Has this ever happened to you?
You set the price (perhaps for a wholesale deal) a little higher with the thought that you can always come down—you can always negotiate.
In the meantime, the property is sitting there costing you money… and that “extra” you thought you might get is eaten up in holding costs. Plus, the chance of an investor trying to talk you down in price is slim to none.
Well, this hits home with me because even I’m still guilty of fall into this tempting trap from time to time. :-/
So, I’m sharing this with you so you’ll learn from my mistakes.
Let’s say you’re wholesaling a house, and you could price it at $50k and make a quick $10 grand, but you push it up to $55k so you can stretch the dollars and try to make a smidge more profit.
But that backfires. A LOT, folks.
Because cash buyers will look at it and think: “Hmm, well that’s overpriced. And since the price isn’t right, I wonder what else is wrong with it. I’m passing.”
And most often, these buyers are not going to simply make a counteroffer. Nope. They’ll just say no and move on the next property that is priced right from the beginning.
Pro Tip: YOU should definitely make counteroffers. Since most investors don’t, when you do, you’ll get more deals. Plain and simple.
It’s also a bad idea to overprice just because of the time involved. You’ll end up sitting on that property, maybe for a full extra month… that’s valuable time that you could have been doing other deals… and profiting. Instead, you waste time and money, hoping for a little extra cash on an overpriced deal.
It’s just a bad idea all around. The little bit of potential extra cash just isn’t worth it.
Don’t get stuck in the overpriced temptation trap.
Know this: It’s better to make a fast nickel than a slow dime.
***** The power of focus
I’ve got a short and sweet yet powerful message today…
The power of singular focus.
Basically, we all need to stop chasing a dozen different things. Honestly, this is a good lesson for all of us—me included.
I mean, you’ve heard me say before that I’m easily tempted with the “bright and shiny objects.”
But those things pull your attention away from what you are really skilled at… and you’ll rabbit hole down into territory that you shouldn’t be in. You’ll get stretched too thin and nothing ends up getting done because you’re not good at all of those other things.
Not a good place to be. 🙁
But when you focus on what you’re best at and what you love to do—that’s the real path to success.
By not having focus, you’re losing money and time. The “opportunity cost” is pricey.
So, I encourage you, right now, to look at what you’re doing… is it necessary? Is it what you’re best at?
If not, scale back and simplify.
Stick to 1 thing… and have laser focus on that 1 thing.
Master that, and then eventually you can outsource it and scale it. When it can run without your involvement, then turn your attention to something else. And repeat.
Here’s what I mean…
I mastered wholesaling. Then I had my VA take it over. Deals happened without me.
So then I focused on lease options. Mastered. Outsourced.
Now I’m looking at land deals.
That’s how you should be operating your business: Keep it simple and focus.