Recently I was invited to speak at a Property Investor Club to share my story and to share what it takes to build a million-dollar property portfolio. My presentation was well received by the audience so I wanted to share it as this may help you with your own property investing journey.
In my blog today I will share the ‘rules’ I play by in my property investment business. In my next blog I will share Part 2 of my presentation where I talk about the Strategies and Financial Concepts that I follow and I advise clients in my daily work.
Property investing is just like any other business and should be treated with as much diligence and careful management. Property is an enabler of creating wealth and an enabler of achieving true financial freedom, but only if you play the game right..!!
Here are my ‘Rules of Play’…
- Simplicity. I only ever invest in what I know and what I understand very well. For me, that’s residential real estate. I understand what drives value and what influences property prices to move through the investment cycle.
- Mindset. I work very hard (daily) to ensure that my brain is injected with the right positive content. This includes the books I read, the CDs playing in my car, the people I surround myself with, and the Advisors whom I take advice from. To create massive wealth through property you need the right mindset.
- Purpose. Having a clear purpose keeps me motivated and keeps me driven to achieve more. Not just for me, but for my family and for the people that matter most in my life. If you have purpose, the daily journey becomes more enjoyable and rewarding.
- Give to get. Are you giving or just taking? I am fortunate to own a business where I give a lot of my time, my knowledge and my expertise. In turn I am rewarded with many loyal clients and many referrals through raving fans about what I do. I also like to give to those that are less fortunate (such as the homeless). The pleasure I get back is priceless.
- Beat to the march of your own drum. I buy property to hold long term, I buy property sites to develop and create more wealth. But I only ever borrow within my means and within my capability. Beating to the march of someone else’s drum is fraught with danger.
- Limitations only exist in your mind. The impossible is only in your mind. As humans we can achieve anything, if we believe we can. I continue to set goals that stretch me, as I find this to be the most effective way to continue to grow as a person. The mind is your most powerful organ and your most powerful weapon too.
- Invest in relationships. Relationships are everything to me and I couldn’t put a price on them. Sound relationships will get you through anything in life, including the ups and downs that comes with property investing.
- Emulate successful people. Why reinvent the wheel? I like to emulate those that have achieved great things in life and those that inspire me to achieve even bigger things. If you know what you want, why not emulate those that have already done it. If you want to know how they did it, just ask them. Simple!
- Be patient. Property is a long-term proposition. The best period to hold property is “forever” (unless it’s the wrong property). The only way to achieve massive wealth through property investing is to benefit from compounding growth, and to achieve this the magic ingredient is ‘time’.
- Know your number. How much passive income do you want without having to exchange your time for money? And what does your balance sheet need to look like to achieve this passive income? As the saying goes, if you aim at nothing, you’ll hit it every time.
- Enjoy and have fun along the way. If you’re not having fun, then don’t bother. Stress is unhealthy and will take years off your life. I love what I do with a passion, and property investing is a game which I love playing… daily.
- Challenges are inevitable. At any economic level, and at any age, challenges will come your way. How you deal with challenges is what matters most. I have learnt to accept challenges but I have also learnt strategies on how to deal with them and who I can turn to for help.
- What got you here, won’t get you there. If you want a different result, you have to be prepared to do things differently. I learnt this valuable lesson 11 years ago when I went through a divorce and took a financial set back. Today is a very different picture!
Property and taking on Debt is a very powerful vehicle to create wealth, massive wealth. But, in the wrong hands it can be just as destructive.
I have seen many smart and intelligent people achieve very successful careers, but have limited their wealth as a result of not focusing on what’s necessary to achieve their wealth goals. A high income does not necessarily mean a high net worth. You can’t save your way to wealth. You can only create wealth by investing in the right assets. For me, that’s residential property.
The most common issue I see in society is people not taking action. You’ve heard me say before… “It’s the start that stops most people from achieving the financial success they want and that they deserve”.
The above rules will hopefully inspire you to take action or at least remind you what you already know. Remember this… It’s not what you know that matters, it’s what action you take with what you know that counts!
Disclaimer: The Information is general in nature and does not take into account your particular investment objectives or financial situation. It does not constitute, and should not be relied on as, financial or investment advice or recommendations (expressed or implied) and is not an invitation to take up securities or other financial products or services. No decision should be made on the basis of the information without first seeking expert financial advice. Your full financial needs and requirements would need to be assessed prior to any offer or acceptance of a loan product. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.