In this weeks episode, Billy and Paul discuss the Ten core mistakes that ultimately lead to failure in property. With over a decade of experience in business and property, both have had their fair share of obstacles that they’ve had to overcome, allowing them to recognise the pitfalls and challenges that those just starting their journey (and those already on it) will face.
LINKS AND RESOURCES
- ALG Property Academy.
- ALG Property Network.
- Property Protege 12 Month Intensive.
- Catch-up and subscribe through iTunes.
BILLY: Hi folks, how you doing? Billy Farrell here with Paul McFadden. Welcome to This Week In Property. Now, if you’re listening to the show, remember, if you go to thisweekinproperty.tv, you can watch the show live. We’ve even put subtitles on there, just to make it a little bit easier for you, and to be honest, I always prefer going and watching these things live because you can see the emotions, you can see the interaction, you can see the people behind the podcast, so thisweekinproperty.tv, go and check it out.
So, this week we’re gonna talk about something pretty important for you guys, we’re gonna talk about the ten core mistakes that lead to, ultimately, failure in property. We sat down before we recorded this show and we thought, ‘Okay, if there was ten things that people are not doing, or not doing right, or not following, or not implementing, ten mistakes that are being made, that’s causing, ultimately, failure, or on the flip side, massive success, what would it be?’, so we’ve listed them out, and in this podcast we’re gonna go over them.
So, if you’re just getting started or if you’re way into your journey already, listen carefully or watch because there’s a lot of good stuff gonna come out. So, Paul, why don’t we kick off with number one?
PAUL: Before we jump into number one, the key things that we both have come up with is that even if you’re new to investing, this is very relevant, because you can pick this up right now, and that’s gonna serve you well going forward. However, where I see this most common, the things that we’re gonna discuss, is with experienced investors, those who have already got the portfolio or already well within their property journey.
By observing those people, by having interactions, talking to many different people, and this is the key thing, is listening, asking key questions, and I find out that they’re doing some of these things. Maybe they’re not doing them right, maybe they don’t have the right focus on it, whatever it is. And if we do this right, if we get these ten key points, if we do them right, it’s gonna serve us well.
So regardless to where you’re at, we need to look and go, ‘Okay, how can we improve our property businesses, how can we actually stay focused and get a result?’
BILLY: And ultimately, I mean, we’re not playing with small things here, property. A simple mistake can lead to, you know, catastrophic results, if you want to put it that way. I mean, even you tell the story of your first property that you bought personally and how you done it wrong.
BILLY: Cause, you know, maybe you followed a wrong advice or whatever it was. But this is the problem, people don’t listen. If they make any one of these mistakes, it can take them out the game. Now imagine just getting this right and having a smooth path right to the finishing line.
BILLY: Essentially that’s what we’re offering here in this podcast.
PAUL: Of course, listen, if buying property was easy, investing in property, everybody would be doing it, right? That’s the truth of the matter. And there’s crazy statistics about the many buy-to-let landlords are out there, who are all panicking and worrying about the tax changes. Now, I don’t agree with tax changes, I really don’t. However, one thing I know to be true, is that there’s change. Change is always constant.
BILLY: It’s the one constant.
PAUL: Exactly. So with this in mind, I’ll look at it and go, ‘Okay, this is a tax concerns that I need to look at’, it makes sense to have a tax advisor that specialises in property to serve and support me, to make sure that they help me with the right tax advice. And then to plan, and basically plan to acknowledge all the stuff that’s happening. So the bottom line I’m trying to say here is that if you have, or if you buy right, you know what you’re looking for and following these ten points, then this stuff won’t be a concern, this stuff won’t worry you. And when people start to panic and worry, it’s the investors that are not investing correctly, not investing right.
So the first one is not having an investment criteria. And this is important, and it’s actually very fundamental we talk about your investment criteria. And all that means is that, when I talk about investment criteria, when you’re doing a traditional buy-to-let, there’s a few things that you want to, when we talk about making your own rules and sticking to them. There’s a couple of things that you wanna get right when it comes to your investment criteria and it allows you to make better buying decisions, better investments, better choices. And what we mean by this, if you’re looking for rental income, what’s the rental yield you’re looking to achieve?
What’s the monthly profit, after paying off all expenses, you want coming into your bank month after month from property? So that could be three hundred pounds positive cashflow per month from that property, once you have, you know, bought that property and paid off all your expenses each month? Now, if that’s your criteria, then stick to it. Now you’ve got an investment criteria to work for, you’ve created filters, so when property comes your way, whether that’s sourcing property, you know, through estate agents, whether that’s property sourcing bringing deals, whether that’s doing your different methods of lead generation to bring deals in.
You’ve got a set of filters to choose which investment criteria fits for you. Also within a buy-to-let point of view is what level of below market value are you looking to achieve? Now, it’s not always as simple as twenty percent below market value, which is drilled in to everybody’s minds. All different property education companies throughout the UK, seemingly, that’s a good deal. The truth of the matter is, it’s not always a good deal. Sometimes the BMV needs to be a lot higher, or the BMV, the below market value is irrelevant, because you know the end value of the property, we’ll touch on that in a moment.
