The Importance of Being Open-Minded in Real Estate

To aspiring real estate investors.

It pays to be open-minded and curious.

No two properties are the same. For that reason alone – and there are many others – real estate opportunities are often mispriced.

If a real estate agent asks me: “Would you consider buying a particular property?”, my reply is always: “Of course, if the price is right.”

In fact, to emphasise the point, I often say that I’d be willing to buy the Nullarbor for $10 million – site unseen – purely for its option value. I’m not sure what I would do with it, but I’m sure my great great grandchildren will think I’m a genius.

If a real estate agent asks me: “Would you consider selling a particular property?”, my reply is always: “Of course, if the price is right.”

Most good agents will then ask: “For what price ?” That’s a smart question for them to ask, but a dumb question for you to answer. Throw it back to them: “You’re approaching me, you tell me.”

Only one in about twenty random approaches leads to a great buy/sell transaction. Not great odds, so you need to be disciplined about the time you allocate to these opportunities.

Even so, in my experience, great investors don’t just maximise their return on investment but also their “return on luck”.

And while fortune favours the bold, luck favours the curious.