“Face your fear and do it.” That is advice I received from a client many years ago when I was considering investing in my first commercial real estate property.
I took his advice, partnered with a colleague, bought the apartment building and had no regrets.
It was the right message, delivered at the right time and I have since repeated that same message to clients when the time was appropriate.
Fear is the human condition that limits most people from making bold moves that could impact their circumstances exponentially.
I’ve said before, when I truly believe a client should or should not go forward with a transaction, it is my job to pull together all of the persuasion skills I possess to convince them. I have studied and practised this skill all of my working career.
We invested a relatively small amount of capital into refurbishing that first property and sold it not long thereafter for considerably more than our total investment.
Keeping ourselves honest
It’s important to state here that due to ICR’s non-compete clause I can’t seek my own investments in Saskatoon.
Our company is proud that, “ICR registrants, partners/shareholders and employees shall not compete with ICR clients by virtue of the sale, lease, property management or development of commercial real estate within their primary market.”
Therefore, any commercial real estate investments we make are outside of our primary market.
Some years later I had an opportunity to purchase a multi-tenant office building. It was the right size of investment for my wife and I to acquire without a business partner.
I negotiated the purchase and proceeded with our due diligence.
This was at a time when there happened to be many storm clouds forming around the economy. Fear descended upon my judgement.
Fear had me pinned
I remember stopping at a coffee shop on my way to the listing broker’s office to ponder the final decision.
We did not do the deal. Looking back on that day I realized it was absolute fear that overruled the decision.
I presented the opportunity to a good client and friend who did complete the purchase of the property.
He offered me an option to purchase a one-third investment in the building, based on the same price he acquired it for, at any time within two years after his closing. We exercised that option and held the property for several years.
A time arose when the right thing to do was sell it and we did; at just over three times the original acquisition price.
That entire capital gain coulda, shoulda been ours but instead, due only to my fear, we realized one-third of that profit.
That was a very important life lesson for me.
When I find myself faced with a major business decision, I often look back on that experience to discern how much of a part fear may be playing in my decision process.
Ask yourself honestly, how much does fear affect your life journey?