The level of success you achieve in life and in Commercial Real Estate is determined by the decisions you make. That is why it is critical you make courageous and wise decisions. I had to make some major decisions to get me to where I am today.
I left home at age 18 and went to college, changing my major three times. While finishing up college, I became a single parent. Later, I left my corporate job as an engineer to pursue commercial real estate full time. Now here today, I lead one of the top commercial real estate investing firms in the country. In this post, I will share with you the 5 keys to making decisions that opened the door to success for me in commercial real estate investing.
Key #1: No Decision is the Worst Decision
When you must decide something, try to make the best decision. If you cannot make the best decision, you still need to make a decision, even though it may not turn out perfect. The worst thing you can do is nothing.
To quote our 26th president, Theodore Roosevelt, “In any moment of decision, the best thing to do is the right thing. The next best thing is the wrong thing. The worst thing to do is nothing.”
I realize that making decisions can be daunting at times and sometimes we are afraid. However, regret can be just as scary. In my opinion, making no decision is irresponsible not only to yourself, but also to those who depend on you.
Eric Schmidt, former CEO of Google once said, “When someone offers you a seat on their rocket ship, don’t ask what seat. Just get on.” Do you want to jump on this rocket ship called commercial real estate investing, or do you want to stay grounded?
Key #2: Exercise Your Decision-Making Muscle
Decision-making is like a muscle. The more you use it, the stronger it gets and the easier it becomes. It stands to reason that when you stop using your decision-making muscle, it begins to weaken. For some of you, your decision-making muscle is weak. Some possible reasons for this are:
- You live in a world of fear and are afraid of making decisions.
- Others have always made decisions for you.
- You may be in a comfort zone.
Action Item: You need to start exercising your decision-making muscle by looking for opportunities. Is there an opportunity right now for you to make a decision? If so, I want you to make a call, send an email or request a meeting. I want you to decide right now. I guarantee you, your decision-making muscles will get stronger, and your life will thank you for it.
Key #3: The 40-70 Decision-Making Rule
Many of you have a fear of making a mistake when making decisions. A helpful tool for you to use is the decision-making rule made famous by former Secretary of State and Four Star General Colin Powell. He feels that when you have 40% to 70% of the information needed, it’s time to go with your gut and make a decision. If you make decisions when you have less than 40% certainty, you are gambling and being foolish. However, when you need more than 70% of the information, you are over analyzing, and you will miss the window of opportunity.
Analysis Paralysis
That was me many years ago. Being a former engineer, I erred on the side of over analyzing, wanting all the boxes checked before I decided on anything. This led to wasted opportunities. Missed deadlines are a telltale sign that you are overanalyzing. Another sign is that you wait until everybody agrees with you before making decisions. This is what I call analysis paralysis. No decision is made, and you lose out on the deal.
This tool is helpful for getting you over the hump in decision making on a deal. Once you have 40% to 70% of all the data, you need to make an offer. Go with your gut, and you will be rewarded.
Key #4: Know Your Why
When your why is powerful, then the how-to is easier. Meaning that when your why has significance to you, it’s easier to make decisions. My why when I first started was twofold:
- My boss, who was my mentor was laid off without him even being aware of management’s intention of putting me in his place. I wanted no part of that because if they can do that to him, who started the company, they can do that to me.
- When I first started, failure was not an option. I was a single parent and had the most supportive, encouraging, and inspiring little one to care for. I wanted to become a full-time commercial real estate investor and create a better life for my son. That was a powerful why and I continued to push through, and we thrived.
What is your why? Why do you want to begin down the path of commercial real estate investing? Some possible motivations might be:
- Create your own personal retirement fund using commercial real estate investing
- Travel whenever or wherever you want
- Leave your job and do commercial real estate full time
- Leave a legacy for your kids or grandkids
- Give to ministries and charities
All these things have something in common. Create, travel, leave and give are all decisions and you must make decisions to get there. If your why is powerful, you will make a decision.
Key #5: Make Decisions Quickly, Change Them Slowly
When you study high-performing individuals and great leaders, one trait they have in common is to make decisions quickly, and then change them slowly. If you practice this, you strengthen your decision-making muscle. You will experience personal growth and you will reach your goals.
Then again, if you make decisions and then constantly second-guess yourself and change them, you will weaken that decision-making muscle. This is because it creates inner conflict, and you are going against your gut. You will think that you should have stuck with your decision. So, make decisions quickly, change them slowly.
Be the CEO of Your Life
You need to become the CEO, the great leader in your life and start making executive decisions over your life. You are in control of your finances, faith, health, relationships, and business. If some of these areas are failing and you’re not where you want to be, it’s time to do something about it.
