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Intelligence is no way to make serious money....

12-15-2016

PropertyInvesting.net team

More objective guidance and insights for property investors. Our aim is to help you improve your investment returns, flag key risk areas and stimulate strategic thought so you can position your portfolio to maximize gain, for our five thousand website visitors a day and the thousands of people signed up to your Newsletter. This Newsletter cover one key topic:

Intelligence is no way to make serious money

Work Ethic: This article is dedicated to all those hard working property investors out there. Well done and we hope you are making fabulous wealth.

Its Not Education or Qualifications: When people wander how a person makes serious money, they often think it’s because they are very intelligent or have an excellent education – they are very wrong. To make serious money, this is one of the least important traits to have. Let’s explain.

Property Investors Traits: By far the most important trait of a successful property investor is to be action focussed and hard working. Very successful property investors tend have the following key traits:

· Discipline in their work ethic – and hard working

· Financially disciplined

· Action focussed

· Entrepreneurial

· Highly motivated

· Not shy to take risk

· Persevere and don’t give up

· Obsessive about property – view it as a hobby and a job

· Like to build properties, portfolios and wealth

· Ability to learn from mistakes, move on and improve

· Positive can-do attitude

· Good at managing risk

· Creative mind when identifying and maximising an opportunity

· Ability to get on with tenants, builders, estate agents, letting agents, solicitors, banks etc

· Legal and financial attention to detail – identifying issues and opportunities

· Savvy at identifying an opportunity – creative on how to build wealth

· Knowledge of socio-economic factors driving rentals, house prices and supply-demand

· Healthy – not taking drugs or drink excessively – both thinks that demotivate and destroy wealth

No Silver Spoon: What you don’t really need is excessive monetary wealth to start property investment – it’s more a case of starting small and building up gradually but as quickly as possible. Not being scared to get yourself out there and take a bit of managed risk.

Its Not About The Higher Education: If you go to a property seminar – you probably wont bump into anyone with an Oxbridge education. Very few will have First Class degrees from top universities. Very few will be super rich – upper class people. Most will be fairly down to earth – fairly ordinary folk. Yes, they might drive up in a Ferrari, but that will be because they have worked hard and take big risks and done some big deals. You wont find these people down the pub every night – instead they will be driving around looking for the next property deal or planning their next acquisition.

Start From Scratch: Many property investors did not go to college – many were immigrants that came to the UK and were unable to get good jobs – so they tried their luck at property investment instead. They built up empires from a very low level. They did not have silver spoons in their mouths.

Motivation Key: Many were highly motivated – wanting to prove their doubter wrong – proving a point. After all, someone going to a top University getting a First Class degree does not necessarily become fabulously wealthy – and its normally easier getting wealthy through property.

Canny Not Intelligent: The canny property investors has also rationalised that – even if you are Einstein – it’s almost impossible to make a million from stocks and shares, and the easiest and safest way to make a million is through property investment. So many people have done it and it’s a well mapped route.

Likeable Subjects: Property investors tend to be fairly knowledgeable about what drives the property market – things like:

· Housing supply and demand – demographics

· New business and business closing in their areas

· Up and coming hotspots in their investment areas

· New transport links, developments and improvements

· Interest rates, inflation expectations

· Unemployment and employment levels

· The state of businesses and the public sector in their areas

They are on the look out for clues to whether property prices will rise, interest rates might change and rental and new build supply-demand may alter – all things that effect their business and alter their investment perceptions.

World Politics - Don't Bother about It: What they will be less concerned about will be world politics, disasters and wars far from where they are investing and the general negative churn of social media – like Facebook, Twitter, Instagram. They will have rationalised that whilst everyone else is wasting their time on social media – they will be beavering away making millions from property – building, land and rentals. The will be focussing their attentions on buying low and selling high, trying to locate a pocket of land to build a low cost home on or other scheme to make serious money. They will delight in any opportunity to build their property wealth.

Brexit Distraction: A classic example of how one can get consumed and sucked into a negative thought process that destroys value is "Brexit". All the lead up to the Referendum then post vote panic, worry and distraction - hyped up by the media. Meanwhile, serious property investors were out there making serious money. They are likely seizing buying opportunities right now. The look at the fundamentals - like supply and demand, plus employment growth - rather than today's global news.

Drugs: One thing property investors just don’t get involved with is drugs. Anyone that even occasionally takes drugs for social reasons is an accident waiting to happen. They will almost certainly be de-motivated. Drug alter the chemistry of your brain, close the “happy ends” and quickly make people permanently depressed – often suicidal. It would be almost impossible for someone taking drugs to be successful in business.

