The best way to invest in real estate is to avoid this critical mistake: self sabotage. I recently had an opportunity to read an article on self sabotage. I realized these so-called four “good” behaviors I thought were benefiting my real estate business were actually sabotaging the success of my company.
Does it surprise you to learn that your own actions could be sabotaging the success of your business without realizing it? I recently learned of a declassified US government document titled Simple Sabotage Field Manual. The document was created during World War II by Strategic Services. The purpose of the manual was to assist individuals working behind enemy lines within enemy institutions.
One particular section of this manual was dedicated to making organizations ineffective and inefficient. The plan was to take good behaviors to the extreme. As you read these tactics you may discover many of the strategies are familiar. You may also realize how these behaviors have resulted in very familiar outcomes that ultimately causes problems in your real estate business.
The best way to invest in real estate is to establish formal rules and procedures once your real estate business begins to grow right? The idea is for your employees to continue business is done correctly during times when you are unable to supervise. This smart policy approach invites sabotage. These smart policies, if being followed to the letter prevent employees from overriding these processes during times when these rules are not working.
The Solution: Build some leeway into your processes to build more effective processes.
We’ve all seen this problem within our government, not just our real estate business. The larger the committee the more complicated the decision-making will be. The best way to invest in real estate is to keep your key decision making process simple with a minimal number of decision makers. A good example of this is when you begin consulting with contractors. There will be times when you come across contractors who will want to get involved in the decision making and the more they feel they have free rein over your investment the more contractors who get involved in the decision making process the harder it will be to stay in control of the project.
The Solution: Make sure people understand exactly why they’re there and exactly what is expected of them.
This also relates to in many ways to your decision making. Beware, the person asking to reopen the decision may be simply unhappy that their opinion was overruled.
The Solution: Ask for new facts, if nothing has changed since the decision was made stick with your original decision.
The best way to invest in real estate is to be reasonable and avoid haste. Be mindful, although real estate is a stationary business the market isn’t. It is important be aware of the changing market and the individual issues you will face with each property. Remember haste makes waste but being overly cautious results in no action and missed opportunities.
The Solution: Be reasonable but not overly cautious. Ask for facts. It is important to understand as a real estate investor, the key to being successful is being resourceful and a problem solver. Focus on solutions not problems.