Hello,
How do you help investors overcome paralysis of analysis?
Today I was in touch with a property scout, and he said he was transitioning to wholesaleing because many investors won’t commit to a deal due to paralysis of analysis. They want everything to be perfect, he said. Unfortunately, life isn’t perfect.
What to do?
Antonia
Well, it depends on who is right…
Your friend could be bringing in not so good deals, and investors turning them down because they see problem with the deals. Or… your friend is networking with the wrong investors, or wanna be investors.
How do you solve it? you make sure your numbers are good, and you find serious investors with experience.
Fadi is correct! You need to know who you’re dealing with?
Also, you need to give investors what they want.
If they are looking for properties 30% under fair market value with minor repairs…
Don’t bring them a 20% under fair market value home in a nice market with no or minor repairs.
That isn’t what they want. I learned this the hard way. After being told, “No Lamar, that’s not what I’m looking for because of this or that… so many times.”
I decided to wait until I had the perfect property that fit there criteria. Also, I utilized multiple investors, so I could have a range of different likes or dislikes. That way when I looked for properties I had more options for cherry picking.
Tell your friend to identify what these investors are really about and if they’re serious, then give them what they want.
If he is transition TO wholesaling what was he doing before?
I get this a lot myself, lots of new investors ponder a deal then get upset when it sold out from under them. You just have to nudge them firmly yet gently into making a decision, and be sincere when you explain to them there is no such thing as a perfect deal. I tell them that I have never seen one in the 21 yrs in Real Estate.
If you practice that advice you will have a good list of investors in no time. The tire kickers will just run off because of fear.