There are certain characteristics that are fundamental to every type of business transaction. Those fundamentals are clarity, integrity, and accuracy.
The number one problem I see in transactions that cross my desk from investors who want me to fix them is a lack of clarity and unclear communication as to a meeting of the minds between the parties. Something was assumed, misunderstood, or misinterpreted. Instead of taking an extra 20 minutes at the right time to talk something through, assumptions were made which caused problems that will take multiple hours to figure out later.
Even worse than the issue with clarity in a deal is the lack of integrity. I’ve seen some business and real estate deals where one or more parties to the transaction clearly lacked the requisite integrity to be someone with whom I would want to be associated in business. It doesn’t matter how good the deal or the paperwork or the financing is. If the deal has someone involved who lacks integrity, it’s a bad deal.
Accuracy is one of the many characteristics for which I am grateful for my assistant. She strives for accuracy in all that we do, whether it’s the grammar and punctuation in what I write, or the accounting for my various businesses. Records and bookkeeping must be kept up to date. This is a fundamental aspect of a successful, sustainable business. If you are “too busy” to make sure your records are handled properly, then you are probably someone who is “too busy” for me to do business with you. If you lack accuracy regarding your finances, you probably don’t even know if you are truly making money or losing money.
I hope this four-part series focusing on some fundamentals has been a good reminder for you to be careful in your business dealings, particularly as we navigate this challenging time in the real estate market.
