Editor’s Note: Dennis Fassett is a former corporate finance executive turned real estate investing “Cash Flow Mercenary.” Dennis specializes in single-family and multi-family cash flow properties and thoroughly enjoys assisting his fellow investors with their own strategies, including how to buy your first apartment building.
As an ongoing contributor to Mogul’s “Market News Updates,” Mr. Fassett provides us with his own unique, lively, and thought-provoking commentary on the timely industry news and events of today that are impacting our industry. And be sure to check out his other super-helpful Market News Updates. For now, enjoy...
From Dennis Fassett, Cash Flow Mercenary...
I’ve been seeing a lot of ‘check flashing’ lately in social media.
You know, a wholesaler or rehabber closes a deal and flashes his $4,000 check for all to see.
Hey, I know it’s exciting to close a deal – I still get excited about every single one.
But I’ve never felt the need to flash a check, and nobody I know who does a lot of deals does it either.
It has probably become common because showing off has become popular in the showboat celebrity culture we live in, facilitated of course, by social media.
Now personally I don’t care whether you flash or not. But all of this flashing lately reminded me of my favorite football player.
Barry Sanders.
Perhaps you’ve heard of him?
If you haven’t, here’s a summary of what he accomplished, taken from Wikipedia:
In College:
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Played for the Oklahoma State Cowboys
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As a junior in 1988, he compiled what is considered one of the greatest individual seasons in college football history, rushing for 2,850 yards and 42 touchdowns in 12 games
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He won the Heisman Trophy
In the Pros:
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Played for the Detroit Lions
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Won the NFL's Rookie of the Year Award in 1989
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Led the league in rushing yards 4 times
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Two-time NFL Offensive Player of the Year
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Invited to the Pro Bowl in each of his 10 NFL seasons
Barry’s accomplishments put him near that top of a very short list of the greatest running backs of all time.
And had he not played for the Lions, one of the NFL’s most ridiculously inept and most poorly run franchises, he may very well have risen to be the best. Ever
So why does check flashing remind me of Barry?
Because of his touchdown celebration…
If you’ve never seen highlights of his, you ought to take a look at the videos on YouTube. What he did on the field was mind boggling.
So after all of that effort he put in to score, know what he did when he got into the end zone?
Absolutely nothing.
He simply handed the ball to the official then ran off the field.
Why?
Because he believed in what Vince Lombardi was quoted as saying:
“When you get into the end zone, act like you've been there before.”
Profound words. In football, and in business.
The Takeaway
The takeaway for me is that if you’re good at what you do, there’s no need to brag about each and every success.
Because, presumably, each is just another in a long line of successes that you’re going to have.
The thing is, while you can brag all you like if that’s your style, there’s another tactical and, I think critical, reason why bragging can be bad for your long-term success in this business.
And that’s competition.
Think about what you’re doing when you flash a check – you’re telling the whole world that you just closed a deal.
Have you ever thought about who might be watching?
Remember those guys I mentioned who are successful and doing a ton deals every year?
I know for a fact that a lot of those folks are looking for new markets to attack.
How do I know?
Because I’m one of those guys.
So when you flash, you’re not only drawing attention to yourself – you’re also drawing attention to your market.
From people who have marketing budgets that have 2 more zeros on the end vs. yours.
You’re basically telling everyone on social media that you have a great market where even new people can succeed. Because it’s mostly new people doing the flashing.
When the successful folks see that, they view it as if you’ve successfully tested the market for them – and that it could be a good market to expand into.
Get the picture?
It’s difficult enough getting deals in a hot and competitive market like this.
So why do you want to invite more people into yours?
Frankly I don’t see the point.
But hey – it’s up to you.
Are You a Flasher?
Tell me why or why not in the comments section below.
Dennis Fassett
earned a BS in Economics and followed that up with an MBA in finance. After working and corporate finance and banking for several years, he started buying single family houses, and quickly built a very nice portfolio of cash flowing rentals. When the credit markets started to dry up and he couldn’t get any additional single family mortgages he shifted his focus to apartment buildings. He now has over $3 million in rental real estate. He manages most of it his self and still has a day job. Dennis has even created his own Private Equity fund to buy apartment buildings.