# Entrepreneur of the Week: Giving Her Loves # Post 6
Nearly two years ago (who would have believed?) A new concept came to our ears. Like thunder on a clear day, the corona fell on us, and with it the complete lack of awareness in the markets, both in the capital market and in the real estate market.
Of course I also had uncertainty about the future of, well, everything. Either way, my guideline was “you have a plan and plans need to be implemented”. When prices are cheap I buy. During my regular tour of the neighborhood I specialize in, I came across a completely renovated apartment. I am talking about a renovation at a level that is several times higher than the market standard. A nice couple lived in the apartment and asked for 550 NIS. The market price of the apartments at that time was about NIS 480. I knew that with the help of negotiations I could buy the apartment from them at a market price and sell it for NIS 530. The profit here was not expected to be large (several tens of thousands of shekels after taxes and related expenses).
During a conversation with the amiable couple, it became clear to me that the reason for the sale is a move abroad that should take place within about two years.
I will dwell for a moment on this part because there is a very strong tip here in negotiations- it is always important to find out what the reason for the sale is. If a certain property is asked for NIS XNUMX million to help the grandson raise equity for an apartment worth two million NIS, the seller * wants * to receive NIS XNUMX million for his apartment, what the seller * needs * is half a million NIS, and we Want sellers that we can fulfill a need for and not fulfill dreams for them.
The relatively low profit and the fact that there is likely to be pressure on the sellers in the future, made me remain indifferent to the deal. "I'll talk to them ahead of their move, when they're really stressed," I said. My eyes were opened because I saw greater profit potential. Of course I executed another deal, but one cannot ignore the fact that there was money lying here on the floor that I did not collect. Today, two years later, the apartment was sold for NIS 555. A profit that could have been mine.
There are two obvious conclusions from this case:
Do not sell in times of crisis! If I had entered into negotiations and bought the apartment from them, they would have lost a large potential profit. Sometimes the situation can deceive us. Psychology is a powerful thing and sometimes one strong thought can weaken all other rational thoughts and cause a temporary matter like the corona crisis, to feel like the most horrible thing humanity has experienced. Weaken your thoughts. In most cases nothing is really as important as it seems at that moment.
Do not remain indifferent. A good deal is a deal where the numbers work out. It is true that for the apartment they asked for a higher amount than the market price, but there are ways to produce a good deal in almost any situation. Market price is an individual thing and the sexiness in the concept of "buying below market price" can sometimes be confusing.
This is friends, I had fun. Hope you benefited a little from my digs.
Matan Ahavia, CEO and owner of INVEST & REST to accompany real estate investors.