Simon Zutshi, is one of the
most respected property investing experts in the UK.
Simon is a Best selling author, international speaker,
experienced property investor, and founder of the
property investors network which is now the largest
network of property investors in the UK.
I
started investing in 1995 when I purchased my first
home and rented out two of the rooms to friends to
cover the cost of the mortgage. I slowly built my
property portfolio learning the hard way, by trial
and terror, making lots of mistakes but somehow managed
to struggle through until I reached the point of financial
independence at the age of 32.I am still learning
and investing in myself which is the best investment,
even better than property!
Since
2003, I have been fortunate enough to be able to share
my experience and teach other people how to invest
in property. Every year I speak to thousands of investors
and one of the questions I am asked most frequently
is “How do I become a successful property investor?”
My answer is always the same. “To be more successful
in anything, you have to develop the right mindset!”
Unfortunately, this is usually not what people want
to hear. I think they expect me to tell them about
the latest investment strategy that will give them
the success they desire. That is certainly what I
used to do, but now I understand that what most people
actually need is to improve their mindset.
So
what exactly do I mean by mindset? The purpose of
this article is to answer that question and demonstrate
why the right mindset is so critical to your success.
I believe there are three elements that you need to
be a successful investor. These are: Knowledge,
Team and Mindset.
KNOWLEDGE must come
first.
In the Early 2000’s you could have purchased
almost any property and it would have made money thanks
to the rising market. That is not the case now. The
market is still very unstable. We may even see a second
dip and so you must know what you are doing when investing.
The investing strategies that worked so well a few
years ago may not be appropriate in the current market
conditions and so we need to keep up to date with
what is happening in the market and the latest investing
strategies. I guess that is one of the reasons you
made the smart decision to subscribe to this magazine.
The
second element is TEAM.
You don’t need to do everything on your
own. You need a team of property professional
such as Mortgage broker, solicitor, builders,
letting agents etc to help you. Also in your
team should be other successful investors from
whom you can learn and gain inspiration. It
can be a lonely journey as a property investor.
The more successful you become, you will find
there are fewer people you can talk to because
most of your friends and family just won’t
get it. A great way to meet other property professionals
and investors is at property seminars and networking
events which is why I set up property investors
network. You may even consider doing joint ventures
with other investors to open up the opportunities
available to you. If your investing is more
than just a hobby then you need to take it seriously
and get someone like a coach or mentor to guide
you, help you avoid making mistakes and hold
you to account. |
MyPropertyPowerTeam.co.uk
is a great resource for finding your Team
- just browse the Suppliers Directory!
|
Finally
and most important is MINDSET
by which I mean your attitude and beliefs. Our beliefs
are built up from our own personal experience and
our perspective of the world. Your beliefs are incredibly
strong and absolutely true for you. Whether you believe
you can do something or can’t do something you
are always correct! You will also seek evidence to
support your beliefs and re-enforce them.
On
6th May, 1954 Roger Banister was the first person
in history to run a mile in under 4 minutes. Prior
to this nobody thought it was possible. Doctors said
that the human body could not move that fast and yet
one man proved that is was possible. In the 12 months
after Roger had broken this world record, a number
of other runners also achieved this incredible feat.
So what changed for those runners? Was it a new running
technique, improved diet, or better shoes? No, quite
simply, inspired by Roger they changed their belief
of what was possible.
The
same is true in property. Many investors approach
me for advice on how to be more successful. Often
they think they need more knowledge but what they
need is mindset. I see the same people at property
events gaining more and more knowledge but not applying
it. What is often stopping them is fear of making
a mistake. Another common problem is when investors
say they are not getting the results they want despite
them taking action. Usually, I find people are just
not taking enough action. However, sometimes it appears
that they are actually doing everything they need
to but they are still not getting the results. This
is due to one missing factor, which is they don’t
belief that they can do it.
I find it fascinating that two people can be given
the same information and come away with totally different
outcomes. Let me share a personal experience to highlight
what a difference in beliefs can make. In 2006 I started
to buy property using the Mortgage Express same day
remortgage process. Basically you find a motivated
seller, negotiate an ethical win win deal, buy their
property quickly with cash (Closed bridging) and the
remortgage the same day to repay the bridging. The
result is a happy seller and you get a property in
your name with no money left in. This can’t
be done now due to the six month rule but at the time
it was a very easy way for anybody to buy property.
I
was very excited by this simple and yet powerful strategy
and keen to share it with fellow investors. I explained
this strategy in detail at our monthly London evening
pin meeting and not surprisingly it was very well
received. However the week after the meeting I had
a call from an irate delegate who had attended with
his daughter and wanted his money back (£60)
because he thought it was all a scam, a con and just
not possible. I took this personally and so spent
an hour with him on the phone going through it step
by step to help him understand. This was to no avail.
He could not get his head round how it worked so believed
that it was not possible. He had reinforced his belief
by asking his solicitor about it. Not surprisingly
his solicitor had not heard about it either and so
concluded that it must be illegal. This was a valuable
lesson for me as I realised you can’t argue
with someone beliefs. Your beliefs affect your attitude
and the actions that you take or don’t take.
Only you have the power to change your beliefs and
the first step is to recognise the beliefs that maybe
are not supporting you.
I hope you have found this article thought provoking.
Here
are my top 6 tips to help you improve your mindset
1.
Have an open mind:
Be prepared to learn and challenge your existing
beliefs. Remember you don’t know what you
don’t know. Your mind is like a parachute.
It works best when it is open.
2.
Get inspired:
Find other people who have done or are doing what
you want to achieve. If someone else can do it,
so can you. Use their stories to build your own
belief of what is possible.
3.
Improve your environment:
Make sure you mix with likeminded people who share
and support your vision. Cut out the negativity
from the press and people you know who are dream
stealers.
4.
Look for the solution:
You get what you focus on. Too often we focus on
the problem instead of looking for the solution.
There is always a way if you are resourceful.
5.
Live life with positive
expectation: Expect good things
to happen to you and they will. Remember every cloud
has a silver lining. Look for the good in everyone
and everything.
6.
Be grateful:
Particularly when things don’t seem to be
going as well as you would like remember how lucky
you are and count your blessings.
