Month: January 2020

This week’s activity has validated certain principles and practices that Chris and I have set and work to in our property property business. These are kind of unwritten rules that we have but have never formally articulated or shared until now. This is by no way an exhaustive list of how we operate but they are 3 principles/practices that we stick to, and because of that they have served us well in the last week. 

 

Here are those 3 simple principles

 

1. Keeping in touch with commercial surveyors
2. The Importance of keeping records and notes on deal analysis
3. Sticking to your investment principles

 

Hopefully principles like these will validate what you are already doing or help those still formulating their own. I’ll briefly unpack and explain each of these and why it has helped us this week.

 

SIMPLE PRINCIPLE #1: KEEPING IN TOUCH WITH SURVEYORS

Our January check ins with the surveyors we had developed relationships with last year led to us being notified about two properties we were interested in last year that are now back on the market. These were potential deals involving commercial property that we put a significant amount of due diligence into but neither came to fruition due 1) the vendors going cold 2) our offer on one property wasn’t accepted. 

 

A phone call last week and a follow up coffee meeting this week with our friendly surveyor resulted in the news that both of these potential deals are now live again for us to have a second crack at the whip. 

 

LESSON – keep in regular contact with the surveyor contacts you make and diarise check in calls/emails for time intervals that suit you. Build a relationship with these professionals and take them for coffees.

 

SIMPLE PRINCIPLE #2: KEEPING NOTES AND RECORDS ON DEAL ANALYSIS

Our ability to re-familiarise ourselves with these two property opportunities was pretty quick because we keep all of our deal analysis and associated notes in excel sheets in our shared google drive. 

 

Whilst it is not a sophisticated CRM, we have all of our calculations, area comparables and summary notes from conversations with surveyors, agents etc all captured in those excel sheets filed in the google drive under the appropriate label so we can easily find it. This has meant getting our heads back into past due diligence has been swift and as it was 6-10 months ago we can now build on our area diligence easily and add a few lines for more recent comparables etc.

 

LESSON- whether you capture your deal analysis in paper form or in a google drive like us, the key is to file and keep it as you never know when it might need to be revisited. We see it as adding to the library of your intellectual property. Over time you will build up local market intelligence based on the analysis you do, comparables you find and the conversations you have. It will mean you are not starting again from scratch every time you go to analyse a deal of the same type or in the same area. 

 

SIMPLE PRINCIPLE #3: STICKING TO YOUR INVESTMENT PRINCIPLES

Mistakes and successes over time in the property game has led us to evolve and create an approach to investing that we now apply across every property consideration. The investment philosophy we live by is our D.I.C.E model which I explain in detail in my book Predictable Property Profits.

 

One of the strategies that Chris and I have been building the foundations on around this D.I.C.E model is the very attractive targeted commercial investment. In simple terms that would look something like this – Find a commercial tenant with a need to expand into a new location and ascertain their property requirements; go hunting for a vacant property that will provide the end result that the tenant wants; gain some commitment from them ie an agreement to lease; acquire the vacant building, do the required refurb works, get the tenant in place, refinance at the higher commercial valuation; move onto the next deal. 

 

We love this approach in the commercial space because it ticks all of our boxes. In particular it removes a lot of the guesswork and bakes a high degree of certainty into the deal, something that is paramount to us, especially when working with JV investors. 

 

Circling back why this principle served us this week – there was a detached shop with uppers building for sale that was brought to our attention last Spring. The attractive thing about this was that even though geographically far from us, there was interest from a major charity to let it. We chipped away at this for several weeks to try and line up a mutually beneficial deal for all parties but in the end weren’t able to bring it to a conclusion. 

 

In our catch up with our surveyor this week, we were informed that the building was back up for sale, but now going to auction with a pretty low guide price. Naturally Chris and I were pleasantly surprised and picked up our diligence where we left off to try and structure the deal. First port of call was the commercial agent representing the charity, and whilst that very helpful call provided an answer it wasn’t necessarily the answer we wanted to hear – the premises was no longer on the radar and there certainly wouldn’t be a conversation about an agreement for lease in the near future. 

