One of the classic rules of business is that you cannot let your emotions cloud your judgement. If you do, you end up making decisions based on a biased view and not on the facts of the situation and the potential upside of any deal. The danger of this is that you can take a situation which is pitched in your favor and end up turning it into a failure. There are many decisions in life where you can go with your heart and have it all turn out fine. There are others where you cannot, and real estate is one of the areas where this applies.
You can look at a house and love it – think the location is wonderful, the décor amazing, and the price reasonable – and be tempted to buy it. But if you are getting into real estate in order to make a profit, then it stands to reason that you need to think about things more soberly. Yes, you love the house. Can you be sure that a potential buyer will think the same? If you are planning to make changes to the house, are you making them to suit your taste or someone else’s?
The issues of trying to make a profit from real estate are varied and complicated, and you risk making a loss and running yourself into financial difficulties, and even bankruptcy, if you are not careful. And yet many seemingly clear-headed people get tunnel vision when working on a project and turn their back on sound advice. Don’t be one of those people.