How do you maintain your focus?

[Of The Vultures]

Being the kind of person who probably over-thinks things a lot, I'm getting pulled in all directions when it comes to investing strategy. Few of us have an iron clad strategy in place at the beginning and it probably evolves as you gain more experience but how do you deal with the constant distractions of new "hotspots", ideas etc?

For example I'm interested in active investment eg small development in Perth and the aim is to quit full time employment in 5 years. Then I see a Steve McKnight seminar where he essentially says if your time frame is <5 years, then you don't have time for a job and you need to quit and concentrate on the property investments. As you'll obviously still need money, he suggests a high cash flow business, online or otherwise. Somebody slap me now for I wasted a few hours looking into the merits of coin laundries and the like... sigh. Also last I heard businesses don't generally run themselves, how is this different to having a job?

Then the Terry Ryders of this world tell you their predictions for the next Gladstone and lo and behold, another few hours spent looking at various regional towns you may or may not have ever heard of.

This is wasting my time. How do you pick one strategy and stop getting distracted by other ideas?

 

[Aaron_C]

I just keep doing what I've always done. Bought 3 times in the last 2 years. For the previous 5 years didn't buy anything. All about cycles and timing

 

[sanj]

Being the kind of person who probably over-thinks things a lot, I'm getting pulled in all directions when it comes to investing strategy. Few of us have an iron clad strategy in place at the beginning and it probably evolves as you gain more experience but how do you deal with the constant distractions of new "hotspots", ideas etc?

For example I'm interested in active investment eg small development in Perth and the aim is to quit full time employment in 5 years. Then I see a Steve McKnight seminar where he essentially says if your time frame is <5 years, then you don't have time for a job and you need to quit and concentrate on the property investments. As you'll obviously still need money, he suggests a high cash flow business, online or otherwise. Somebody slap me now for I wasted a few hours looking into the merits of coin laundries and the like... sigh. Also last I heard businesses don't generally run themselves, how is this different to having a job?

Then the Terry Ryders of this world tell you their predictions for the next Gladstone and lo and behold, another few hours spent looking at various regional towns you may or may not have ever heard of.

This is wasting my time. How do you pick one strategy and stop getting distracted by other ideas?

With a job you know just about exactly how much you're going to make, ie there is a cap. You also are generally pretty inflexible with hours etc.

I think majority of jobs get in the way of making proper money/financial freedom, not all of course but the majority imo.


Re your main question though, it is pretty hard but youve gotta work out what works for you and the reward Vs what you have to put in time, money and effort wise. Can often involve a bit of trial and error or at the very least being very honest with yourself in terms of your strengths and weaknesses.

 

[Angel]

I suspect Steve McKnight is out to sell his courses and entry into his Property Fund. By mentioning owning a business, he will be leading customers towards one of his other current projects, selling courses to teach us how to operate online businesses. His recent seminars have been hard sell using the exact same formula they teach. Dont sweat, his "only way to make money now" isn't the only way.

 

[OKFFW]

Being the kind of person who probably over-thinks things a lot, I'm getting pulled in all directions when it comes to investing strategy. Few of us have an iron clad strategy in place at the beginning and it probably evolves as you gain more experience but how do you deal with the constant distractions of new "hotspots", ideas etc?

*Bold mine for emphasis.

I think you are absolutely right that not many have an iron clad strategy in place at the beginning. And that is probably exactly the reason so many lose focus.

I would suggest taking the time to work out what you want, what your appetite for risk is, where your strengths and weaknesses lay, what you are comfortable with etc. Then spend some more time learning about various strategies until you find or develop something that fits well with all of the above, that you believe you can implement and that you believe will achieve what you want. It may not be "iron clad" because circumstances change but it should be well and truly firmly in place rather than some vague idea. Once all that is done then just focus on working the strategy and forget about the rest.

 

[westminster]

I'm like a gerbil on amphetamines some days - the appeal of so many strategies which all *could* work but which one is for me.

I'm not exactly stable in my strategy but it is somewhat set in 'building' profits/equity/yield. I like building, it is my passion and as it's my passion I don't mind spending time on it.

I work full time and I'm not giving that up for any cockamamie fly-by-night scheme just yet. My income means that I know all my bills are paid, the kids are fed, the mortgages are approved and I like my job.

For me it would be too stressful to start a business and all the risks. I have quite a few ideas of what might work but I consider all higher risk than developing.

So for now I will be a part time developer and choose projects which are in Perth. Building 4 villas at once is actually more time efficient than buying 4 established houses in my opinion

 

[china]

Being the kind of person who probably over-thinks things a lot, I'm getting pulled in all directions when it comes to investing strategy. Few of us have an iron clad strategy in place at the beginning and it probably evolves as you gain more experience but how do you deal with the constant distractions of new "hotspots", ideas etc?


This is wasting my time. How do you pick one strategy and stop getting distracted by other ideas?

You are not alone. A lot of us have an idea that we need to be investing. Then we come to the idea that property investment is an essential part of the whole investing mix. Then we start looking into it and there will be a plethora of opinions and options. Analysis paralysis sets in. Procrastination. Indecision. Fear of failure.

So I really don't know the solution to your question. I have recently gotten ideas for loan structure from this forum and have asked the CBA for some info. Now it is about buying the first property - resi IP versus commercial - and this will be the next major hold up point.

 

[Of The Vultures]

I think majority of jobs get in the way of making proper money/financial freedom

I'd agree with that. I'm FIFO so the few days off I have I tend to spend with family. Won't let this become an excuse for inaction though.

His recent seminars have been hard sell

True, and it was cringe worthy to watch him say that those members of the audience not willing to sign up for his $5k program right then and there are just not committed enough and will probably not make it!