 

LESSON- Even though this property could be picked up cheap [potentially around £50K for over 3000 SQFT of high St property] without the certainty of end user it no longer qualified to fit our model. We were not about to speculatively have a gamble with a property far from our home area just because it was cheap. 

 

In a previous stage of our property journey that decision to move on would have been way more difficult, but now with a clear set of guiding principles on how we invest, it made the decision clear, logical and swift. 

 

In the week ahead we are focusing on bottoming out the other opportunity that is live again. 

 

What are some of your guiding principles and practices that continue to serve you in your property business?

So here we are 3 weeks in and 2020 is well underway. Chris and I had some great meetings and calls this week with various people who currently are, or will soon be, key figures in our extended power team. In those conversations I think we all felt this was about the last week we can get away with saying ‘Happy New Year” :). A couple of those calls/meetings involved commercial surveyors/agents – in picking up with them again after the holidays we are now excited to be revisiting a couple of potential deals that went cold last year but where the timing could be right now, in addition to some potential new avenues to explore in regards creating commercial deals that fit our DICE model.

 

Anyway, back to the message in this week’s post – by now everyone has some goals set and possibly some new habits being introduced. Just like we know that gyms are packed in the first few weeks of Jan, we also know the intended good practices at the gym and at work can slip away by February. Well if you’re interested in making sure your good intentions for your property business don’t dissipate, here are 12 questions to check in on yourself. I learned these from Darren Hardy early last year and having noted them in my journal I’m going through them now for my own benefit. I hope you can benefit from asking these of yourself also.

 

12 QUESTIONS TO CHECK IF YOU ARE DOING WHAT YOU KNOW YOU SHOULD TO GROW YOUR PROPERTY BUSINESS

 

[the short sentences in the parentheses highlight the harsh truths that may be going on inside your head, hopefully not however 🙂 ]

 

#1: Do I have a weekly calendar with slots booked for my most valuable priorities, before each new day starts? [so I can create rather than react]

 

#2: Do I allow too many interruptions during the day from friends, family, customers, prospects, team members to interrupt my flow and deep concentration work? [because it’s a welcome relief from the hard work of creating and finishing something]

 

#3: Do I talk a lot, extending conversations into longer chit chats when unnecessary? [because it’s seemingly justifiable to delay the hard work of creating]

 

#4: Do I multi-task? [even though I know it reduces my intellectual ability and causes me stress and anxiety]

 

#5: Do I love the adrenalin buzz of being overly busy? [in order to feel a sense of importance and self esteem even though it’s at the demise of my actual productivity]

 

#6: Is living in chaos and constant motion more comfortable to me than stilling my mind and single tasking? [because I might fear to be alone with my own thoughts]

 

#7: Do I find it really difficult to say no? [because I am too needy for approval and lack the self confidence to stick to my own priorities]

 

#8: Do I often find myself in a crunch to finish projects because I’m in over my head? [because I allow myself to be everyone else’s whipping boy/girl and don’t protect my own priorities]

 

#9: Do I spend hours needlessly on social media? [to escape and distract me from what’s most important]

 

#10: Do I waste time doing repetitious, non-vital and inessential tasks? [because I haven’t put systems in place to automate or eliminate]

 

#11: Do I maintain control of nearly everything because I believe no one else can do it as well? [which makes me an egotistical and delusional narcissist]

 

#12: Do I believe I can’t afford to hire someone to help me? [because I don’t actually value my time, my family and my health appropriately]

 

If you’ve read this far, you might like me have thought woah- those questions can be quite harsh and cutting. They are, but answering them for ourselves can only help by shining a light on what we need to keep us progressing in an optimal fashion. For me personally, I’ve noted some actions needed under questions under 4, 7 and 10. 

 

Have these questions shone a light on something helpful for you?

Last week’s post on ecological goal setting seemed pretty well received, so thanks for the kind comments and engagement. The natural next step is to follow up that deep thinking around setting the right kind of goals for YOU, with an implementation plan. That’s what I’m going to outline here.

In the last post I wrote about how to set psychologically optimised goals that are congruent ie your conscious and unconscious mind are aligned in relation to the goals you set. Getting this right at the beginning is essential!

