When bidding wars push buyers to overpay, renovation and holding costs eat away profits. The real skill isn't throwing money at problems. It's developing the interpersonal abilities to have uncomfortable conversations, ask deep questions, and build trust.
And I, what I would say to that is the person who wins the bidding war loses the most money. Person, let's say there's 10 people, we're all bidding on this property. Biddy biddy biddy biddy biddy. It's getting the price is getting higher and higher and higher. And then this person wins. That person just lost the most money. Think about this because then you have your expense. Let's say you bought it for this much and it's only worth this much. But then after you you renovated it, you put in this much and then. Holding costs are up here. You're taking a loss. The person who wins the bidding war is the one who loses the most money. It's not about throwing money at the problems. It's solving the root of the problem. So you have to get good at having uncomfortable conversations. You have to be good at asking really deep and personal questions and building trust and rapport. Those are the skill sets that pay really well. Throwing money at the problem is not actually the solution.
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Keith Gillispie: Why Most New Investors Fail & How to Avoid the Common Traps #250 | SaaS District
