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There are lots of things investors do well when deciding what to purchase, what to sell, how much to pay, etc.

What is not seen is our natural biases when we invest. These biases result in less than optimal outcomes, and they are just a part of the make up of each investor… how we see the world.

So I will point out a few to see if this fits you. ( I definitely have a few.)

1. Buy an investment too soon.
2. See too late.
3. Have a fixed point in our mind of what we should not pay over, or sell for under. This is okay if it is many thousands of dollars, but if it is only a couple hundred – not a good idea.
4. Not hold investment long enough, cash out too early.
5. Improve the property too much for the neighborhood or tenants who will occupy it.
6. Buy investments that need too much work. The investor feels like they have to contribute to the investment, so they buy something that needs a lot of work, when they could have bought something with little or no work for the same price.
7. Invest in the underdog. Buy properties that have some issue believing that you can fix them and make them perform well, when they have issues inherent to them.
8. Buy too luxurious. Pay to much for a great property, but it is a buy on pride, not on numbers.
9. Buy class A in Class D area.
10. Move through process too quickly and don’t do the right analysis or enough analysis. Goes right along with…
11. Follow your gut. Buy investment because it feels good without any due diligence.
12. Want everything perfect before you buy. Equity, Cash Flow, Right Area, must all be perfect. Goes right along with…
13. Wanting to squeeze more out of the seller before close. You have a good deal, but want something more before close or you wont close the deal.
14. Think the market is going up, anything I buy will work. Buy in C & D areas or problem properties thinking the market will make up for the shortfalls of the investment.
15. Thinking that your skill or wit will overcome whatever problems exist.
16. You can just throw money at it. That will solve it. Right?
17. Move too fast. Variant 1 – want everything done too fast to get it done right. Variant 2 – buy too soon in the market (not waiting for the right time). They are ahead in time.
18. Impatient. Want it done now. Have trouble waiting. Create problems for themselves by not being able to work within other’s timeframes.
19. ??

These are food for thought. Which biases do you unconsciously have that are blocking you from buying highest quality investments.

Good Luck!

revised 4/15/21