In the goal setting process it’s easy to get excited in the now by writing down a big goal but the science of achievement requires us to connect the dots between a Big Hairy Audacious Goal (BHAG) and what exactly we need to be working on quarter to quarter, month on month and how we’re using our time each day.

The big rationale behind artful implementation is to take the time to do strategic planning now so that at no time during the quarter are you at the desk on a Monday morning wondering what to do to get started (or at least it will be significantly minimised).

An implementation plan prevents that brain fog, but sadly investing the time to create such a plan is the most common part of goal setting that people skip. But not YOU, and not this year! It’s often looked at as too much like hard work-  and you know what, it is hard mental work! Most good things do require some uphill struggle, but it’s also where we can get most clarity. I heard a brilliant quote a while back from one of the greats that ties into this point, it goes;

 

“People have uphill hopes, but downhill habits”

– John C Maxwell

In other words, we all want the things that require ‘uphill’ efforts, but are we willing to put in the work that builds the ‘uphill habits’ that will get us there?

You need to take your big 2020 goals and translate them into a project plan. This part of the process is uncomfortable, which is why people skip it but having a well thought through plan will keep you aligned, in the zone and knowing what you have to do next. BHAGs don’t manifest on their own, it takes real intentional work to dream them up, plan the road map, and then of course execute on that plan.

Here’s a quick summary of the process for artful goal implementation that I’ve been taught and continue to use each year. (Chris and I do invest multiple hours in goal planning in the opening weeks of Jan)

IT’S TIME TO BUILD THE FOUNDATION OF YOUR YEAR!

STEP #1: List your key projects

Taking everything into account, list 5-20 projects that would have an immediate impact on your business. With this list you are thinking up all the growth driving activities that move you closer to achieving the BHAG (ie various strategies and tactics you want to try that would/could result in a net positive to the business).

STEP #2: Now eliminate all but 3, and ask yourself:

– are you able to complete each one in a 12 week period?

– can you complete these with your current resources ie time, people, money?

– prioritise those projects that can feasibly meet the above

STEP #3: BUILD THE OUTLINE PLAN

Now for each project, build the outline for your implementation plan by completing a handful of answers to these 4 foundational productivity questions:

 

For project 1

#1 What specifically needs to happen…to get started? To continue? To finish?

#2 How can you measure progress? (ie no. of viewings/offers per week. Booking revenue, occupancy by month..) When answering these questions think about what can be ritualised/repeated by you and/or your team. Think about the input activity required to achieve the desired property outcome.

#3 What deadlines need to happen within 12 weeks? Think it through and allocate deadlines you can put into your diary. These will serve as milestones and checkpoints towards your completion point and get your mind clear on hitting them by certain dates.

#4 How can you stack multiple layers of accountability onto this project. In other words, who all can you inform, involve, make a pledge to etc that will help you follow through on your promise. Think mentors, family, advisors, peers).

Do the same for Projects 2 and 3. It’s a good idea to have no more than 3 projects in a quarter, and if one is particularly all consuming then stick with just that one project for the entire 90 days.

STEP #4: 12 WEEK PROJECT PLAN

The final stage to this is creating your 12 week project plan where you literally create a grid with 84 days and then populate it with dates, specifics and deadlines (as per your answers to the Q’s above) to work to each day and week. Schedule this stuff in using the mechanisms that work for you, phone, outlook calendar, a wall chart or whatever. Allocate sufficient time and protect it in your diary.

And there you have it. With clarity on what your goals are and your planning complete, now its all about taking action consistently each week. 

I’d love to know if you complete this exercise, let me know if you do and you will massively increase the likelihood of following through. 

Go for it!

Happy New Year and new decade!

In last week’s post I shared the Intelligent Reflection process that Chris and I do each year (here we are this week in the work/entertaining space we built doing some reflection and planning). Here are just some of the reasons why we complete that reflection process before diving into setting any goals:

*Being a business owner makes you very tough on yourself, but intelligent reflection offers a way out of that.

*It gives you energy and inspiration to continue marching towards your goal, even in the face of feeling you’ll never be done.

*Most entrepreneurs (especially those we speak to getting started in property) often have a lack of awareness of how much they’ve actually done and have achieved in a year (in other words we get caught in the trap of looking at proverbial mountain summit that feels out of reach rather than congratulating ourselves on looking back and seeing how far we’ve come).

