Every now and again (at the very least) your investment strategy won’t turn out as planned and you will need to exit a property by selling it into a market where you take a loss.
How does a seasoned and experienced investor take a hit in the market place to fight another day?
I asked that question of master negotiator and a property investor to his bootstraps, John Potter, Author of the soon to be released book titled “Secrets of a Extraordinary Negotiator” (watch this space). Potter’s strategy is “Take the loss and don’t mention it again, don’t even talk about it in passing”.
If asked about it by anyone Potter says something simple and short like “Yes, I sold that property and “took a hit”. We don’t talk about it in my house anymore as we have moved on.”
And if you do find yourself talking about it despite your best plans to the contrary, watch what you say. Don’t play the victim. You know what I mean, avoid “Oh, poor poor pitiful me, I did this all right, I did my homework and look how it turned out. Why does this stuff happen to me.”
Ding ding! Round one!
Being a property investor says Potter, “Is like being a Prize Fighter in a fifteen round fight. You need to be standing on the canvas at the end of each round to get to round 15 to pick up the Prize.
So, now you find yourself in round 10 (the Global Financial Crisis), you get knocked to the floor by a couple of big body blows, but you must get up. You must take your losses and be standing at the end of the round.[sam id=32 codes=’true’]
The aim is to get the prize at the end of round 15. You see, in rounds 12 and 13 the market is going to recover and it will recover quickly. You can make back all of the money you have lost in 18 months, if you are still standing.
Opportunities will flow like wine at an Italian wedding but very few people will be able to take advantage of them because they have been knocked out in round 10.
So, take your losses, don’t get involved in any post mortems and be standing in your corner when the bell rings for the start of the next round.”