Often the new, and occasionally the seasoned investor will close on a marginally profitable house deal or flip which only sets them up for bad buying habits. This should be avoided. There are many reasons to not do marginal or skinny house deals. Let me share a few.

If an investor finds themselves in the rut of buying houses with small equity, they realize the very reason they became investors is now beginning to elude them. The reason they became investors was quality of life. Let me repeat this sentence. The reason they became investors was quality of life. Ponder that a moment.

We become business owners to have a life, have money for the extras, spend time with loved ones, and pursue our passions and hobbies. When an investor starts wholesaling, rehabbing, and closing on skinny deals, precious time begins to slip through their hands. We find our self like the proverbial mouse running nowhere on the wheel in our cage.

However when an investor passes on skinny deals and buy, bird dog, wholesale, or rehab houses with generous equity they avoid the mouse trap or wheel. Bigger paydays occur, not as many, but much larger.

The workloads, frustrations, and risks are greatly diminished. Now the investor is free to enjoy their lives, time with family, and take more days off. They have learned to work smarter not harder.

Quality deals over quantity deals, that is the investing you want to do.

If you cannot survive between deals, keep the day job, nothing wrong with that. Face it, not everyone can be a Warren Buffet. Your day job gives you a steady payday and some friends. Working alone, can be well just that…alone.

I have been full time for about three years now, and just recently I went back to working as a nurse part time. The market slowed down so I did the obvious. I enjoy it, its nice to do it when and how I like, not just because I need a job. So new guy, take a deep breath, exhale, stay with your job for now. Start making long term plans to do investing for the next 1-2-5 years and see where you can take it!

So just remember quality house deals over quantity deals, and then you can laugh at the mouse on the wheel.

Instead choose the quality deals, those are the ones with a lot of equity in them. I like to begin at 50 cents on the dollar during seller negotiation, and at times much cheaper if need be.

When you hold back from buying and wait for the really great deals it pays dividends. The small deals will eat your lunch in time. Trust me on this, experience is talking to you!

Also here is the big overall problem. An investor will not realize until they are too deep in it that all their precious time is now at about, when averaged out, $5.00 per hour  but with the liability, stress, and frustration of $80.00 per hour. Chew on that a while.

Another part of the overall problem is in the middle of it quantity investor’s begin to realize what they have created, a monster. No, not a good profitable monster like you are thinking. Guess what, now they don’t know how to do business any other way. They are stuck. On the wheel. Enough said.

Now if you are following the rules of quality over quantity, you easily learn how to find, evaluate, and estimate great deals. You are wiser, while spending less money and time searching for deals. You are now a wise investor.

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