...focus on working the strategy and forget about the rest.

So right. I needed to hear this!

I'm like a gerbil on amphetamines some days - the appeal of so many strategies which all *could* work but which one is for me.

lol, exactly. That's my issue, which one?. I don't know if I can say I have a passion for building - I'm yet to build something. I do desperately want to have the choice to work rather than have to do it out of necessity. My job does get the mortgages approved but it also keeps me away from family for more time than I care for. But I have to say Westminster you are doing almost exactly what I want to do so perhaps when I'm in Perth one day we could have a chat over lunch, my shout of course

 

[Dazz]

“Knowing is not enough; we must apply. Willing is not enough; we must do.”

I like..........

 

[Charlotte30]

How do you maintain your focus

Intially to maintain your focus you have keep the end goal in mind. When you start your first project you are constantly wondering about your strategy. Experience and the economic climate refines/changes your strategy. To do is it to learn. For me I had to focus on the end result and stop listening to the chattering classes as it undermined my confidence. Now I look at a property, assess what can I do with it, and ask myself what are the upsides? Then make it happen. That is all about planning as I do not have any trade skills.

Charlotte30

 

[mattnz]

I was where you are not so long ago.

I took action and started developing... started small (2 townhouses), then picked up another 3 projects, each getting bigger than the previous one (5 townhouses, 6 townhouses and 11 apartments).

For me the key was taking action on the first development. When I saw that it was working so well that it gave me several years' salary as a profit, I found JV partners to invest in each of the following projects.

It has been very demanding, trying to manage so many projects, plus a fulltime job, but I needed to build a pipeline, to be able to move to fulltime developing this year. Property developing income is also pretty lumpy, so I am creating my website as a way to convert what I am passionate about into a regular income. That should assist with my wife agreeing to me leaving the day job, as there will be money coming in every month to pay the bills.

Developing can be time consuming, but the most difficult part is the amount of time that needs to be spent during work hours, when your architect, engineer, lawyer, bank manager etc are working. Having the right type of small business should give you greater flexibility in the hours that you work than a job would.

 

[westminster]

I was where you are not so long ago.

I took action and started developing... started small (2 townhouses), then picked up another 3 projects, each getting bigger than the previous one (5 townhouses, 6 townhouses and 11 apartments).

For me the key was taking action on the first development. When I saw that it was working so well that it gave me several years' salary as a profit, I found JV partners to invest in each of the following projects.

It has been very demanding, trying to manage so many projects, plus a fulltime job, but I needed to build a pipeline, to be able to move to fulltime developing this year. Property developing income is also pretty lumpy, so I am creating my website as a way to convert what I am passionate about into a regular income. That should assist with my wife agreeing to me leaving the day job, as there will be money coming in every month to pay the bills.

Developing can be time consuming, but the most difficult part is the amount of time that needs to be spent during work hours, when your architect, engineer, lawyer, bank manager etc are working. Having the right type of small business should give you greater flexibility in the hours that you work than a job would.

I'm hoping to follow in your footsteps Matt.

I need those crucial years and developments under my belt so that one day the bank will take it seriously. Until then full time work to service my loans is the answer for me.

I have a 9 day fortnight which is also handy. I work a 9hr day then have a day off every fortnight. I use that day to run around doing development work when I need to.

 

[westminster]

lol, exactly. That's my issue, which one?. I don't know if I can say I have a passion for building - I'm yet to build something. I do desperately want to have the choice to work rather than have to do it out of necessity. My job does get the mortgages approved but it also keeps me away from family for more time than I care for. But I have to say Westminster you are doing almost exactly what I want to do so perhaps when I'm in Perth one day we could have a chat over lunch, my shout of course

Sure thing. There are many many people that hate building - I'm the complete opposite.

One day I hope I'll be able to live off it, until then I have to cram it into my life until I have enough experience and $$$

 

[mattnz]

I have a 9 day fortnight which is also handy. I work a 9hr day then have a day off every fortnight. I use that day to run around doing development work when I need to.

I have taken purchased leave this year, for an extra 8 weeks, on top of my normal 4 weeks. This will give me time to get everything done, while from a serviceability perspective, I am still employed fulltime.

 

[Of The Vultures]

Yes I think managing full time work with property investing and developing especially will be a big challenge. Kudos to both of you Matt and Westminster for managing it. I bought two houses in the last few months and finding the time while at work to deal with the bank/solicitors etc was hard enough and those were simple transactions. Add FIFO (12hr days) and time zone differences to the mix (I'm interstate) and it becomes very challenging.

For now, I need the job for serviceability so I'll just have to fit development around it just as you both have.

Curious though - have either of you done any courses either in property development or building/construction? Both are available via OTEN distance education and at around $1400 they are much cheaper and probably as much if not more value than the various seminars spruiked around. It's just something I'm considering although I realise my first development will teach me more than any course can.

Cheers

 

[mattnz]

FIFO will be very challenging I think. Not so much the distance (I am managing it remotely ok), but not being available at key times will be very difficult, although time zone differences may be your saving grace. Just let people know to contact you at the very start / end of the day, so you can stay on top of things.

I have done a couple of courses. The Bob Anderson billion dollar developer 3 day course is very good, but costs $4k. I am setting up my own online course in the next few months, which will be much less expensive.

 

[el caballo]

I have taken purchased leave this year, for an extra 8 weeks, on top of my normal 4 weeks. This will give me time to get everything done, while from a serviceability perspective, I am still employed fulltime.

Brilliant!

 

[Of The Vultures]

Cheers Matt, thanks for that. I'll keep that one in mind. I'll look out for yours too when the time comes.