work, the student just didn’t see it for what it really SL: I agree. And probably her No. 1 mistake was
represented. The price was excellent, and the seller not asking for help. That’s what mentors are for.
had already dropped the price substantially after just Everyone messes up at one point or another, but
one phone call. Yet the student chose to view this as having someone else looking over your shoulder
a discount deal, and she began haggling to reduce
to offer some much needed advice can help mini-
the price even further. Research and the figures
mize your mistakes. It’s pointless to try doing these
should have signaled loud and clear that she had
deals all by yourself when others can steer you clear
already secured a great price.
of the trouble spots — spots they may have already
At another level, the student also fretted over
experienced in the past.
the remaining 10 percent of the financing that would
have to be located — a worry that was unnecessary. GW: What would you have advised?
Under the circumstances, and of course with the
SL: First, you need to get a contract signed right way
property itself as security, the student stood an
to control the property while financing is arranged.
excellent chance of approaching the seller with a
request to provide short-term financing for the
Not doing that on this deal enabled another investor
remaining portion. But for some inexplicable
to come in and snatch up the property. Even if the
reason, she tried pressing the seller to take on
student had gotten cold feet or had been unable to
50 percent of the financing, an angle that is hardly
locate the remaining 10 percent of the financing, the
ever likely to succeed with an elderly seller who is
contract could have been assigned to someone else
looking to cash in one of his long-term investments.
and provided a nice little profit in that way.
The seller balked at the student’s discounting
Second – and I can’t stress this enough — I would
attempts and her requests for financing. While she
advise all beginning investors to find an advisor or
dithered and fretted, pondering her options, someone
mentor they trust. Run your deals and decisions by a
else stepped in and snapped up the deal.
more experienced investor first. Doing so could save
you a lot of trouble or help you make a lot of money.
GW: That’s too bad, especially considering all the Either outcome is a win.
effort expended. Amy Detwiler can be reached at
amy-detwiler@earthlink.net
growingwealthmag.com I Growing Wealth I July 08 I 39
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