Rules of Real Estate

Never Fall in Love with a Location

Of all the "rules", this is probably the most violated one in all of the real estate industry. It's not difficult to imagine that after you’ve been driving around for days, or even weeks, looking at every god-forsaken piece of bad real estate, you finally stumble across that one site that just seems right in every way.

Suddenly, you can’t think of anything else. In your mind, you see the “Grand Opening” signs and lines of customers streaming out the doors, the start of your empire. It's love at "first site" and you just gotta have it!

Kiddo, you’re in big trouble. You see, even if the site appears perfect in (almost) everyway, you should Always be willing to walk away from it.

It could be a great location, the rent may fit your budget and it could even be located on the corner of “Walk and Don’t Walk”; however, if something is really not right or your attorney strongly advises you against it...you have to be mentally prepared to walk away from it at any time, right up and until the day you sign the contract. It may sting a little, but the potential hosing you could take in the future, could be devastating to you and your business.

But that does not necessarily mean, “Run” . Always walk away from the good opportunities s-l-o-w-l-y. If the deal has progressed far enough along and the landlord has put in his time (not to mention his attorneys fees) into the deal, he may not want you to walk out the door either.

A good tactic to consider would be to always end the meeting on an amiable note. Shake hands, smile and wish everyone well…and leave! Always try to walk away from a deal with an extended hand and a smile, let the other guy be the son-of-a-bitch.

Remember the old adage "never burn a bridge"? Here is a moment where it truly comes into play. But once you start walking don't look back. It didn't work for Lot's wife, and it will not work for you.

What happens more times than not is that the owner sees his rent money leaving, the broker (providing there is one or two at the table) will see their commission going down the chute, and the owner’s attorney will normally start trying to spin control his relationship with his client, post-haste (‘cause campers…he’s the only one getting paid that day anyway).

If you leave loud and in a huff, you're only making their decision easier. Walk tall and slow...but walk. Never make the mistake of giving in to an important issue (or issues) just because you’re blinded by your love for a location.

We have seen too many people pay way over market rent, take on way too much liability or agree to do more than their share of work; and eventually pay for it with everything.

By breaking this rule – you’ll be taking a tremendous risk - and you will eventually pay dearly for it. 

So...never, ever fall in love with a location.



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