Last week I had a chat with a lovely property lady called Jane. The discussion included a number of the softer issues of being in property, or indeed any business, not just the harder issues. This lead to us talking about it all being a bit 'woo woo' perhaps. Or is it? I would argue quite strongly that having the right balance between the harder, more technical aspects of property investing is insufficient without also having an appreciation of some of the softer, emotive, thoughtful or more intangible aspects too. There's a Yin-Yang thing going on here and I shall share not only elements from my conversation with Jane, but also some personal experiences that illustrate this from my own property and non-property experience.
Woo woo...here we go!
The Values Factor book by Dr John Dimartini
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Today’s must do’s
Know yourself and your values and try to align yourself to other people and environments where there is a close match. Practice good instinct, or get someone with good instincts around you. Pivot - by all means change the 'how' but don't change the 'why' too much. Know when to quit, take the decision to quit if you need to. Make sure you go with the grain, the flow or the tide...personally...things are easier when you do.
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Transcription of the show
Hello and welcome to another episode of The Property Voice podcast. My name is Richard Brown and, as always, it’s a pleasure to have you join me on the show again today.
I had two ideas in mind for the theme for this week’s show. I guess you could call one a hard subject and the other a softer one. The hard subject was an analysis into house price inflation versus price and wage inflation and trying to understand how house prices growth can outrun these measures for so long. In truth, I wanted to undertake a little more research than I allowed myself time for to do that topic justice. However, if you think it could be interesting…just let me know!
The other option, in my personal opinion at least, is no less important than the technical insight into different inflationary measures. Granted, some of you might be shouting at the screen right now…please give me some of that harder content. But hear me out, as I explain what on earth ‘woo woo Wednesday’ is all about and why you should pay as much attention to it than to the technical stuff.
Woo woo…here we go then…
Intro…the conversation with ‘Jane’ that inspired today’s episode.
Wanted to work in property full time after a redundancy
Had a small amount of cash to invest, but insufficient to realise the financial goals she had
Worked on creative strategies such as rent-to-rent
Also had a separate business, without revealing what sector, one that required a specialist skill set to deliver…which she did not have
Clash of values: property partner & business partner
After several years of sweat equity, realised that it was too hard and perhaps going against the grain (my words)
Outcome – she quit the business and the property business and returned to freelancing in her specialist area. Decided to generate income from what she knows best and potentially still invest in property along the way as she saves the funds.
In our conversation, many of the points I am about to share were raised…mostly by me..and it all sounded a little bit woo woo perhaps. Or is it really?
I would say absolutely not, it is in fact VITAL to understand these points. Not only to understand them, but practice them in our lives, including in our property business. There needs to be a balance between the harder, more technical stuff and the softer, more emotional or thoughtful side of things. It’s a Yin-Yang kind of equilibrium after all.
- Our instincts
- Intuition & gut – if it looks like a duck, acts like a duck and quacks like a duck, then it’s probably a duck!
- Judgement & thought – use investment rules
- Managing & controlling our emotions – be aware of our investor personality type and our investment biases. Watching sport, recognise yourself pre-judging certain players or teams for example.
- Example: Dodgy D in the USA…quacked like a duck!
- Pivoting, yet remaining true to our vision or reason why
- The Lean Start Up – Eric Reis
- Try lots of stuff, fail quickly and often
- Don’t get too hung up on the how, focus instead on the why.
- Example: achieving financial independence through property is core, the strategy of how to get there is fluid
- Knowing when to quit
- People see perseverance as a positive trait, but it could also be the one thing holding you back from remodelling, refocusing, rebuilding or even reinventing yourself and your business approach
- Tough lessons in life – stay too long and you may just pay the price. Examples, travel agents and retail insurance brokers…where are they now?
- Example: business consultant after a cancellation of a large single client contract…77 small business owners and most said no lol.
- Going with the grain or the flow
- When you go with the grain it is easy, go against it and you will get splinters!
- Know yourself, what you stand for and against and what motivates you and what does not.
