02-22-18 If a deal is great, other people will…
This morning as I was looking for inspiration to share in today's email I came across a post in a Facebook group that was a "lessons learned" post by someone at the end of working through their first rehab.
One particular point stuck out at me: "Don't use my own money - if the deal is great other people will invest"
Here's a list of reasons why I think that statement is profound regardless of where you source your funds from:
- 1Risk management: when you are using "OPM" there is always going to be some level of underwriting and independent due diligence involved. The more professional the source of OPM the more scrutiny you'll receive. More scrutiny is only a bad thing if you are missing the mark and insist on continuing to drink your own Kool-Aid.
- 2Keep turning the crank: have you ever gone through a dry spell where things just weren't happening and then all of the sudden opportunities seemingly fall from the sky one after another? If you are relying on your own internal funding sources you limit your ability to take advantage when opportunity presents itself faster than expected.
- 3Relationship building: you see the inside of your deals and maybe get some fodder from other investors you meet at the local REIA. The people on your powerteam specialize in what they do and they do it over and over across a spectrum of clients. That gives them the ability to see the realities across many deals and with different variables. This in turn means they are a great resource when you come up short in some area and need some creative solutions.
Those were the top three that I came up with. I'm sure more will come to me and this might morph into a blog post at some point.
In the meantime let me know what you think and if I missed one that was so blatantly obvious it should have replaced the top three that came to me above.
Afraid you're drinking some of your own Kook-Aid on a deal? Need a little extra scrutiny? Give me a call at 833-FUNDYES and we'll walk through it with a fresh set of eyes.