The Ultimate Blueprint for Real Estate Success in an Ever-Changing Market
0451227050
Jorge Pérez
Notes
…you should sell your first project as soon as possible, so you experience success…you have to sell some of your properties. Why? Because you’ve got to show results.
As soon as I fall in love, the logic steps in. I start analyzing, questioning, weighing everything that made me feel that way against the cold, hard facts…I want them (the project team) to free-flow and think and think and think. I want to instill that passion in them that I have, so they can create grand ideas. I don’t want to take their passion and their creative juices and in any way curtail them during that creative process. (But he is skeptical by default, particularly in due diligence).
I’m much more inclined to take the first loss than to keep the cancer growing and try to fix it…I told myself, enough is enough. I didn’t want to deal with the negative thoughts, and probably fail because of market conditions I had little control over.
“Hey! You know what? I’m not wasting my time here, and if you guys want to”—I’m yelling at the lender, too—“then do me a favor and get the hell out of here. Because the reason I’m doing this at my age is not only to make the project better, it’s so you guys understand what it is that is going to make the project better.”
…the path to a sale:
- Develop awareness
- Build interest
- Create desire
- Create want
- Create need
“magic versus logic”:
- Create unique opportunity
- Create a sense of privilege
- Create credibility
- Create perception of value that exceeds price
- Create fear of loss
There isn’t one job, using the best designers in the world and the best architects in the world, that I come and look at and I don’t say, “We’re spending more on this job…be relentless about quality. It’s something you can never get enough of…I focus on landscaping, color schemes, and decor. I call many of those things the sizzle.
It was much cheaper for me to change one thing in the common area than to change three hundred things.
The second important reason is that I am seeing the way the project managers think and grow. Are they really thinking about this? Are they really getting everything down? Are they really seeing the issues with the jobs? Are they connecting the dots? Do they understand all the development functions: development, marketing, construction, budget?…I expect them to tell me everything that’s going on—are slow deliveries or missing materials slowing down the construction? Do all the subcontractors have enough people working the job?…Take notes. Catch problems early. Save yourself time, money, and headaches…I want them to come prepared to discuss issues. What can we do better? What are some problems we can have in the future? And how do we prepare for those problems we can have in the future?
Cuba Fear
Redlining
Sizzle
“magic versus logic”