Today I’m talking about business mistakes I’ve made, and how I’ve learned from them.
Don’t be Over-eager
The biggest business mistake that I’ve made is that I was very eager back in the day. I would fall for a lot of tricks by these sleazy, snake-oil salesman. I would commit to certain individuals very quickly, and I really never did my due diligence researching business partners or other partners I was looking to invest with. I’ve jumped too quickly into bed, into business relationships, into a partnership—and I had a particular real estate transaction with someone who ended up being a bad apple. I lost a lot of money.
Nowadays I’m a lot different, but just because you touch a hot stove and burn your hand does not mean you should stop cooking. You still have to keep cooking, because you have to survive. You have to eat. I’m much more diligent now, and I’m much more cautious. I really spend time getting to know someone before I do business with them and before I do any kind of transaction with them.
Put in the Time
A question that I always like to ask—and I advise all of you real estate investors out there to use no matter what kind of strategy you’re looking at—is: Are you willing to wait six, nine, or 12 months getting to know me and building a relationship with me before doing any business together?
I say this because it is very important that you build a strong foundation for the long term. I’ve said it before, and I’ll say it again, real estate is not a one-night stand. It’s a marriage. You have to get to know each other and like each other; you have to respect each other; and you have to have the same big-picture and vision in mind for the…