So the other part is that if you’ve got a set pot of cash, twenty thousand, fifty thousand, hundred thousand, you might have no money, it doesn’t matter, but if you have some money to invest, or you’ve raised finance, you’ve got joint venture partner, whatever method you’ve got finance, is that if you do it right, that money, that one deposit can roll into a second property, a third, a fourth, sixth, tenth property, if it’s done right. However, not having your investment criteria set right, opens it up for that money to soon disappear. And what I mean by this, are you facting in the numbers, that you’re looking to get all of your money out, after six months, when you refinancing property, that forces you to buy right in the first place, make sure you know the numbers, refinance, get all your money out to go again, or, how many months are you happy to leave your money in a deal?
So let’s say you refinance after six months, and you pull out most of your money but you leave a few thousand pounds in. And that positive cashflow you’ve got month after month, how many months will it take till you get all you money back out the deal? Now could that be twelve months, twenty-four months, whatever it is for you in terms of your investment criteria, let’s say you say, ‘I want all my money out within twelve months of positive cashflow once I’ve refinanced’. If that’s the case, and a deal comes your way, where all your money doesn’t come out when you put it in your spreadsheet or you work out numbers, all your money doesn’t come out until eighteen months, then you don’t buy the deal, you don’t buy that property, because you’ve set your investment criteria, and the amateur, they will go and go for that, because they think, ‘Oh, it’s only eighteen months’, but the truth of the matter is, that cycle leads to, ‘oh, its twenty-four months, it’s thirty-six months’, and then before you know it, you’ve depleted that pot of cash that you’ve got there and you wonder why you’ve hit the brick wall and you can’t go again.
And again, I mean, there’s many different investment criteria’s been set and we go into a lot more detail about this in Property Protege, that’s key, but you just want to make sure that every investment criteria is set, but one other one that I want to touch on just now, is if you’re gonna do a buy to flip. You’re buying property, adding value and you’re selling. How much profit so you want to make out of that deal? Are you factoring all the associated costs? Is is fifteen thousand pounds, is it twenty thousand pounds that you want to get when you sell that property?
And if it is twenty thousand pounds, if a deal comes along that’s only gonna make you twelve thousand pounds, then it doesn’t mean you go for that deal. If your criteria is twenty thousand pounds, then you wait for that investment to come up, but too many amateurs, they break their own rules, and then wonder why their investment pot shrinks, they wonder why their capacity is being reached, they wonder why they’re not getting multiple deals, and it’s because they’ve not got their investment criteria set from the outset.
BILLY: So you need to know your investment criteria. You need to know what you want to get out going in. And you said something I just want to elaborate on. Make your own rules and stick to them. Can you explain what that means?
PAUL: So just like I’ve said there about having set investment criteria, to really hit this point, well, if you say that you want three hundred pounds positive cashflow per months after paying off all expenses, then what you want is that when you’re filtering through your deals that are coming your way, anything that falls shot of that, you don’t take.
BILLY: It doesn’t meet the criteria.
PAUL: It doesn’t meet the criteria. And that means, if it falls five founds short, come on. The only reason why you would take that investment is if you come from a place of scarcity. And what I mean by this is that you believe the that’s the last deal you’re gonna get. Or you won’t get anther deal like this because its been two months since your last deal.
PAUL: There’s something you’re not doing right, if you only get one deal every couple of months. There’s something you’re not doing right if you’re having to settle for a deal.
BILLY: So people settle.
PAUL: People settle.
BILLY: I had, sorry, I had Alex Summers, one of the Platinum guys here thus morning chatting to us.
BILLY: And Alex was saying he’s just amazed by the marketing. Because despite his own initial misconceptions about marketing, what he’s now realised is, it works, just do it, simple as that. And now Alex is doing deal after deal after deal, and it’s brilliant, because he know knows that his is the strategy to follow and he does it and the results come by.
PAUL: It’s great. And we change people’s mindsets a lot and that’s one of the points we’ll cover later on, and if we get the mindset right, you know, we’ve said to everybody that comes on our Protege mentorship, we tell them, ‘Look, you should not be active, even though you’re only looking to say a handful of properties, we want to change your mindset, so you’re gonna be doing hundreds of deals, because if you have that mindset, you’ll be strict too your investment criteria, and it means you’ll be disciplined that you’ll look for the right type of deals.
If you can’t find the right type of deals, in my experience is always, you’re not fighting, you’re not positioning yourself in front of the right type of properties. That’s the challenge, that’s the problem. Because I see an abundance of right deals, but if you’re not fishing in the right marketplace, then you’ll never gonna see those. So if you come from place of abundance, as in, you know there’s gonna be many deals, and if that one doesn’t fit your investment criteria, you package it up, sell it onto another investor and trade that property.
