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Real estate for some scientifically explainable reasons is at the core of our physical existence as humans. Science and technology improvements have made growing crops in the air possible. When it comes to shelter and a domain for continued existence, real estate as we know it is still the real deal. And this will be so for a long time to come. This fundamental importance of real estate to our existence as humans makes it more of an asset that we approach with large doses of emotion.
Let me explain. Think about how happy it makes you feel having a piece of land or a home. Take a moment to think about the effect of losing your shelter or losing a solid asset. If you have ever been homeless or thrown out of a home for any reason at all, think about how that made you feel and the danger you were exposed to. Now you see how much real estate touches our emotions as humans. The resultant effect is that we approach real estate from this emotional standpoint.
We are embodiments of emotions. Meaning that we may not escape making decisions first from an emotional standpoint. Now when it comes to real estate buying decisions, the chances are higher that emotions drive us more than logic. There is nothing wrong with this except the problem of imbalance. The lack of a balance between emotion and logic will result in real estate buying or investing decisions that will not add up. The asset expected to be added gain will end up becoming a liability. Sometimes, fatal losses are incurred.
So how do you create a balance between emotion and logic when buying or investing in real estate?
1. Recall previous real estate investing or buying experiences
An easy way to recall previous real estate experiences is by asking yourself a simple question “what is my previous real estate purchase experience?”
As human beings, our experiences and exposure are a vital part of us. Real estate experiences play a major role in the course of a real estate investor’s future journey. The experiences of the past usually find a way to feature in the next attempt to buy or invest.
These previous experiences may be sweet or otherwise. Some people never want to remember previous real estate investment experiences if it is not a sweet one. This is understandable. Frankly, you may not need to recall experiences if you are no longer investing in real estate and do not want to pass on your experiential knowledge to anyone. However, if you are an active investor, there are loads of gems that you will find in recalling previous experiences.
The idea is to recall, document and be objective. The fewer biases the better.
2. Identify at least three lessons from your previous investing or buying experience.
In every purchase, you relate with different people or entities and different locations. While each purchase has its peculiar dynamics, there are basic rules that apply to all real estate transactions. Lessons from the process and outcome of your previous real estate purchase can serve as building blocks for the success of the next purchase. Do not underestimate them.
For instance, there are some things you did or steps that you took that aided your previous investment success or flop. These steps can be arranged into a blueprint for you when it comes to real estate purchases. You can introduce a few tweaks to those steps, to adapt them to the real estate in view. Remember, each real estate transaction has its peculiar dynamics.
If you have not invested before, you can engage other investors and ask them specific questions. Although we all interact and relate differently with real estate investing. Keeping that in mind, you want to take the lessons shared by others unbiased.
You could ask about how they researched to know if a property was the right one to invest in.
You could ask about how they pooled resources to finance their purchase. You could also ask about what informed the choice of location if your real estate investing goals appear to be similar.
The information derived from conversations with previous investors or personal investment lessons can serve as conversation boosters with the stakeholders involved in your next purchase. That way you are not a novice when it comes to the real estate property of the moment.
About the author
Oluwakemi Adeyemo is a highly sought Real Estate Investment Advisor and Coach. The expert who help investors to make more money in real estate. She believes that real estate is designed to sustain human existence and is the bedrock of wealth creation. Her job is to get to know your investment goals and provide you with expert yet relevant analyses on real estate investment options.
She has helped investors save more than ₦450,000,000 that would have been lost in real estate. She has also assisted to source vantage properties for businesses and individuals within record time. Closed transactions well over ₦1,200,000,000.00 and counting.
She researches a lot and scrutinizes real estate investments so you don’t have to. She helps institutional investors analyze investments and optimize profit in real estate. Her skill and expertise help individual investors understand better the concept of real estate, prevent regrettable mistakes and boost investor confidence. She is also an Author and Column contributor in Businessday Newspaper, BellaNaija and Nairametrics.
