked yesterday does not work today. What works today most likely will not work tomorrow. Its important when seeking information about buying and selling foreclosures, or any other type of distressed property, that the information that you are getting is from someone who is “in the trenches”. I cannot stress this enough…you need an experienced authority who not only has been there and done that but who is still DOING.
It is my sincere hope that you will come back to the site often. I LOVE investing in foreclosures. It has been my passion ever since I began doing it. I love taking something that is ugly and making it wonderful again. It is not only great for society and the community but it can be EXTREMELY lucrative for you too.
I want to teach you how to reap some of those profits for yourself. To your success, and nothing less…
Andy