Over decades I’ve attempted to serve more than 2000 millionaires. Many are the proverbial “millionaire next door.” They are firefighters, history teachers and other “ordinary” people who didn’t start out as millionaires. Instead, they trimmed their lifestyle so they had money to invest. Then they selected an advisor who would help them achieve their goals.
I called them “ordinary,” but they are not. They are highly disciplined. They learn from most transactions. And we learned a lot from them. Our team has developed ten success enhancing suggestions we learned serving those millionaires. Some of these realities my sound blunt, but you’ll probably do better if you act as if they are true.
1. Successful people learn from unpleasant truth. They are more interested in getting a great result, than feeling good about what may be false assumptions or ineffective conduct or sloppy thinking.
2. In a real estate purchase contract, the seller has the obligation to sell for the contract price. But the buyer has the opportunity to buy for that price. The seller cannot cancel if a higher offer comes in. The buyer can decline essentially for any reason within the contract timelines. That gives the buyer dramatically more options to explore.
3. There are usually at least two great options on the market at any time. Try to find them.
4. The other side has the right to be confused, conflicted, misinformed, rude, unfair, or wrong. Our job is not to teach them. Instead, the relevant criterion is: can this transaction be profitable for our side. This perspective enables you to recognize the other side’s blunder as an opportunity for you.
5. Some cautious people hope to limit risk and avoid a poor choice by researching a property extensively before putting the property in escrow. They create unnecessary risk which other, more savvy, investors exploit. Smarter buyers tie up the property quickly and then investigate. Once a competitor has the asset in escrow, your analysis is irrelevant. (See #2)
6. The buyer is acquiring the property, the sticks, bricks, stucco, windows, and roof. The buyer has no obligation to keep the seller’s policies, management, or blunders. (See #4)
7. Successful buyers buy. Decide comes the root word meaning “cut off.” They know they will pass on some appealing options. They have the discipline to pursue an option that moves them closer to their goal. They keep their eyes on the prize and avoid chasing other bright, shiny objects.
8. Buyers win when they close. There is no prize for finding good opportunities and fumbling them. If you love research and hate to decide, then work as a researcher for a buyer.
9. No one is a mind reader. Speculating, without information, about others’ options and motivation is probably a waste of your time.
10. If you think your expert’s expertise, information, and insight is not better than your own, fire them. If you don’t trust your expert, you’re wasting your time and theirs. You are blowing opportunities by second-guessing your expert.
What success enhancing suggestions would you add to this list?
Terry Moore, CCIM, is the author of Building Legacy Wealth: How to Build Wealth and Live a Life Worth Imitating. Read his “Welcome to My Blog.”