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Investors overlooking need for mentors

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guest | 15 Mar 2012, 01:12 PM Agree 0

Many struggle to be great real estate investors yet find themselves achieving results that barely satisfy or resemble what they wanted to achieve. What they fail to realize it that except for a few small but key decisions along the entire path, the result could have been very successful. Enter the mentor to be there at these critical moments. There is free information on how to analyze the economic fundamentals of an area, determine the profit/loss of a particular property and how to execute most strategies.   What is not easily available is the wisdom and timing that a successful mentor can bring to the deal. The following are a few spots where a mentor shines. A mentor can help you establish the right perception A transaction takes place when the other side’s perception of the value of what you have to offer is higher or equal to the price you are asking. Your mentor can identify what the true currencies are for the other party and help you structure your offer to match their perceived value. This will reduce over explanation and the stress that comes from misunderstanding. A mentor can help you manage your emotions People tend not to look at the big picture. A mentor will allow you to look at the big picture to determine all the elements, and determine all the ramifications. They will help you organize your thoughts on what you want to say into benefits for the listener. They will show you how to manage your emotions by turning it into controlled passion. I have purchased houses at deep discounts because I had a greater passion and vision for the property than the seller. I have sold houses for greater profits because I was able to share my passion and vision of the property with the buyer. A mentor can teach you to be mindful of your assumptions When it comes to assumptions, it is natural for people to feel that they are in a weaker position and that the other party has a stronger hand. Belief of a weaker hand will be translated in your gestures, looks, actions and words. The mentor will cause you to realize that the other party has the same assumption and how to position yourself on the high ground. In war and peace, whoever holds the high ground usually wins and it is the same for negotiations. A mentor can teach you how to massage the timeline Here is an example of a mentor massaging the timeline. A property seller represented by a mentor needed to sell in 30 days. During communication with the buyer, it became evident that the buyers purchase deadline was absolutely no less than 60 days. It’s a fact that whoever has the more relaxed timeline usually wins in a negotiation. So the mentor projected the seller timeline to be no sooner than 120 days which was unacceptable to the buyer. The seller was then able to offer an option that if sold sooner than 120 days, it would have to be within 30 days and a few concessions would have to be thrown in for the major inconvenience. A mentor knows the rules of the game but also how to play.   As you can see, the mentor was instrumental with perception, implementation, assumptions and timeline. These soft skills are as important as the economic fundamentals and the property analysis. This is where a mentor shines and can make all the difference on satisfying what you wanted to achieve.
  • Todd Zimmer | 17 Mar 2012, 04:26 PM Agree 0
    Sean has some really good points. I would add that if you have a fantastic and experienced realtor, he or she could be the mentor you need. Your lawyer, or other members of your team of real estate professionals can also help mentor and give great advice. So I would say when selecting your team, reach for the top and work with the best you can connect with. Mentors will make a huge difference accelerating in the learning curve.
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