BILLY: And what I was actually getting at with Alex is that he initially thought there’s wasn’t gonna be a lot of deals. But now that his marketing is working and now that he’s actually working it, now the deals are coming in.
PAUL: Of course.
BILLY: So initially he may have jumped on another opportunity though a scarcity, or through a belief that there might not be enough, but now that he knows that there’s more than enough out there, there’s an abundance, if you follow the system, which is something we keep hammering home, then the deals are there. So you don’t settle, you know your criteria and you go for it. So, principle number two, along a similar way, but there is a key word – focus. Focus, focus, focus. It’s one of the most important things we talk about at Protege, at Platinum, at the podcasts, no matter where we are and what we’re doing, you must have a specific focus. So, let’s talk about focused on your strategy, number two.
PAUL: Focus is our favourite word, isn’t it?
PAUL: But the challenge is with focus is most hardest thing to do.
PAUL: It’s so difficult. You know, our attention span sometimes is just so short, that we’re getting pulled left, right and centre marketers are trying to market to us every single day from the moment we wake up.
BILLY: And we’re good at it.
PAUL: And they’re getting better. And with this is mind, it’s difficult for people to focus. And that’s the challenge, especially when it’s property-concerned, because, I mean, most people who want to get involved in property, if you’re just trying to get involved in property cause you want a quick fix, this is a wrong business altogether. If you’re just looking to come in and make a quick hit, now, don’t get me wrong, if you buy right, you know what you’re looking for, you’re dealing in property, so dealing wit property is not a couple of thundered pounds, it’s tens of thousands of pounds if it’s done well and it’s done right.
The challenge is doing it right. But the idea here is that if people who are getting involved in property, the real players, the people who are serious, are the ones that are not gonna get into property just for a season, they’re gonna be in property for a lifetime, right? With this is mind, we’re talking about heaving a focused strategy to start things off.
PAUL: I always say this, I always ask the question, you know, what would you rather have? Would you rather have a business at the end of the year, after twelve months, that you have built up a six figure business, you’ve done a hundred thousand pounds in twelve months, but you’ve had so much internal chaos and external chaos, you’ve been jumping from one thing to another thing, you’re doing this, you’re dong that, you did multiple different things, you just hadn’t mastered any, but you make a hundred grand.
God knows how but you make a hundred thousand pounds, right? If you’re one of the lucky ones, one of the few, you’ll make it. But the external and the internal chaos is never worth it. You’ll look back over the last twelve months and go, ‘All that chaos, I need to live that again’. Sacrificing family time, quality of life, you know, fitness, you know, health. The works.
BILLY: It’s not worth it for a hundred grand.
PAUL: It’s just not worth it. And not, for sure. And you need to go and do that again year two. What we teach differently, is if you’re in property for the long term and the long game, is that let’s master one or two strategies, one short-term, one long-term, or two short-term strategies. That’s it. And the reason with short term strategies is that it brings an instant cashflow, brings money into the business, and every single business, not just property, any business needs strings cashflow.
So with this in mind, i you’ve got one short-term, one long-term, or two short-term strategies, then you’re allowing yourself to master a couple of strategies at most that complement one another, so you’ve got that soul focus, and if you do tag cover the next twelve months, you build top the business, you’re doing the things that are relevant to those strategies, you’re stating focused, you’re not letting yourself get deflected and pulled off the other marketers agendas and now ways.
BILLY: Old ways with new titles.
PAUL: Yeah. Unfortunately, there’s a lot of good education companies out there, property specific, however, too many who just teach education, not doing deals themselves, they’re looking at, how can we sell more courses, so they spin a new topic and a new title, that those who can’t stay focused, will then go and jump over and invest in, and see that it’s nothing other than smokes in mirror.
But when we look at if you actually master the, you know, a shirt-term and a long-term strategy, over the twelve months, what happens at the end of it, is that, wait a wee minute, you’ve got a focus, you’ve made a hundred thousand pounds and you’ve actually got a map of how you’ve done it.
PAUL: And you realise that, wait a wee minute, I’ve got no external chaos, I’ve got no internal chaos, I’ve stayed focused, I know exactly what’s worked, I know what income it’s given me, and I know that if I go and repeat that next year, but I’m more educated, more knowledgeable and I’ve got more experience, I’ll actually get a bigger result. That to me is what I always ask, what would you want? Do want to live a life completely out of chaos, or do you want to have clarity and focus, so you get the results?
BILLY: Absolutely, it’s so important, and people don’t. Here’s a problem, marketers know you better than you know yourself and we’re good at it. I say we because that’s exactly what I do. My role is to know people in such a deep level, that I can reach them and help them, but not all people are guided by the same morals and values that we maybe, you know, work with, so you need to focus, you need to know your criteria, number one, and then you need to focus on a specific strategy.
