The appeal of real estate investing for many people is the idea of being independent and making deals and working when they choose to work. It can be a great perk to be self-employed and to have the ability to set your own schedule. But that is only a half truth about the business. You can choose when you work to a point but there are times when you just have to drop what you are doing and complete a deal, or you will lose it. Any time you are working with another person, a seller, an investor or even a trade contractor, there will always be other schedules that you will need to consider and sometimes work to accommodate.
As you complete more investment deals you will find that you are developing a pool of trusted resources and service providers. These are the people that you turn to for advice, information, services or maybe even funding. These are the people who make what you do for a living possible and you rely on them for a part of all of your deals.
So what do you do when you have a seller who is jumping at the chance to accept your offer but he or she insists that you close very quickly? You make a few quick calls to your home inspector, your hard money broker and maybe your realtor. But what happens when one of your trusted resources is not available? You don’t want to have to pass on a great deal but you also don’t want to buy a property that hasn’t been inspected. It could kill the deal to wait or it could kill you financially to buy a property with no inspection only to find out that the plumbing is trashed, the roof leaks and the foundation is crumbling. The secret is that you always need to have a backup plan and a plan to back up your backup plan.
In this world, anything that is necessary to sustain life, or life as we know it and love it, needs to be redundant. You can’t have just one way to accomplish a task or just one person to turn to who will help you accomplish a task. You might have a favorite home inspector and he might do most of your work, but it is irresponsible not to do some work with another person. It is just good business to have a backup resource. If your main service provider can’t live with that then they either need to guarantee 24/7 service or you need to find another main service provider. You can’t risk your potential business success on some who has gotten hurt feelings about not being your only resource. Most professionals will understand and even admit that they too have back up plans for parts of their business.
The point is that you really never control everything and in reality, you control very little. But what you do control is how many options, contingencies and redundancies you build into your business plan. Never let money slide through your fingers because someone else can’t conform to a schedule on your behalf.
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