1. Know your numbers. You need to develop the skill to evaluate a deal quickly against your own criteria such as ROI, Gross Yield etc.
2. Don’t get emotionally attached. If you lose a deal you won’t stay down and disappointed (you don’t want to miss the next opportunity)
3. Become a master juggler. Have multiple deals to consider at the same time, knowing that they won’t all land.
4. Have layers to the deal. A decision to proceed with a deal can’t be based solely on the most optimistic outcome playing out. You need the deal to work on the base case and then have additional opportunities that make it even better if they come off.
5. Be clear about the audience. Be clear on the kind of properties/sites that meet your range of criteria, and you know the input activity required to uncover the kind of deals you seek.
6. Failing fast is good. Getting to a no decision on a potential deal should be a mini victory – it refines your analysis skills, validates what you really want from a deal and get you a step closer to the good deals.
7. Have s system. Working to a well designed system for your pipeline is key and within that keeping a record of your deals. You will shortlist and analyse a lot of deals but you never know, one may just come back round and present an opportunity to acquire cheaper/or create more value than you previously expected.
It’s not that you’re only as good as your last deal, it’s more that you’re only as good as your deal flow!
As I said at the start, we are currently processing two large portfolio transactions before the end of June and have room for a small number of investors that want a great return on their investment so reach out to find out more information.