Now, when you say two short-term strategies, that’s two short-term strategies that complement each other. Because the man that chases two rabbits catches neither. Jack of all trades, master of none. We’ve all heard of this stuff. You need to be focused and keep your eyes on the prize.
PAUL: A quick example of the, Billy, two short-term strategies is trading property and buy-and-flips. So you buy property, add value and sell, with your own investment criteria. The ones that don’t fit your investment criteria, you don’t buy and flip those, you trade and sell the properties and make a fee.
BILLY: Because it will fit someone else’s criteria.
PAUL: Of course.
BILLY: Perfect, okay. So that’s number one and number two. Number three – knowing your gold-moire area.
PAUL: Well, this is another big difficulty as well for a lot of people is that they’re trying to make every area work. They believe that they’ve heard someone say that this is a new hob city to invest, this is a new area, they hear somebody else getting a great deal and they believe that they jump over there. So the idea of the gold mine area is that sure you can listen to what other people say, you know, industry experts, and more importantly, look at the market trends and see where is good to invest.
Now we talk about finding your gold-mine area and what a gold mine area needs to have to make it a gold mine area, but the key part what we mean here is that it’s to help you understand market values, is to help you understand and see investment opportunities, because if you try to master all these different areas, then you’ll never become the master of any. And if you start at the beginning with a small gold mine area, especially if you’re targeting your marketing, you become the authority there. You become the go-to person.
And within that gold mine area, the idea is you want top dominate, so it means, everybody’s coming to you with that business as local expert.
BILLY: You’re the guy.
PAUL: You’re the guy or girl. And with this in mind, you can turn around and a property comes up, and it’s x type of property in this condition, you know straight away the market value, because you’ve got that knowledge. And once you start your gold mine area, it’s a couple of miles radius, you want to expand that to five miles, ten miles, and then within there you can really dominate with everything I’ve just said there, that it means that you actually understand the market, you can see those hidden gems that come online if it’s getting marketed through an estate agent, or if you’re doing your own marketing.
BILLY: Brilliant. So you know your criteria, you know the strategy you’re gonna focus on, you know the area you’re gonna do it in, the next big problem is due diligence. Number four – due diligence. Most folk don’t do their homework and what happens?
PAUL: Well, what happens, they loose money. This is where people loose money. This is where, if you don’t have an investment criteria set, they don’t understand their gold mine area, they’re not able to asses a property, look at, you know, any issues on evaluation or survey, you know, they don’t know the market itself, they’ve not got knowledge with estate agents and letting agents, you know, they’re not working the eight key principles of property investing, which we talk about in Protege.
Not having this knowledge means that they could do the wrong due diligence, not knowing the numbers, which is crazy, some things as basic as knowing the numbers, right? That’s part pot due diligence, it’s knwoing the right type of refurb, the end value, what’s, you know, adding in all the extra expenses that could be counted for and then what’g gonna be the profit, whatever the strategy may be that you’re doing. You’d be amazed at how simple that would be, just to know the numbers, however so many investors, they don’t master the numbers, they don’t do the right due diligence, they don’t understand the end values, they don’t do the right due diligence, they don’t understand the market trends, they don’t even understand the gold mine area, and because of all this, the compound effect on any of those little tings is you’re gonna loose money.
You’re not gonna make the same money that you’d do, and because that you’re so convinced you’re gonna make x-amount of money and one of those steps are wrong, and you actually loose a bit of money, or you don’t get the same profit you thought you’re gonna get, that can take people out the game. That can be one of those ones, ‘Oh, I tried that, it never worked for me, I’m never gonna do it again’, and you’re that person that’s negative influence on everybody else who’s thinking about getting involved in property.
PAUL: In fact, a funny comment. Funny comment. A free d of mine from school, me and him in the early days, we’ve got involved in property together.
BILLY: I saw this on Facebook the other day.
PAUL: Yeah. And we got involved in a property together.
PAUL: And I kid you not, it was his first experience, it wasn’t mine. It was a property that if anything could happen, it happened to that. The purchase was perfectly fine, then the boiler went, the tenant wrecked the place. I mean, you get into property with your eyes wide open on all this stuff. We talk about mitigating risk, but lost of issues happened. And for him, now for me, I’m like, this is part of the parcel, we got it at a great price, all this kinda stuff, we’ll just deal with it, but too many things happened that he freaked out, he wanted out.
And his comment on Facebook was, that property, you know, was enough for him never to get involved in property again. And my response to him was a bit of tongue in cheek, saying, if that was anybody’s first experience, I can see why. But the truth of the matter is that, that would always happen and if it does, it’s your mindset how you approach it, and ether’s ways and means to sort this kind of stuff.
BILLY: Sometimes you need to kiss a few frogs, right? So you need to do your homework, so we need to know what criteria, we need to know our investment strategy, we need to know the gold mine area we’re targeting, we need to know how to do the right homework, the right due diligence. I always remember watching the Dragon’s Den years ago when people would come in and the dragons would say, ‘Okay, so what was your turnover last year?
