The Overlooked Step When Faced With A Real Estate Investing Dilemma

You’ve invested in a property and it seems to be going well when all of a sudden you get a phone call in the middle of the night with some bad news…

Panic sets in. Your heart starts racing. Your breathing turns shallow. You worry. You try to act but the problem seems to be an immovable object. What do you do?

Here’s a simple, obvious, but often overlooked strategy to help you: Research.

Yes, as silly and as obvious as it sounds, research is an overlooked stepping stone toward a solution to your problem.

Why Research Is Overlooked As The Next Step When Faced With A Problem

It’s easy to overlook research because our minds become so focused on the problem and on the unique details of the situation. Our brains fool us into thinking that we’re the only ones in the world to face this challenge and that only by obsessing about the problem and turning the problem over and over in our head will we solve it.

But it doesn’t really work that way.

Here’s How To Take Charge Of The Situation And Work Toward A Solution
Don’t worry, we’re not going to say “don’t panic” because that’s the last thing anyone in a dramatic situation wants to hear. Instead, here’s what you should do:

1. Write out the problem in as clear detail as possible with as many facts as possible, while trying to keep the emotion out of it. Inevitably your feelings and stresses will come through but stick to the facts as much as possible. Be as detailed as possible, perhaps even handwriting several pages of notes on the problem.

2. Break the situation up into several smaller components, identifying the circumstances in a step-by-step timeline with the people involved.

3. With this detailed information, turn to trusted resources to help you find more information. Don’t worry about finding answers just yet – just get more information. For example, in a situation where a tenant trashed your property, consider which laws are in play and what those laws say. Look online at various resources but make sure you are working within the right jurisdiction (for example, a site for American investors might not provide the accurate information that a Canadian investor needs).

4. Once you’ve filled out all the facts of the situation (from step 1 and 2) and then the supporting material (from step 3) then it’s time to start looking at what other investors have done. Check out investor forums like myREINspace, talk to a mentor or coach, ask other investors at your local investors’ club.

5. By now, you have all the facts and you have some potential solutions. If you have multiple solutions to choose from, weigh each solution against the expected outcome to see what will provide the best answer. Resist the opportunity to do something just because it is cathartic. Stick to the facts.

6. Then act and move forward with confidence.

We tend to think of research as something we do before we start investing or as part of the due diligence process. But research can be an essential problem-solving tool when faced with those challenges and dilemmas that occur as a regular part of investing.

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