VDI Insights: How to Avoid Making Costly Emotional Decisions

Listen:

-Tim Murphy

I'm headed on my way to a new investment opportunity and made me think about something that's extremely important when you're a real estate investor.

Research.

I'm making my way away from my niche market, my honey hole, Edina in southwest Minneapolis.

A place that I researched for years before I actually got into.

But even though I've been in that market for over 10 years, I continue to research the market.

But as I become a true expert, an insider, someone that probably knows that market from a real estate perspective and investment perspective better than anybody else, I'm heading to a new market, to a new territory, in my car, which is exactly where I'm recording this today.

I makes me think about how much I don't know, compared to what I do know.

In my niche market, the knowledge I have is almost subconscious.

And what do I mean by that?

Subconscious because I've done so much homework, so much research, I've built and tested so many different theories, that subconsciously, I'm making decisions that I probably don't even know I'm making.

And when I feel something doesn't feel right, it doesn't mean that it's emotional, it means that it's subconscious, because I have been working that market for so long.

Well, now, on my way to a new market, I realize how much I don't know how much I need to learn, and how much work I have to put in to get to the same level of knowledge that I have in my niche market in Edina in southwest Minneapolis.

And it's a lot of work.

So as you are getting into real estate investing, remember it doesn't happen fast.

And it doesn't happen quickly because you have to do what I'm doing right now, and that's put in the research.

If you don't, you will make emotional decisions.

You won't make a logical decision.

So, if you're like me, and you're either thinking about getting into real estate, investing or you're going to move to a new market, pay attention to the research, pay attention to the facts, because if you don't, then all you're really doing is making a bunch of emotional decisions and that will cost you money.