What was your profit?’, and they’ll just be looking at the dragons like, what? It’s like, guys, where’s your brains? Come on, right? If you don’t know the numbers then how do you know when a deal is a deal? So these things all have to be in place. And then, you need the right support network, the right power team backing you. That’s number five, let’s move on that.
PAUL: Yeah, so with this here, especially in property specific, is that you can’t do all of this on your own. You really can’t. If you try do it on your own, then you’re in for a hard battle. You’re literally gonna be fighting upper challenge. You’re gonna be trying to climb that mountain with no guidance and support. And when we talk about your power team, we’re talking about who’s your finances, who’s your mortgage brokers, your solicitors, you know, your bank managers. There’s many different people you’d have in your power team.
Your investors, you know, joint venture partners, private funders, you know, all these different people make up your power team. And your power team are not people who you’re trying to hammer down the best possible price, you know, the letting agents, the estate agents and all this kinda stuff. Your power team are there and you want the best people. I always refer it back to football. So you’ve got Barcelona, arguably the best team in the world, although, you know, they just got beat against Juventus there, but the point is, is they’ve got great players.
They’ve got all, they’ve up front, they’ve got Messi, Suarez, Neymar. Now, if you’ve got all these people up front, that’s a powerhouse of a football team. Now, if any one of those three players are strikers, don’t score goals, not creating opportunities, one of them would be taken out, maybe sold off to another team, or put on the bench until they get better. The idea is with your power team, you want the best players in the field and you pay for what you get. So the idea is not to try and, you know, scrape on, you know, to try and get the cheapest service because that’s not always the best.
You’re looking to try and get the best service, the best quality, we’ve done a full podcast in this week in property, all on your power team, which I’d encourage anybody who’s interested and really focusing on that to get back and look at that, but the point I’m making here is that too many people try to go on this journey themselves, don’t have the right support network and if they do try and get these people, they try and go for the cheapest price rather than the quality.
BILLY: Mhm. And you know what? See, when you cheap out, you have only got yourself to blame when it goes wrong.
PAUL: That’s right.
BILLY: You’ve only got yourself to blame because that’s what a lot of people do, they’ll go cheap. So, great, so, first of all, people don’t know their investment criteria, then, they don’t follow a specific strategy, more to the point, they don’t focus on a specific strategy, they don’t know their gold mine area inside out, they don’t do their due diligence. Now think about it, any one of these things fall off, any one of these things aren’t in place, is a rescue for disaster, and yet most folk are going in blind on all of these fronts, which is crazy.
Then people don’t have a power team in place to support them, the right legal team, the right people, the right builders, the right sources, the right different moving parts who are gonna look after the business for them, and then there’s inadequate planning and preparation. Are you impressed I’m remembering these?
PAUL: Awesome, you’re doing well.
BILLY: I’m challenging myself here, this is fun, right? So then they don’t have the right planning and preparation. Now let’s talk about that because you’re always talking about plan, do, review and improve, and you’re always talking about planning your week, so let’s elaborate.
PAUL: The challenge is with most people, especially if they’re not have, or don’t have a business background themselves. If they’re just getting in to business for the first time, or still working in employed environment. Cause most people who are employed, majority of times they’re getting guided, they get told what to do.
PAUL: Very few are self-thinkers and think ahead and actually work on their own and self-motivated, so with this is mind, when you start getting involved in your own property business, no one’s there to tell you what to do, no one’s holding you accountable, so what happens is you could end up floating through your week, doing a bit here, a bit there, and if you float through your week, then you just need to be aware that you’ll get whatever comes your way.
You might bounce off this wall, bounce off that wall, get a result here, get a result there, because you’re just floating through life. When we talk about plan, do, review and improve, the idea is that we need to set ourselves up to win, we need to be disciplined enough that it does’t matter about all these ideas you’ve got, it doesn’t matter about specific investment strategy that you’re gonna go out and apply and do, none of this will actually work unless you plan your life, unless you plan your week.
PAUL: Unless you plan it around what’s your twelve months outcome, what’s your quarterly outcome, what’s what’s your monthly, weekly. And this is how we work things back. And the idea is here for me, that I want to be in control. It’s not that I’m a control freak, it’s not that I need to know ever single waking minute what I’m up to. It’s not like that, it really isn’t.
But I just like to know that I’m in control of the things that gonna happen this week. I’ll leave a bit of time the for unexpected things that happen. Because in property one thing I know for sure is that unexpected challenges and issues appear without a shadow of a doubt. But I like to try and plan the majority of my week. I always do that in advance, it will be a Sunday evening or if I ever miss a Sunday evening which I normally don’t, it will be the first thing on a Monday morning because I need to have my week set up.
And again, my week is set up based on what I want to achieve over that month, that quarter, that year.
BILLY: You work backwards.
