Hey guys! Happy Friday and welcome to another edition of our property renovation deep dives. Today, we’re tackling a topic that doesn’t always get the spotlight it deserves—the importance of communication in property deals.
You might be thinking, “Communication? Really?” But trust me, this isn’t just small talk — getting your communication right in property investing can make or break a deal, literally. Let me share a real-life example from my recent experiences in Shoalwater, where clear communication was the only thing that saved us from losing a significant deal.
Why Communication is Vital in Property Investment
It’s easy to focus solely on the numbers, the contracts, or the legalities when you’re deep in a property deal. But here’s the thing: none of those matter if your communication isn’t on point. Poor communication can lead to misunderstandings, mistrust, and delays — all of which can really sabotage a project. The importance of communication becomes even clearer when you’re dealing with multiple parties, complex negotiations, or tricky situations like probate.
In my Shoalwater deal, we were dealing with a lot of delays (probate issues, missing relatives, and even a death in the family — honestly, this deal should be a book someday!). After months of back and forth, we finally reached the contract stage, but the sellers were dragging their feet. At first, I couldn’t figure out why, but it became painfully clear: they weren’t on the same page because of a failure in communication.
The Shoalwater Property Saga: A Communication Case Study
This property was owned by two siblings, a brother and sister. We had been negotiating primarily with the brother, who seemed fully onboard. However, it turns out that he hadn’t communicated much with his sister, leading her to have a completely different understanding of the deal.
Her main concern? She thought we were ripping them off because of the booming market and the perception that all we were planning was a cosmetic renovation—a quick lick of paint, replace the carpets, and flip the property for a huge profit. With this misunderstanding in her mind, she was questioning the fairness of the profit split. And honestly, I couldn’t blame her—if that’s what I thought we were doing, I’d be pissed off too!
But here’s the kicker: her definition of a cosmetic renovation was vastly different from ours. To her, it meant something superficial and low-effort, when in fact, our plan was for a more substantial transformation that added real value to the property. This lack of clarity almost killed the deal.
The Role of Trust and Reframing Conversations
After I realised what was going on, we had a long conversation with the sister to clear things up. We reframed the conversation around what a cosmetic renovation actually meant in this context, explaining that our approach involved more than just surface-level changes. We reassured her that we weren’t just going to “slap some paint on the walls and call it a day.” We were making a serious investment in the property to create something that would benefit both parties.
This conversation was a game-changer. Once she understood the true scope of the work, the deal was back on track, and we were able to move forward. It’s a prime example of why communication is so important—not just between you and your team, but with your clients and business partners as well.
Don’t Assume—Over-Communicate Instead
If this experience taught me anything, it’s that you can never communicate too much in property investment. I’ve seen deals fall apart because one party assumes the other understands what’s happening, only to find out too late that there’s been a critical misunderstanding.
In my case, trust was the foundation that allowed us to sort things out. But trust alone won’t always save the day—you need to be clear, consistent, and proactive in how you communicate, especially when money and emotions are on the line.
Lessons Learned: Communication in Property Deals
- Clarify the meaning of key terms – Words like “cosmetic renovation” might mean something different to each party involved. Define your terms early on to avoid confusion later.
- Establish trust early – Open, honest communication builds trust. Make sure everyone involved in the deal feels informed and confident from the beginning.
- Over-communicate rather than under-communicate – It’s better to explain things twice than assume people are on the same page. Miscommunication can cost you time, money, and opportunities.
- Listen actively – Communication isn’t just about talking. It’s about listening to concerns and addressing misunderstandings before they turn into bigger problems.
Communication Beyond the Deal: Personal and Business Success
This doesn’t just apply to property deals. Whether you’re running a business, managing a team, or even navigating personal relationships, communication is the key to success. It’s easy to assume that people understand your intentions, but in reality, clear communication is the only way to ensure everyone is aligned.
Take a moment to think about your own communication habits. Are there areas where you could improve? Whether it’s in your business or personal life, upping your communication game can lead to better results, fewer misunderstandings, and stronger relationships.
The Bottom Line: Make Communication a Priority
In the world of property investment, deals often hinge on how well you can communicate your vision, your goals, and your strategy. Don’t leave it to chance. Be proactive, transparent, and open, and you’ll avoid many of the common pitfalls that lead to deal breakdowns.
Where are you at with communication in your personal and business relationships? Could it be better? I’d love to hear from you! Join my socials below and let’s get connected.
Until next time, get off that comfy couch and start communicating better today!
