Post 3 - When Everything Goes Wrong…
Every investment I looked at was with a plan. This is the CPI in me ?? That you redirect any information I collect to a business plan in Excel, Both in real estate and in life in general. As an addict to excels and financial strategies, I built a profitability file for rent deals.
This file has the known parameters such as the management fee, property tax, etc. and next to them there are the parameters that are uncertain and I have no control over them - an unexpected deviation from the renovation budget, vacancy, repairs, etc. The file branches with sensitivity analyzes for 3 natural conditions : The most reasonable, excellent and terrible.
I have decided that the right rule for me is to enter into a transaction only if my ability to hedge the risks allows the business plan to make sense even in the most terrible of situations.
But what if something happens that we didn't watch in the business plan?
What if at the beginning of the renovation, your contractor disappeared?
Then, miraculously, all the other contractors who gave bids are busy, and every additional contractor gives a bid at a price no less than double the original bid (!) Contractor, after contractor, after contractor... and time passes and bills are paid for the property ⏳, Phone after phone, after phone sounds familiar? ??
You can get upset, despair, stress, give up and compromise on an unsuitable contractor, focus angrily on the same contractor who disappeared… It is possible ..
Or you can think of what actions and thoughts advance me. Whatever doesn't advance me, I'll put aside!
and then, Continue to look for solutions and meet a cannon on the road, which begins the renovation and goes far beyond that, and this is just the beginning of a new business and social relationship.
and then, Also realize that the first contractor gone could have made me lose, had I not worked diligently and persistently to find another solution.
and then, You get a sms from the contractor who apologizes for being gone, and a number who fell in the bath, banging his head Temporarily lost memory And since then he is in the hospital and therefore was not available….??
And what if your personal life changes so suddenly that you are faced with decisions, situations, feelings, and challenges that you have not seen in your life plan?
One can think why this is happening to me, stop doing it, whip myself with thoughts of "why didn't I act differently"? Get angry at the world and at yourself.
Or you can fall because it's natural to fall when Plan A goes awry, and then Establish and produce Plan B and Plan C and Plan D
and then, Understand thatNot what happens to me hurts me, but my reaction to what happens to me hurts me.
וThen, Decide thatClick here to Managing my life and my investments! I decide what they will look like. Neither the vanishing contractor nor anything else will happen. Only my reactions to what is happening will change my return from real estate and life!
What do you think? Can our conduct help us to increase return on investment? Write to me what you think.
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