๐ฅ
18d โข Discussion
After Each Deal Are You Asking What Went Well And What Didn't?
Navy Seals have a tool they use called an AAR, or After Action Review.
Known in civilian circles as a post mortem, unlike a group bitch session, it focuses on what can be learned instead of assigning blame.
I find this helpful in reviewing each deal, be they dud or stud.
Basically, you ask 3-5 questions:
- What was supposed to happen?
- What actually happened?
- What caused the gap, if any?
- What have we learned?
- What will we do next time?
For instance, in a deal I recently terminated, it was supposed to provide about $10k in revenues. We ended up investing about 12 hours researching, reaching out to prospective buyers and negotiating with the seller's agent. About $51 was invested in a contracting app we were thinking of investing in anyway.
Causing the gap was a willingness to test the market, and further develop the flip process, and therefore not underwriting the ARV or cost of repairs accurately for the market.
What we learned, besides a few logistical things, like how to submit an offer with CTM eContracts, favored by quite a few agents in the Denver market, and this particular listing agent, was to think through the time investment required to dispo a property under contract. Also, that we need to have a stronger cash buyer bench hungry and ready for real deals than we currently have.
What will we do next time?
- Underwrite conservatively, or at least in accord with the current market conditions.
- Have a strong buyer's bench ready.
- Be mindful that even aside from not losing money, there's a cost in researching and promoting every deal.
What experiences have you had where a process like this could be helpful?
0
0 comments
After Each Deal Are You Asking What Went Well And What Didn't?
powered by
skool.com/realfreeco-3644
Learn how to create profitable deals like clockwork. Clear frameworks. Real numbers. No hype.
Suggested communities
Powered by