The Property Sleep Test
To me, after many years investing and with dozens of properties in my portfolio, the actual act of investing still revolves around what I like to call the 'sleep test'.
Can I invest in this property and sleep a full uninterrupted night without worrying? If the answer is yes then I'm ready to invest.
It allows me to make a decision based on a sound and calm mind and limits the 'great salesperson' factor. By that, I mean that it gives me some space and some to time to halt a deal I might have rushed into.
In fact, this is such a useful technique, I use it for any purchase above £300.
I do my research, choose the item, do everything I need to buy it, but I don't. Instead, I go home and sleep a full night. Then in the morning if I still want it I will buy it. I can't tell you how many times I've woken up with a fresh perspective and not made a bad purchase. It's amazing the difference a day (or a night in our case) makes.
So, if you couldn't sleep a full night then either try to drink less coffee or ask yourself am I lacking education or detail in some area? If you are, then you need to rectify this prior to investing. If you're not lacking in education or detail then perhaps it is not the right deal for you.
Remember, the greatest of deals normally only comes along once a day. Think about it. The practical test of this is that no matter how good the deal is, always, always delay your decision until you have slept on it until you are sure that you understand the deal. This will normally only come with experience.
If you wake in the morning feeling enlivened and fresh then you have passed the sleep test. If you wake feeling like you just went to bed then perhaps it is time for more consideration? The most important lesson in property investment is this: you are responsible for each and every one of your own decisions.
Live with passion,