To do creative deals you need to be a “Deal Maker” , but to make money long term from property you need to be a “Manager”… In this episode we find out which one you are, and how to make up for the one you’re not.
The Deal Maker
This is somebody who’s creative in property or real estate investing, somebody who finds a deal and puts the deal together, gets the money from here, the seller, the lawyer, the accountant and makes a transaction happen. It’s a lot of fun but you’ve got to be a certain type of person to do that, you need to have a little bit of an aggressive streak. You’ve got to be willing to confront people, to sell your idea to people, to push people on what you want them to do and of course not everyone has that strength but if you have that strength, you might be a great deal maker.
What happens if you don’t have those skills and attributes? Should you not attempt to do a creative deal? Of course not, anyone can do creative deals. What I’m saying is that if you find that you’re a better manager or you have better management skills, you like dealing with that side of things, the accounting, keeping track of what’s going on, moving tenants in, moving tenants out, then that’s a very important skill as well.
Success is knowing what you’re good at
The Manager/Deal Maker dynamic works well and its beneficial to partner with somebody else who has a complementary skill set to yours. If you’re a good deal maker, chances are you’ll be a bad manager and if you’re a very good manager, chances are you’re not a very good deal maker which means that you could find someone with complementary skills to partner with.
I actually thought I was good at both until I learned through experience that I wasn’t. I’m actually a very good deal maker, I could make all kinds of creative things happen, I’m a very bad manager. I can do it, but I have to really push myself, doing deals on the other hand, that comes naturally to me, I’m always trying to create something and make something happen.
How do you know which one you are?
I would say that if you’re naturally an outgoing person, someone likes to go and meet people and shake hands or jumps off the walls at parties then chances are you’re a very good deal maker.
If you’re the person who likes to be a bit more reserved and prefer people come and talk to you rather then you going to talk to them, then chances are you’re going to be a good property manager. That’s not cast in stone, that’s just my experience.
Success in life is about understanding yourself.
This is so important it’s worth repeating. The best advice I’ve ever had was to find what you’re good at, find out what your flow is and then be in your flow. If you know there are things that are not in your flow, find other people to do them for you.
So, if you’re thinking to yourself that you couldn’t go and do a creative deal that’s fine, there’s someone out there who can, they would be a good partner for you, and these are good relationships to cultivate in life and in business.
Once again, very important, understand yourself and you’re going to make more money long term.