*It acts as a powerful post mortem analysis on mistakes that you can take valuable learning from

*It’s a way out of the ‘insanity cycle” ie doing the same thing and expecting different results

*You can surprise yourself with some easy wins ie getting clarity on something that got you great results and can be replicated going forwards.

So what about actually setting goals? I’ll take a safe bet that most people in the property community will punctuate this time of year with making resolutions and/or setting goals. Often, these will be ambitious financial based targets which may include numbers of properties, monthly cash flow increase from their BTL’s/SA’s/HMO’s, number of new build developments and so on. In themselves, nothing wrong with goals like those, in the right context that is and with the appropriate alignment at a deeper level. However, without the right psychological alignment, goals like these can fall flat and fail to get off the ground. Therein lies the problem.

Below I am sharing one of the biggest insights I’ve ever learned on goal setting, here it is – don’t chase after goals that your subconscious mind doesn’t really want. Now, you may be thinking, What on earth are you on about? But if you’re interested to understand this concept and transform your goal setting and achievement, bear with me as it’s a pretty deep concept.

Here’s what I’ve learned over the last few years from a specialist business coach and psychologist for entrepreneurs. Our unconscious mind has one sole job – to push us away from pain and towards pleasure. And because of this primitive fact, the subconscious controls our mental valve on motivation.

In other words, one seriously needs to consider the secondary and tertiary consequences of pursuing a goal because the subconscious will slam on the breaks if it thinks PAIN lies ahead. As a simple example, if we start the year saying I want to double my income from property, the numbers sound attractive but we typically don’t take the time to consider the real consequences of pursuing that. In this example what that might look like is this- as time and activity goes by the brain realises that in order to actually double the income it would mean significantly more time sourcing/viewing/travelling…(you fill in the blanks of the secondary consequence) and therefore less sleep/more stress/less time with family (tertiary consequence). In other words those consequences are the potential ‘pains’ that the unconscious mind would see and cause it to procrastinate doing the required work. Does that make sense?

What I’ve just highlighted can’t be underestimated, it is a major cause of feeling ‘stuck’ during the year, chasing after what you THINK are the right goals for you. However, self sabotage can arise from pursuing certain goals when the unconscious mind doesn’t get the same excitement as the conscious mind, because it’s worried about the associated PAIN. But with alignment, motivation happens intrinsically, it isn’t something you need to will into existence.

So what’s the answer?

ECOLOGICAL GOAL SETTING

This is the real gold dust. This is the stuff that’s been taking me a while to embed but I’m really starting to see the power in it year on year. You may wonder what is meant by ‘ecological’ in relation to goal setting.

 

Meaning of ecology from the online dictionary

‘the branch of biology dealing with the relations and interactions between organisms and their environment, including other organisms.’

In the context of goal setting, the purpose of ecology is all about alignment between the conscious and unconscious mind. Having also learned about highest values from Dr John Demartini, I liken this alignment concept to his work on values ie we have to balance our financial goals with our other highest values. We will thrive more in business when other parts of our life thrive too.  

So to optimise chances of goal achievement we must run the goal setting through a filter of well formed conditions.

These conditions include the following:

#1) The goal must be stated in positive terms (ie write it out as if already achieved and in present tense as if you are describing who you are, what you have, how you are living)

#2) The goal must be initiated and maintained by you (this is crucial)

#3) The goal must use sensory based descriptions of outcomes and steps

#4) The goal is ecological in every sense ie think through how it will affect other areas of your life (ie the secondary and tertiary consequences/positive ripple effects)

#5) There is more than one way to achieve the goal (ie giving yourself flexibility)

You can see this is a completely different process compared to just writing out a list of exciting things you would like to have or happen. Thoroughly thinking through goals like this is designed to set your unconscious mind building a map, a reference place and foundation for what’s involved in achieving these goals.

I appreciate this is a lot to digest so if you got this far, well done. Even better, if you choose to act on this and implement it with your own goal setting you will be doing the work to set yourself up for a great year ahead.

Let me know if this stuff strikes a chord with you.

Wishing you all a 2020 of good health, growth and fun.