As it is the start of January 2020, I have decided to change my strategy when it comes to property developing.
Instead of searching high and low for the perfect property (rental number 5 again…), I am going to increase the volume of properties I view.
This will give me valuable experience and help improve my understanding of the property game. Talking to estate agents and building relationships will also improve my property development prowess – at least that is the intention.
The more I get into self-development, the more I realize that action is the order of the day. It is ok gaining knowledge and setting goals but without putting the lessons to use, it won’t help you get to where you are going. I forget where I have heard this quote (probably Tony Robbins) but it is definitely worth passing on: “Knowledge isn’t power; Knowledge is potential power.”
Looking on right move and going to the odd property seminar has only got me so far. I am ready to buy more properties but I am not putting myself out there enough.
The new target is to make 20 calls per week relating to property. This could be to arrange a viewing, or speak to a letting agent regarding rental demand in a particular area or anything property related. If you are a serious property investor this figure probably seems pretty low but it is more than my 1 or 2 calls a week so it is a step in the right direction.
This idea is similar to a salesman / or saleswoman increasing there sales calls. I have read a few interesting self-development books and sales are very important in both business and property. Two areas that I need to improve on.
One of the sales books I have read is Go for No (R. Fenton and A. Waltz) and this is a book that has influenced my new quantity strategy (increasing the volume of my sales calls if you like).
This book is all about changing the meaning of rejection and getting to a place in our heads where it empowers us. Instead of avoiding rejection, it is about making a decision to seek rejection and to actually Go for No!
I don’t think I will actually target shit loads of No’s but I get the message of the book and it has helped the way I respond to a bump in the road. The house that fell through only last week didn’t bother me and I moved on. If I make 100 calls (for rental number 5) and get no joy, I will move on and won’t beat myself up.
My gut feeling that rental number 5 will come before I make 100 calls and I have had a little bit of joy this week with a flat.
The flat is up for £55,000 and I bid £45,000. After doing my calculations, the ROI (Return On Investment) was 20%. That is if the offer was to be accepted.
I have received a call from the estate agent and the vendor is willing to accept £48,000. Although this would mean the ROI falls below 20%, it is still an excellent return and way above the interest I would receive if I left my money in a High Street Bank (in and around 1%).
This time round I have even factored ground rents and service charges into my calculations. See if nothing else, I am learning as I stumble towards my 5th rental. In previous years, I would have bought a property without doing any calculations and I wouldn’t have thought about factoring ground rents and service charges prior to making a bid.
In summary, I recommend you read the book I have been waffling about – Go for No. If you are into self-development and read a few books, put what you have been learning into action and hopefully you will go from where you are, to where you want to be.