It’s a numbers game has come up on a property course I am currently on. The training is Deal Sourcing with Simon Zutshi (Deal sourcing).
With recent property purchases, I have stuck to this strategy. But with rental No.5 I took it a bit too far (Rental No.5).
Before finally getting a deal over the line, I had viewed over 100 properties. This was because I was obsessed with BMV (Below Market Value).
I did eventually get a house BMV, but it took too long. And this is part of the reason why my progress has been slow. Or you might say average.
Learn from my obsession with BMV
It is ok to look for BMV, but don’t become obsessed by it. Look for the best deal that works for you and the seller.
This win win scenario is what is taught by the experts. Getting rental No.4 and No.5 I was obsessed with BMV and was only thinking of myself. This led to average results.
Things have changed and I am now thinking of the win win scenario. I am looking for a deal that works for me. But I am also thinking about the needs of the seller.
With this new way of thinking, I won’t have to view 100+ properties to secure a deal. My latest purchases have been much smoother. Finally, experience is kicking in.
I might not get properties at 25-30% BMV. But I might get 5-10% BMV that works for the seller. It works for the seller because I am a credible property investor who can get the deal done quickly. This is important if the seller needs a quick sale.
A plus point of viewing 100+ properties was that I got comfortable with the word NO… This reminds me of a book, Go For No (Richard Fenton and Andrea Waltz).
GO for NO with the numbers game
This is a fictional book about going one way or another. About a salesman who could have went one way or another.
The main character is a salesman called Eric.
It is about 2 alternative outcomes. Eric who just done enough. Who just made his weekly quota (or weekly sales). And Eric who went the extra mile.
After banging his head, Eric black’s out.
We’ll call the 2 outcomes 1) Abundant Eric and 2) Scarcity Eric.
They are both the same person. They make the same sale at the same time. But Abundant Eric really listens to what a customer said after an $1100 sale: ‘The salesperson never decides when the sale is over; the customer does. The customer goes on, ‘Eric, your fear of hearing the word ‘no’ is the only thing standing between you and greatness.’
After this encounter, abundant Eric has a light bulb moment: “I realised that failure was the halfway mark on the road to success, not a destination to be avoided but rather a stepping-stone to get where I really wanted in life.”
The next 10 years are very different for the 2 alternative Eric’s. Scarcity Eric continues as struggling salesman. And loses his job. Abundant Eric become a successful businessman. And has published many books on sales and business.
Personally, I have mainly been like scarcity Eric for most of my adult life. I have always had a fear of failure. Until the last 2 years. Since becoming obsessed with self-development, I am getting more and more comfortable with failure.
And I am getting comfortable with the word NO. Like viewing 100+ properties and hearing a lot of NO’s. It had little or no effect as I pushed on. And I finally got rental No. 5 in September 2020.
Abundant Eric learns not to take rejection personally. He realises it’s a numbers game and pushes on anyway.
If you are like me, you will have experienced a fear of failure. It will have crippled you in certain situations. What I want you to do, is let Abundant Eric’s words sink in: “Successful people fail eagerly while failures avoid failing. The whole point of becoming willing to fail more is to become a success, so that one day you won’t be forced to look back on your life and say to yourself, ‘I’m a failure’.”
What to do …
Go For NO …
Read this excellent book and try to apply it to your life. At least you’re professional life or business life.
If you are looking to get into property. View some properties. And make some bids. Put some low offers in and get comfortable hearing the word NO.
Don’t take the perceived rejection personally. Don’t get emotional. Dust yourself off and go again. Go and see some more properties and make some more bids.
If you get comfortable with the word NO, it is a form of self-preservation. It takes the pressure off and you can make the number game work for you.
After re-reading this book, I will be going out and getting more NO’s. I will be making more calls to estate agents and landlords and getting more deals. I have been too comfortable for too long. And it’s time to up my game.
Book of the week:
Go For No, by Richard Fenton and Andrea Waltz. Go for No is about getting comfortable with the word NO. Getting comfortable with failure. And realising that if you are not willing to fail, you are not willing to succeed.
For a hard copy visit the excellent Imagined Things Bookshop: https://imaginedthings.co.uk/