We all know that cooking with a recipe starts with a list of ingredients followed by a well-defined method to create a successful result. When it comes to building a successful property portfolio the same principle applies and like any good recipe, it needs to be carefully followed and respected.
Too often I hear stories of property investors, who in their excitement jump straight into a property deal having no awareness of there being a recipe to follow, exposing themselves to costly risks and potential failure. Time-poor investors keen to enter the market who watch property markets pass them by whilst others create wealth, typically end up in this situation.
But like any good recipe, having the best available ingredients are only a part of a great result. Following a method of well-planned steps along the way is key to success.
Success Always Leaves Clues
I encourage you to appreciate the importance of understanding that success always leaves clues. I learnt early that to achieve great results in my life I needed to find somebody who had achieved that result and ask for their recipe, ingredients, method and steps. Then carefully follow that recipe to fast track the result I wanted.
Understand that to be successful as a property investor there’s a range of important ingredients and a series of steps; a recipe that will provide confidence that you’re going to get it right. Success always leaves clues, look for them.
Small Details Get Big Results
I’m a big believer in the more ways I can break down the property buying process, the better. People around me and the investors that are part of my group love the fact that my property investing model is like a trusted recipe. A well-defined list of key ingredients, methodology, and steps. Carefully crafted, well researched, and systematised, yet tailored to meet individual situations and personal outcomes.
If you’re doing this on your own, please do not underestimate the number of small ingredients and steps there are to navigate. Each one of these has the potential to adjust your outcome significantly – 5% here, 1% there – the calibrations and the necessary respect for each or any can have a massive impact on results.
Tweak What Works, Don’t Reinvent
When using a new recipe, you will have some idea of what to expect. Cookbooks have photos or there’s a clue in the recipe title. The ingredient list may be similar at a glance, but you know whether you’re baking bread or scones, or making a casserole verses a curry. As a successful property investor, it’s just as important to have a clear idea of what you want and what works for you.
I’ve witnessed property investors having had a taste of success get overconfident and get off track. They look to diversify and delve into areas they are not prepared for, have no experience in and/or do not have a recipe for. Something I personally experienced having achieved a great deal of success at a young age which allowed me to retire at 38 years old.
Thinking I had the Midas touch, I started doing commercial developments, building car washes and commercial buildings with cafes and fitness centres and play centres. Mixing up the recipes only to realise that my best success was from sticking with what worked best for me and what I did have the right recipe for. The small sweet fruit of affordable residential properties that have allowed me to become a wise and astute property investor. This is my area of expertise and where I love to spend time researching.
Please understand it is incredibly powerful to find a recipe that works and to just tweak if necessary, to refine and improve what already works to ensure a successful outcome for long term wealth.
Respect the recipe.