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Monday, March 31, 2014

Real Estate & Fly Fishing - What Are You Targeting?

It really is amazing how many similarities I see between my real estate investing business and fly fishing. Actually, any fishing. For example; if I told you I like to buy houses, it would be too obtuse to understand. 'Houses' is a such a broad word. It would be better if I told you specifically what type of houses I like to buy wouldn't it? Just like fishing, if I told you let's go fishing on Sunday, be ready, I'll pick you up at 9am, you'd have absolutely no idea how to dress or what to bring. What if 'ready' to you meant shorts, a t-shirt, a lounge chair, flip-flops and a surf casting rod, but I took you up in the mountains to fish for trout on a freestone stream? Your flip flops wouldn't do so well on the slimy rocks, your legs would get destroyed by the scrub brush and that surf casting rod might be a bit overkill.

Likewise, if you told me you are a cash buyer and I kept sending you wholesale deals I had on $500,000 houses, but you are a cash buyer only for $150,000 houses or less, you probably wouldn't be too interested or prepared to close on any of those deals. They might be deals, but not to you. Same goes if we reverse that scenario. You want to go out fishing for tuna, and I keep inviting you to catch pan fish - you're probably not interested.

When I fish for steelhead, I bring a heavy rod, typically a 6 wt, with fluorocarbon leader and I dress warm with chest waders. When I fish for trout on freestone streams in the mountains, I bring my 1 wt superfine rod, wear a long sleeve shirt, and typically wet wade with just wading boots and neoprene booties. The hunt determines the gear. When you go 'hunting' for deals, make sure you are determining what exactly you are hunting for before you set out. If you're going after entry level houses, know your product, the typical cost of rehab, what they might sell for in the farm they are in and who your buyer most likely will be. Because you'll never find what you don't look for. Being correctly geared up is the best recipe for success.

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