How to Make Better Decisions by Using Decision Criteria

Are you a linear thinker, making decisions based on logic? Are your decisions more like fuzzy logic? Do you throw darts at the options? Have you ever heard about “decision criteria?” No, “decision criteria” is not a foreign language. Don’t worry; there is hope for you yet!

I often hear people say, "I'm logical and I make decisions based on logic." The interesting thing, many of these people have advanced degrees and are extremely bright, some even brilliant. What I do notice, however, is that not all of these people drive the same types of cars, eat at the same restaurants, or vacation in the same places. Perhaps, everyone has some bias and emotional ties to their decisions. When you ask people why they chose a particular car for example, they will often list the features (safety, JD Powers rating, etc.) A few will say, "It really makes me feel cool when I'm driving XYZ car." Even the best investors can make the mistake of buying based on emotion. This leads me to the use of decision criteria.

Prior to making any big decision: investing in a property, stock, or choosing the final 3 MMM Challenge candidates, one should list the things that are important. The MMM Challenge for example: desire, experience, hard working, ability to network, how they fit on the current team and the list goes on.... List those important attributes then rank them in order of importance. The decision and ultimately the discussion will be about the candidate compared to the criteria. This helps everyone derive the same conclusion based on the pre-set criteria. Emotions are kept in check.

This little technique will also help in making better investment decisions. Investments will be acquired based on the numbers and the desired outcomes. It will prevent investing because the house reminds you of your childhood or the owner is a real nice guy.

Next time you have a big decision to make, put aside some time to list the criteria you will use for making that decision. It will increase the speed with which you make decisions and increase the quality of those decisions. Especially as Real Estate Investors, we need to quickly sort through tens, even hundreds of leads of potentials investments before we can find one that fits our profit/risk profile. This can be a daunting task unless we structure our decision making. Having a standard set of criteria upon which to compare potential projects – is the safest and most reliable way to go.

Dana J Lange is an executive with a strong history of success in both the board room and entrepreneurial circles. Dana brings strength of knowledge and success in sales and marketing. Dana J Lange specializes in B to C Class apartment complexes with 100+ units in emerging markets. He provides the strategic and analytical skills to find undervalued properties that provide significant returns for investors.

Dana J Lange invites you to learn to earn high and even INFINITE returns investing in commercial real estate with a group (on money you used to have sitting in pathetic CD's at 4% or less) when you become a Select Member with America's #1 Real Estate Network today! Join us for an upcoming educational presentation online to get information or to get started now.
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