PAUL: I work myself back. And then it’s not like I’m trying to get hundreds of things done, it’s focusing on the one thing that needs to be done that week in certain areas of my business, and again, this is where we stay focused, this is where we get a result, this is where, again, I’m gonna get back to people who are still working employed, who want to get involved in property, how do they make the most of the spare ten hours a week?
If you’ve got a spare ten hours a week, you can make property work, you can make a significant income, and actually go full-time in property or replace your income through property with only ten hours of focused work per week. And how this works is when we do the plan, do, review and improve. If you do ten hours in your property business this week, the idea is here is if you’ve planned your week, at least you’ve got something too focus on, and at the end of it, that you do is you review, so you review your past week, what went well, what went wrong, you know, what challenges did I have, how efficient were those ten hours, what could I focus more on, what could I cut out?
Cause that’s you’ve done your plan, that’s the plan, you do, you do the week, you go out and take action, then you review it before you then plan the flowing week, and that’s when you go and improve into the second week, and then so forth. And then it means that those who are limited to the time, having only ten hours a week to put in, then every ten hours that you put to your property business, if you do plan, do, review and improve, every week you’ll be having quantum leaps forward in your business, personally, financially, in your business, the works, because you’re consciously taking control of what you want to achieve next week, and making sure you’re always improving as you go forward.
BILLY: I think the key word here is improve.
BILLY: Because improve implies the rest. And imagine, just imagine the impact it would have on people if they held themselves accountable. Now, for anybody thinking that this might be barbaric discipline, and, you know, working all the hours you’ve got, that’s not the message we preach, you know. The message we preach is about actually building a life for yourself, about holistic business, where you’re enjoying success not only in your property business but every other area of your life as well.
But if you’re working ten hours a week on your property business, then you make sure that you actually work those hours. And when you improve the next week, you’re always getting better, always improving. And by the way, on that note, if you are time limited, that’s exactly why you need to get all those other bits in place, and have a power team supporting you. And you know exactly what your criteria is and what you’re focusing on. The next one is no endurance. That’s a biggie.
PAUL: Yeah. The thing with endurance is that when you think about if someone gets started in their property journey, and it’s not just anybody that’s getting started, it’s with everything and anything. But if someone is just getting started in their property journey, the challenge is that let’s say they get going, they’ve picked an investment strategy, maybe they’ve got all the kinda key points that we’ve covered, they’ve got all that in place, but let’s say they’re out there in their journey, and they focus on a single strategy, they’ve got their ,marketing going, everything is going for them, but it’s just not happening, right? The result’s not came just yet.
Only a month, two months in, and the result’s not came, most people, most people don’t have the endurance to stick long enough than a few months. I mean, you think about it, one year will fly-by like that. I mean, my daughter Arya is six and a half months. Those six and a half months have flew-in. It’s unbelievable how fast that time.
BILLY: It doesn’t go any slower either, it gets faster.
PAUL: This is the truth of the matter is that she’ll be one before we know it. And time flies, it really does. So you need to realise that endurance is what’s gonna make the difference. You need to realise that there’s gonna be obstacles, there’s gonna be challenges, something’s not gonna happen overnight.
And unfortunately, if you don’t have the endurance to stick to the one thing, to stick to the investment strategy, to stick to your investment criteria, to go out there and take action, to plan, do, review and improve, and make sure you’re consciously growing and becoming a better person, and working on yourself and working on the right things, get the right guidance, all that kind of stuff. Then what will happen is that you’ll take yourself out the game. It’s probably the number one thing that I see that takes people out the game. Not just in property, in business in general.
They don’t get the outcome they want now, because we’re all spoiled brats, we’ve got all this instant gratification, six-pack in flimming six minutes, all this kinda stuff.
BILLY: See, all this is how much I love this, I actually opened that sentence with ‘Mate…’, before I went on there. I mean, mate, here’s the thing, right? We see this with people, we see this all the time, right? It’s this, I was reading an article about Gordon Ramsay the other day, about how his kids, when he flies anywhere he’s first class, but his kids always have to sit in economy, because in his mind, they haven’t earned it and they don’t deserve it.
Entitlement attitude, expectancy, feeling like the world or somebody else owes you a living is an attitude that we need to bitch-slap out of the young generation, because it’s just crazy, and a lot of people come into the same expectation. If I’m not a millionaire within six months, I’m out. If I’ve not made my first hundred grand, o wait a minute, that deal has only made me how much? It’s a crap attitude, it’s terrible, you know. In the last twelve years of doing this, between the both of us, nothing’s ever been handed to us, nothing’s ever been spoon-fed to us, every penny that we have earned, we have worked for.
Every penny. And many times, most of the time, all the time we went in not knowing exactly what we’re gonna get in the other side, other than the fact that if we put in the effort, the we get a reward. Ans so many folk come in with this weak attitudes, and then as soon as things get tough, or they come up against a wee challenge, they burn out and that’s them out the game. Drives me nuts.