- Example: large corporate workplace and yours truly!
- Two-Factor Theory or Hertzberg’s Motivation-Hygiene Theory: separate factors cause job satisfaction and dissatisfaction
- Motivators include challenging work, recognition and responsibility, doing something meaningful, taking or strongly influencing decisions, achievement and advancement, personal growth and so on.
- Hygiene factors include status, salary, fringe benefits, job security, policies and procedures and such like.
- Motivators are a pull towards, whereas hygiene factors are a push away.
- Shared values
- Values – what we stand for, what we believe in, how we do things and how we would like to be treated. They can include things like trust, honesty, respect, fun, independence, engagement, family, health, spiritual faith, etc.
- Understanding what your core values are: The Mind Tools Values Exercise
- My core values are now: trust, integrity, respect, curiosity & shared learning
- Story of the would-be JV partner
- Book ref: The Values Factor – Dr John DiMartini
We are holistic people, with a balance of thought and feeling, rational and instinctive and also flexible and immovable. We therefore need to recognise all of the various dimensions that we are, that others are and the environments that we operate in are too.
Know our core values and our purpose and stick to these like a rock…although these can still change, they should only change rarely and slowly.
With the rest, the how to, the where, and quite often, also the who with…these can change more quickly if necessary.
Perhaps, I can let Seth Godin sum it up a little better than I can, taken from his short book called The Dip:
"Quit the wrong stuff. Stick with the right stuff. Have the guts to do one or the other."
Talking about doing the right stuff…do any of these approaches appeal to or resonate with you?
- You are looking to find property investments that can produce high income returns on your cash investment relatively passively. This is what is known as high-yield BTL.
- You are looking for ways to make your investment fund work harder for you so to achieve your financial goals through forcing the appreciation rather than sitting and waiting for natural house price appreciation. This would be better known as the Buy-Refurbish-Refinance or BRR model.
- You are looking for projects where you can realise added value in a property investment or mini-development to be more active and turn out some decent lumps of cash in a relatively short timeframe. This would be more commonly known as Property Trading.
Maybe all of the above?
If you found yourself nodding to at least one of these points, then you really should check out my new Property Deal Tips service.
In the last week, we shared the following property projects:
- A lease extension project, which is largely a paper exercise, that produced a staggering £21,000 plus flip profit or a 57% Return on Investment BRR based on leaving less than £4,000 of your personal cash invested instead. The catch…you have to wait two years to extend the lease, but you get to rent the property out whilst you wait.
- If you prefer the lumpy money of property trading, then we also shared two flip projects in Salisbury, where one had a projected profit of £60,000+ and the other nearly £90,000 profit – both realisable in around 9 to 12 months. Income replacement anyone?
- We also had a few solid BRR projects with between 10% and 13% return on investment on cash funds left in to share.
The subscribers to my Property Deal Tips Service saw all of these projects and could pick and choose which one suited them and their situation the best if they fancied, whether BTL, BRR or flip projects...all with at least a 10% return on investment (ROI).
I have a limited number of subscriptions open at what might surprise you as the subscription price for such great property deals. Right now the subscription is set at £97 a year only, but for how long I can’t say.
If you consider for a moment that it takes around 45 hours to locate deals like this, or alternatively you can pay a deal sourcer around £4,000 on average, you would be wise to check it out wouldn’t you?
Oh…you will also be helping me to fund the operations of The Property Voice at the same time, so you can also feel like you are helping to keep this resource going, whilst also having the opportunity to snap up a great returning property investment in the process.
So, we all win, don’t we?
Just head over to the new Property Deal Tips page and just sign up: http://www.thepropertyvoice.net/propertydealtips/ I would love to see you join us!
Ok, in closing for today, you can of course email me email@example.com if you want to talk about anything from today’s show or more generally in property investing. Also, the show notes will be over at the website www.thepropertyvoice.net
But for now, all I want to say is thank you very much for listening once again this week and until next time on The Property Voice Podcast…it’s ciao ciao.