Follow me as I share my knowledge learned investing in Michigan real estate since 2006, tips, tricks, insights and thoughts. The Borland Group. Metro Detroit Real Estate Investor .
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Friday, March 29, 2019
The importance of skin
This week I want to bring you a simple yet effective core philosophy that has been the backbone to my business and has served me very well over the years. That philosophy is “Never do a deal you are not fully, 100% prepared to close on yourself” let that be your guide. There has never been a deal yet that I do or put out that I am not prepared to close on 100% myself whether someone takes the deal, invest in the deal alongside us or not. And key here is to be prepared for just that as it happens.
In fact, as I write this post now there are 3 deals people did not jump on when I offered them and all three we closed on ourselves and are under contract to close with buyers. A flip netting us $28k , another flip netting us $23k and a commercial asset many investors said no that we just placed under contract to resell landing $2.5M in net income in 15 months! It happens. It happens for several reasons 1) every investor just like you and me has their own set of criteria good deal or not if it doesn't fall within it they don't invest, good investors are disciplined and should never go outside what they know, most don't 2) the person you presented it to wasn't comfortable with you or 3) the person you presented it to thought different about your numbers i.e. renovation, resale cost etc. This happens often, its ok, every single individual looks at things differently and you are not here to educate them , you are here to simply present an opportunity if they like it and it makes sense great if not thats ok to.
By adopting this mindset over time people began to realize that you are committed to this and it builds character and most importantly trust. for example, people begin to realize that “when Dylan sends a deal out it's going to make money or he wouldn't be sending it out” Where does this become important 1) if you are a wholesaler trying to sell other investors properties or 2) if you are raising capital for anything.
Some benefits of adopting this mindset
You slow down and underwrite more conservatively, if you have to take it down yourself you want to make sure you are accurate.
Supports long term business, trust, and character
When people realize this philosophy in you, deals and investments move exponentially faster. I've had investors not even look at what I've sent, the pure fact I've sent it they take it as they know Dylan wouldn't put something out he wouldn't do
People see you have skin in the game and feel more comfortable
It allows you to detach from the outcome, which allows you to make better decisions about the deal.
When you DONT adapt this mindset :
When you don't have skin in the game or don't have this mindset you tend to not take the time to underwrite the deal as thoroughly as you should. When you don't have skin in the game you a detached from whether someone makes money on the deal or not. That is not good for anyone and you certainly won't be in the business for a long time.
Don't be the person who goes out and throws shit at the wall to see what sticks, there are a lot of people in this business that do that and you don't want that as your reputation. It's not about quantity as it is quality in this regards. Development instead the reputation of , when ________________ sends a deal out I can feel confident _____________ knows what they are doing and has taken the time. This creates far less resistance in your business and far fewer problems, deals happen fast and effortlessly and with good people.
What happens if you have this mindset but dont have the means to close? That's ok too, do everything in your power to figure it out and if in the end, you cannot find the means to close, take the hit, likely a lost emd and move on and try again, this time learning and adjusting and preparing better.
If you want to learn how to build a business and reputation that lasts in this space and ideals that will lead to flow vs resistance making life far more enjoyable than schedule a free 1 on 1 call with me and see if The Ultimate Real estate investing course is a good fit for you at www.Theuric Com you can get a free investor case study at vsl.theuric.com learning how to get your first investment property in 90 days or less.