My strategy is best! Isn't it?
Hey guys,
I told a story about one of my property mentors in Australia the other day. The short story is this...
Alec has been in property for ages. He specialises in industrial property and owns millions of it. He's the type of guy who can tell you what an individual plot cost 20 years ago. Alec researches specific areas and in particular will look at unused or vacant plots that he may be able to offer the owner well below value and 'steal' it. He will then get planning to put a large shed that will hold a number of smaller sheds. The great thing about this is that he pre-lets them before start the build program. He builds it simple - a tin shed with nothing inside and the people that lease the property will do what ever they need to. He taught me a great deal about making money from industrial property.
Funnily enough I was speaking with the same investor the following week and telling him another story -- one about Peter and Joanna, a couple of my other mentors. Their story goes like this...
Peter and Joanna make money from residential property. They buy low and sell high, and Jodie is a trained architect who loves adding value through renovating. Between the two of them they make a lot of money through renovating property. They are very good at researching areas and finding bargains. Again they always buy below value. They taught me a great deal about making money from residential renovation.
Anyway the investor asked me "Which strategy was best, Alec's or Peter's?"
The answer was simple:- "My strategy is best!!!"
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The bottom line is that Peter and Joanna make great money from property using their strategy and Alec makes great money from his strategy and - funnily enough - I make great money from my strategy.
You see, I know lots of people that make money from property. They all seem to do it a little differently. A slightly different take on a similar strategy. The strategy they use is the best strategy for them. The trick is finding a strategy that works for you and sticking to it.
So when you hear a story about someone making money out of property, just stop and ask yourself if your strategy really is all that bad. It's often very easy to tell people about specific examples about how much money I, my mentors and my investors have made, but remember than in between all the making of money there is always a lot of hard work, hard research and sitting on your hands wanting the market to pick up, rents to increase, interest rates to decrease or any number of other things to happen.
Don't be fooled or taken in. Property is a long term investment. It's easy to lose sight of this as you hear any number of different, new and possibly more exciting strategies that appear to be making money now.
Live with passion,
Brett Wood