Staying Calm

[alexmorrow]

There is a time in every person's life when they react to a situation without thinking it through. Recently, I reacted and almost lost the confidence of a park manager. I met with Steve and a new investor, Ken, for lunch last week at the Legacy Ridge Country Club. Ken seemed to be a knowledgeable investor that has been in the mobile home game since the 1970s. After Steve took off, Ken and I stuck around and continued to chat. He asked if he could go take a look at the homes I had an interest in purchasing. When we walked into the houses, he started asking me if I had any money in them. Then, he told me to cut my losses and don't even take them on. Ken told me I was making a HUGE mistake. Well, I panicked. Instead of contacting Steve or Jim, I called the park manager and said that I wouldn't be able to take on all three homes. However, I'd be able to take on one. Luckily, I told him the reason was that I didn't want to take on too much. Also, I did let him know that I would chat with my mentor (Jim) and see if he was interested in taking the other two homes. Well, I e-mailed Jim immediately and asked him to call me asap. Sure enough, he called a little later and agreed to meet with me at the park the next day. Well, everything went smooth as butter from that point forward. However, after collecting my thoughts and calming down I realized (with the help of Jim) that I can not react to situations. If you react, you lose credibility and make unwise/rash decisions. In addition, people will lose confidence in your ability to complete the assigned task.

[Debbie]

That was ***** of Ken! Certainly sounds like he deliberately tried to eliminate your self-confidence. I'd just acknowledge him in passing but steer clear of Ken, if I were in your shoes.

[Dan Auito]

It's such a huge plus to have Jim there to guide you. Eliminate Ken from any deal making or conversation relating there too.
Stick close to Jim, he is the "MASTER" Grasshopper.

[Jim Johnson]

Well, everything went smooth as butter from that point forward. However, after collecting my thoughts and calming down I realized (with the help of Jim) that I can not react to situations. If you react, you lose credibility and make unwise/rash decisions. In addition, people will lose confidence in your ability to complete the assigned task.

Two things here... reaction is OK if your emotions are not guiding you. The key here is the panic work... do not act in a panic state... or any emotional swing. Clear your head and then act, or react, or whatever...

next... there is nothing wrong with Ken. It is important to know where someone sits before they tell you where they stand. Ken invests in mobile homes differently... nothing wrong with that... Alex needs to know that because everyone is a bit different in the investing style is not good or bad... just different. Bottom line... Alex will yield much better than Ken... the homes might not look as nice on the outside or the inside... but when the dollar in and out is counted... Alex will put out less for more in return.

I have a phrase for this concept...
Functional, not fancy.

[alexmorrow]

There is nothing wrong with Ken. What he sees as a poor investment, Jim and I see as a golden opportunity. Ken has a very different viewpoint than us. Once I analyzed his type of investing (with the help of Steve and Jim, THANKS!), I discovered that he truly believed I was throwing away my money. Ken was actually looking out for me. Any way, I'm just thankful that I have friends like Steve and Jim to guide me. They are the best.

[BSH]

This is an excellent lesson for all of us. I've made the mistake of making emotional decisions. Thankfully, I've never lost any out-of-pocket money, but I'm sure I've lost potential money. And I know other investors have thought I was just a scaredy-cat. Unfortunately, I have HAD to make a few emotional decisions lately (caring for my 79-year-old mother-in-law with Stage IV terminal cancer, mother died recently, husband not in the best health lately, etc.). A few times, I have had to walk away from what I knew were good deals because it was just too much for me to handle, or I was afraid I wasn't really thinking clearly because I was so stressed out.

But I have learned to take with a grain of salt the advice of anyone else, whether in the business or not. I've learned that I know what I'm doing, and I know my market. I listen to others, but I try not to let it sway me unnecessarily. That's a hard balancing act for me because I respect others' opinions--especially more seasoned investors.

I've also learned what it seems Alex has learned: There is more than one way to skin a cat in investing. You and your buddy Ken do things differently. I'm sure you and I do things differently, too. So what? If it works for you, good. If it works for me, then it's good for me.

So we'll all leave our emotions at home from now on, right?

[alexmorrow]

Precisely. Never make a decision off your emotions.

[Jim Johnson]

Precisely. Never make a decision off your emotions.

So.... how long does it take for one to become calm... to not be reactionary... to develop a factual basis for a decision?

Remember that time is the keystone to any negotiation... he who holds the time... hold the key... if you are pressed for time you can be exploited and you will probably make bad decisions...

Are calm and time much the same thing here... if you have both are you even better prepared...

So how much time do you need? how do you clear your head? How do you buy time?