PAUL: Yeah. I was speaking to someone there actually not so long ago, and he was saying, ‘Paul, I’ve been doing this property stuff for a few months now’, and it was by email, and the language was enough for me to realise that he’s already lost before he really gets going. It’s only been a few months, he’s not full time in property, he’s not doing the right things, and I mean, there’s many things I can turn around and say he wasn’t doing, but his language and the words that he said, he says, ‘I’m gonna give it another month and see how this goes’.
He’s already out, he’s already made his exit. And this is the thing, this is not something to try, it’s property. This is where you can make tens of thousand of pounds, hundreds of thousands of pounds, seven-figure sums over the long term. This is not something you just try. This is something where you need to get endurance, and realise that just like, I mean if everybody was just to try something, we’d have no skilled trades, we’d have nothing. Because you think about it, you’ve got all these different trades, the reason I’m using tirades is because we have builders, we have joiners, we have painters, we’ve got electricians, we’ve got plumbers, all these people.
Imagine we had all of these people that just try to be a plumbers for a couple of months, we’d have no skilled labour. What if we had all these doctors that says, ‘Oh, I’m gonna try to become a surgeon’. I mean, I don’t know about you but I don’t want someone to operate on me if they’re just trying to see if they can fix me.
BILLY: If I say to you, ‘Try and open that door’, what that that presuppose?
PAUL: Presupposes failure, you’re not gonna achieve it. So the idea here is that you need to get endurance and realise that if you want the rewards, it’s not easy. I mean, it’s not hard either, but the same thing is you just need to stay in this. you need to commit to this long-term and realise that if something’s not working, its not that it doesn’t work, it’s just that something’s not right, that you need to try and work out what that is and then fix that, focusing and working on that part. Maybe getting support and mentorship, whatever you require to take your to that next level.
BILLY: One of my favourite statements is ‘Property didn’t work for me’. Okay mate, no worries. Let’s leave that one there before I go on. Okay, and following nicely from that, number eight – most people can’t handle objection, rejection or the negative.
PAUL: We’re involved in property here. If we’re doing it right, we’re gonna be making a lot of offers. I’ve we’re dealing direct with motivated sellers, we’re gonna be negotiating and making offers direct, you know, we’re gonna have deals that fall through, and with this in mind, what I have seen countless amounts of times, is when people, who are in the thick of the deal, it’s their first deal, or the second deal or their third deal, it’s one of the first few deals they’ve done.
And they’re banking on the money, and they think it’s a great deal, and they’re so caught up and emotionally attached to this one deal that’s gonna make them X-amount of money, and then the offer is not accepted, it falls through or something happens, and that there takes them out the game, so talk about endurance talk about folding completely when something like that happens, and what we need to remember is that, you know, when you’re getting an objection, someone’s saying no to you, someone’s not gonna, you know, give you finance for a deal, someone’s not gonna joint venture with you, whatever you’ve been rejected, it’s not something you should take personally, it’s something you should do plan, do, review and improve in yourself. Someone doesn’t give you money to fund your investments, you need to look and go, ‘Well, am I worthy of investment from someone?
Who do I need to become?’, we should look at this as opportunities to become a better person. If my offer is not accepted when I’m dealing with a motivated seller and negotiating with them, then plan, do, review and improve. Let’s review what I did within that negotiation, what did I say right, what did I say wrong, did I not work on the right key point, did I not give the seller confidence, what did I do wrong in there? Look at these as an opportunity to learn so we can on the next time we go and negotiate.
If our offer wan’t accepted with an estate agent for a property, then, you know, does that mean that my offer won’t be accepted six months down the line cause they can’t sell their property or what? We need to realise the objection is part of the whole process of being involved not only in property but in business in general.
BILLY: Yeah. I think to go in and wish that it was any different is naive. I think you just need to realise that it is the game. As Jim Rohn says, ‘Don’t wish it was easier, wish that you were better’. So a lot of folk when you talk about objection, this can also be applied to the negativity people will receive from well-meaning friends and family members, when they do start this journey. Because they’ll get criticism from people. Why are you doing this thing? You’re not making any money yet. When are yo gonna get a real job?
All these different statements. Do you know what, that actually also folds nicely into the next principle. Which is developing that mindset. Most folk haven’t developed what we would call the property millionaire mindset, which is actually pretty straightforward and simple, and whenever we teach these concepts, everybody understands it. Nobody says ‘I don’t quite get that one’, it’s very easy to understand and yet we spoke about this in many podcasts, when the rubber meets the road and when the people are out there in the trenches, it all falls apart. Which comes back to your endurance and objection and everything else.
To cover the millionaire mindset, the property millionaire mindset in a heart beat, I’d say personal responsibility and your wealth thermostat. Taking one hundred percent responsibility, no excuses, no drama. You own it, whether it’s a success or a failure, you own it and you keep driving forward. And you must get you wealth thermostat, your financial capacity continually moving up so that you become a hundred grand a year person, a quarter mil a year person, a half a mil a year person, a million pound a year earner.