Health: If you are fit, get plenty of exercise, eat well, don’t drink excessively and never take drugs – your physical and mental constitution will be strong and you will be able to handle more stress, more risk and enjoy life whilst investing heavily in high risk/high reward ventures. They say fit in body, fit in mind – and its true that you will be able to handle far more stress is you lok after your body. It takes years to build wealth in a sustainable way – so no use getting ill all the time – it will definitely set your investment plans back in a big way. Banks, builders and professionals like solicitors that need to get paid – will not want to deal with a person if they are regularly ill and look at risk of making payments.

Payments: A few things its vey important for property investors to do – to make sure they keep their stakeholders happy:

· Always pay builders on time - as soon as the work is done – the day the work has been done (e.g. not weeks later) – builders often work from “hand to mouth”, their finances are often stretched with buy materials and they get completely (and rightly) stressed out if they have to worry about being paid

· Always pay solicitors, accountants and other service providers on time – put yourself in their shoes – do they want to worry about ever being paid – do they want to report late payment to their bosses?

· Always pay mortgage payments on time – never default a payment – this will do massive damage – the bank may ask for all of their money back at any time

· If you are going to make late payments, if you absolutely have to, its best with things like council tax, utility bills, services charges (but not ground rent) – since you will normally get a reminder, but council tax normally gets a court summons within 6 weeks so be careful. Best to just pay all bills on time. If you have to be late paying bills – it means you are too stretched and your business is not going well. You might need to re-think things.

· Just on ground rent – if you default on this – you can get into serious trouble since the Freeholder can try and cancel your leasehold agreement. Always pay ground rental payments on time!

Successful Property Investors - also understand the power of financial leverage. They understand that:

· Banks will happily lend against property because it is a physical valuable asset that can also be repossessed and is hence lower risk than most investments

· They can borrow high levels of debt against property

· They can then leverage the power of debt to make equity

· As inflation rages away they get more wealth as the true value of debt declines whilst asset prices rise

· The chance of a prolong bout of deflation is minimal as central banks print currencies, keep interest rates abnormally low whilst reducing the value of the currencies – the so called “race to the bottom”

Obsessions: When a property investor goes to a diner party, they get others complaining that they work really hard, find problems paying their bills and blame everyone around them – victims – for their misfortunes. Whilst a property investor takes responsibility and strives to gain financial control of their lives – they don’t blame others – they focus their positive attentions on seizing good money making opportunities and managing the risks around their ventures. It’s a very different type of psychology and way of thinking.

Property Investors Thought Processes:

· Always on the look out for a bargain or opportunity

· Exciting when talking about making serious money

· Gets energy out of making wealth and growing a portfolio

· Loves taking about property and house prices

· High energy, thoughtful taking calculated risks

· Takes ownership of negative outcomes

· Learns quickly from mistakes

· Does not blame others

· Respectful of those around him/her

· Not arrogant – know what it is like to have no money – does not take things for granted

· Does not like an “entitlement culture”

· Does not play the victim

Defeatist Thought Processes:

Someone who does not invest in property, may be very highly educated but say works in the public sector or expects a job for life as an employee – would often have exactly the opposite traits – we have switched it around - namely:

· Never on the look out for a bargain or opportunity

· Never exciting when talking about making serious money

· Never get energy out of making wealth and growing a portfolio

· Hates taking about property and house prices

· Low energy, not very thoughtful, never takes calculated risks

· Never takes ownership of negative outcomes

· Never learns from mistakes

· Blames others

· Is not respectful of those around him/her

· Is arrogant – does not know what it is like to have no money – takes things for granted

· Likes an “entitlement culture”

· Plays the victim

Do you know that person? You must have met them many times – they frustrate you and waste your time. Its best to avoid these types of people and mix with like-minded people – property investors or other business types that share similar values.

Knowledge Not Education: For all those people who have not got a super education – don’t worry – you don’t need to be particularly intelligent to make serious money. You just need to have the right mentality and traits. Obviously reading around the subject and self-learning will help enormously as well. For most people, there is really not much that should be holding them back from making serious money from property.

We hope this Newsletter has provoked some interesting thoughts and helped give you some insights and understanding as to why you are property investing, and also why you might be quite good at it. If you don’t score highly on the property investors traits – you will probably not be reading this Newsletter in the first place – and you will be eager to learn more which is always good in life. If you have any queries, please contact us on enquiries@propertyinvesting.net

 

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