A lot of people find it hard to separate their human emotions from making important life decisions. Many escape unhurt, but majority do not.
When you are making an investment decision, friendship or family does not matter as much as what the investment itself entails. You need to eliminate all forms of sentiment that may be flashing through your mind, not even if the person has introduced a profitable investment to you in the past. Like I mentioned in last weeks piece; always do your due diligence on every investment as they come. Now, that’s my first rule when it comes to investing in real estate. Another rule you should take cognizance of is; “Never include emotions with investment”
Never include emotions with investment.
Some people will say things like ‘I felt at peace with that company the moment I visited them’
This is very wrong, you shouldn’t conclude because of what you feel. Anything could be responsible for that feeling, which will not matter on the long run when the investment must have gone halfway. A lot of job seekers usually feel at peace with most companies they visit for interviews. They believe everything is perfect until they get the job and begin to face challenges at work. All those things that previously attracted them won’t matter anymore, some will even begin to seek ways of leaving the company.
The same applies to a person who has been attracted to an investment offer he has longed for. It may seem good until you open the veil. It remains pertinent in this case to separate emotions from investment decisions. Due diligence cannot be overstated.
We make money through friends and family, but we can also lose more money through them as well. I am sure you would not want to lose more money than that which you are making. Your refusal to do due diligence can even cost you your friendship and goodwill with a family member. Take your time to find out what you should.
In investment decision-making, you need to always have more than one choice. It is very important for you to create options for yourself. This will open arrays of outlets for you to ask questions and make the best decision for yourself on the long run.
It is the lack of option that makes a lot of people go for just anything, and it comes back to haunt them. Even if there is only one ideal option before you, have more than one person you are consulting with when you are doing your due diligence. There is no better way to be sure.
Don’t make the mistake of being put in a position where you have no comparisons to work with. Having an option gives you an opportunity to compare in an objective way. When you are dealing with just one offer, there’s a tendency to be limited to a subjective decision.
For instance, if you are planning to buy into our Roseberry Estate Agabara, where a plot of land goes for N600,000 naira, and you also have an option of another land which goes for N500, 000, you will have to ask us why ours is more expensive, and the onus then lies on us to give you answers. You may also want to ask why we always ask for standing order when others do not, or where it is stated in our terms and conditions that you will still have to pay for survey, documentation and infrastructure whereas these fees may not be applicable aren’t in other estates. You will need answers to all these questions, and what you are able to find out will ultimately help you make a decision you can take responsibility for.
Asking questions will help you clearly understand what you are getting into, but you may not be well equipped to ask questions if you have not created options for yourself, or you have allowed your emotions to shroud your decision.
I must also let you know that in the process of creating options, you must be careful about creating too many options for yourself, otherwise indecision may set in. Have a fair number you are using for your comparisons, else you will realize that with too many options, all you find yourself doing is endless analysis. That way you may end up being an investment analyst and never accomplish any investment decision.
MD/CEO, Realty Point Limited