Because when you’ve actually built a million pound company, we know this only too well, when you’ve built million pound company, you realise what you actually had to go through to do it and it takes hell of a lot of mindset, and as the old saying goes, your first million, that’s the easy part, the second, it just flows in, because this is right, because the systems are there, because everything is in place.
PAUL: First million is the hardest.
PAUL: Then every million thereafter is easier because you’re got the roadmap to do it, and the challenge is.
BILLY: Because you’re not focusing on the tiny little things either.
PAUL: Yeah. But the challenge is if you think about it, with mindset is, mindset is probably, is why we have so much focus on it, because we know is why when I went to Dan Peña, the castle seminar for eight days, why five of the eight days was all on mindset? It’s so important because if we get the mindset right then everything else takes care of itself.
We’ve got the right way that we go into every situation with the right attitude, we go in with the right outcomes that we wanna get. We take that personal responsibility but more importantly, we don’t let anything to hold us back. And if you’ve got the right mindset, it just serves everything that you’re gonna do well.
BILLY: Mhm. And the final principle is people not willing to invest in mentorship. This is a natural way to finish the podcast. Because the fact is, we do offer mentorship. Now this is an interesting point in the conversation because this is the point where there’s some folk who will sit and listen to this or watch this and go, ‘Okay, I get this, I need to talk to Paul, I need to have a strategy session, I need to have discussion, I want my hand held, I’ve tried to do it myself, I need the support’.
Good, that’s smart. Because the fact is, you and I invest in mentorship all the time. At the start of this year we both invested in a six figure mentorship with a certain person, and we also invested with other mentors too. And I am forever looking for ways to top up my knowledge with the right people because I can either, or we can either figure it out ourselves, which means the many pitfalls, the mistakes, the simple little, it’s like there’s two paths and they shift apart by an inch.
The further down each path you go, the further apart they become until you’re in a totally different place. Now we can either go through and figure it out ourselves, which is fine. One day we’ll get there, we’re smart enough, which many of the people watching this are as well, or we can get somebody to say, ‘Paul, just jump that fence, don’t bother about any of the paths, jump that fence, walk round this way, do X, Y and Z, and there’s the result’.
That is the power of mentorship. We invest in it, and the other group of people who are watching or listening to this right now are gonna go, ‘Here it comes’. And I’m sorry, we just can’t help you.
PAUL: Yeah. If you think about it, everybody could potentially climb Mount Everest.
PAUL: Alright, we could all. We could all. We’ve all got a fighting chance. You know, if you’re a bit more fitter, you’ve climbed a couple a coupe of hills or mountains.
BILLY: Anybody able-bodied.
PAUL: Yeah, you can do it.
PAUL: Now, your chances of reaching the top might be a bit more difficult, it might take a longer time, you might go through a lot more failure or you can hire a Sherpa who’s been up there countless amounts of times.
BILLY: Hire a Sherpa. Sherpa hire fifty quid.
PAUL: Aye, that’s it. And he’s gonna give you the right equipment.
PAUL: He’s gonna make sure you’ve got a pre-lan to work to, to make sure that you’re coming in the best possible physical shape, best health, to give you the fighting chance to reach the top, and he’s gonna tell you what time to go to get the best sleep, to get preparation for it. But more importantly, if something goes wrong during your journey up to the top, how to change direction, which direction you should change, how to handle it, when to go for a climb or not to clim and all the other bits in between to give you the fighting chance to reach the top in the best possible time, and, I mean, doing it the first time.
BILLY: Mhm. I mean the Sherpa has done it before. They’ve walked the path, they know the route. So, you know, why would you try and wing it and do it yourself, who you can get the right advice and avoid making mistakes that are ultimately life or death, when you’re climbing Everest. So, on that note, let’s wrap up.
So those are our ten principles, hope you guys enjoyed them, listen back to this, again and again, because there’s some absolute gold in here, there’s some real knowledge that if you just start to understand the thing that we’re snaring and you implement each of the ten things that we spoke about, then your property journey will dramatically escalate, your results will dramatically boost, so keep this in mind, and as we finished on the last note about mentorship, if you’re interested in having a conversation with us, go to propertyprotege.com, add us on social media, by all means, followpaulmcfadden.com, followbilly.com and you’ll get our linkedIn and Facebook profiles, but go to propertyprotege.com, watch the video, and then contact us and get a strategy session with Paul McFadden.
Paul will talk to you about your challenges, he’ll talk to you about your situation, he will establish whether or not we are the right fit for you and you’re the right fit for us, for the communicate that we’ve built and we are very protective of it. And if the fit is right, then we will discuss taking yo0u forward on our twelve-month mentorship, and essentially helping you get that result that you are after. So on that note, than you for listening, thank you Paul for taking time as usual, and we’ll see you next week. Cheers.