![]() Investors want to hear the risks involved with you deal. That includes you acknowledging the potential risks and being upfront about them because you have grounded projections showing this is a profitable opportunity and you also have a plan in place to mitigate any issues. If you’re investing in a solid deal and you have built a proper network, you should have confidence in your deal. This mindset is the wrong way to approach things. The point is that most people are afraid of letting an investor know about the downsides of their deal because they think it will scare them away. I’m not trying to say that you should focus heavily on everything that’s wrong about your property. They don’t want a low-level salesperson approach where you are desperately focusing on all the positives of your deal and covering up all the negatives. They expect you to directly present the risks and downsides involved in your investment. Accredited investors that have found their way to alternative passive investments are extremely savvy and perceptive. ![]() If you’re syndicating real estate purchases with several or many investors involved, all of the points we’ve outlined so far are even more true. Build a smarter and more advanced audience and following by giving genuine, honest information about your company. You don’t have to be the dishonest guy driving a rented Ferrari to gain a following. I actually think this habit held my business back when we were starting out because doing business in today’s world inevitably involves a heavy marketing presence with a social media component. Growing up in the early days of social media, I learned to avoid it because of all the drawbacks we’re already all to familiar with. The catch is that by putting you and your business out there for more eyes to see, you’ll be under increased scrutiny and more people will be waiting in the wings to react angrily if someone uncovers you being dishonest or unprofessional. This is one of the important stepping stones to establishing a thriving business. People can visit your website or social media and see your activity. This will help you establish instant credibility when you network. One of the things you need to do for your real estate business is build a brand. Here are a few reasons I’ve learned over the course of my career why honesty will pay dividends in real estate: In my experience, some of the most successful developers and real estate investors I’ve met were also some of the most straightforward and honest people I’ve ever met. ![]() The media makes it seem that the business world is full of evil people stomping on others to achieve their goals. On average, the honest businessperson will have more success over the course of their career as opposed to their dishonest counterparts. That’s why your reputation is so important. There is too much money at stake and too much to lose. Real estate transactions involve huge sums of money and the industry in general is full of people who have no time for games. What I think most people don’t realize is that a dishonest person will usually get themselves into trouble in the business world. There are definitely people like that who have achieved financial success. Charlie Munger, Warren Buffet’s partner and a beloved fountain of business and life wisdom once said “Tell the truth, tell it fully, tell it fast.” We live in a cynical world where our perceptions of the most wealthy and powerful individuals are inevitably those who lie, cheat, and steal their way to the top.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |