Is there a property you just can’t get out of your head? It’s aesthetically perfect in every way, and although it doesn’t fit your ideal investment criteria, the deal sounds too good to pass up. No matter how you try, you keep thinking about what it would be like to buy the property. Realtor.com® calls this a home crush.
You’re not alone. Lots of people find themselves falling in love with certain homes or buildings. It works in the same way as when you fall for another person. Some features have enamored you, tempting you to overlook others—namely the criteria you’ve set as a guideline for investing. Stick to your plan and walk away. If you don’t the seeds of a bad relationship will be planted and the longer you engage with a fantasy, the deeper they’ll go.
What if the home is perfect in every way? No undesirable features, no reason this isn’t a good investment? This is the time to remember why you’re thinking of purchasing the property—you’re an investor. Holding on to the property because you’re in love will suck your cash flow for other investments. Think it through and be very clear before laying your money down on the deal.
In 2014, Realtor.com® conducted a survey that indicated men and women develop different types of home crushes. (No surprise. It’s the same with people crushes.) The results of the survey showed women as being most attracted to outdoor living spaces and updated appliances, whereas their male counterparts prefer a spacious and attractive garage and curb appeal.
Just like a relationship with another human being, the longer you engage, the harder it will be to walk away.
Why is this information important?
As a real estate investor it’s wise to be aware of possible temptations so when you’re prospecting, you’ll have a heads up. If you decide to move forward with an investment you just can’t live without, make sure to plan your exit strategy. If you skip this step, a home crush could take you off track.
Take every aspect of your potential investment into consideration. Watch out for those amazing features that might tempt you to purchase when you should keep your hands in your pockets.
How do you safeguard yourself from unwise investments in disguise? Know yourself. Be aware of potential attractants so you can nip things in the bud. Just like a relationship with another human being, the longer you engage, the harder it will be to walk away.
Create a list of qualifying features for your ideal investments and stick to it. Know which investments meet your guidelines. Why are you investing in these particular properties? Is it cash flow? Are you building reserves? Measure each investment by your list and if they don’t pass inspection on all fronts, walk away.
As a real estate investor, count on experiencing love at first sight once in a while. Don’t ignore your instincts and talk yourself into making an investment against your better judgment. Climb on the wrong horse and you might be saddled for life.