When you are faced with difficult situations do you fight, flight or freeze?
When you are on a high and then something brings you down, do you let it destroy your day or do you quickly pick yourself up and carry on?
These are 2 key questions that you should ask yourself day in and day out. Only you will know the answers to these questions.
If you do have a high and then something destroys that high (and your day) then think about how to react differently next time. Or at least how to not let it take your high completely away from you.
State of mind is key in any walk of life no matter whether or not it is travelling, working, starting a new venture or whatever else it is that you do.
Having a strong mentality will give you unbelievable strength when you least expect it.
A bridging lender may change the criteria at the very last minute and make you pay extra for solicitors fees otherwise the deal doesn’t stack up. That’s happened to one of our property purchases recently. The bridging lender that was being used for our buy to let to HMO conversion insisted at the last minute that we get extra advice from an independent solicitor otherwise they would not agree the finance for the deal.
A big blow to say the least.
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Instead of throwing the toys out of the pram I calmly spoke to my broker and got her to instruct the bridging company that I would only agree to do it as long as they allowed me to adhere to company law principles and sign everything off on behalf of the company.
Plus my business partner was in South Korea at the time which played into our favour as well.
The toys could have been thrown out of the pram quite easily. No one necessarily enjoys spending extra money just because a company changes their rules to suit them.
It is little things like this that can easily make or break an investor.
It would have been easy to say no and not get it done. It would have been easy to get annoyed, upset and incredibly frustrated at this last minute change of requirements.
It would have been oh so very easy to just chuck in the towel and to have scrapped the whole deal.
At times like this the key thing is to take the time and remember why you are investing, why you are doing what you are doing and what the bigger picture is at the end of the day.
This is fundamental.
The end goal was to convert this property from a 3 bed mid terrace buy to let to a 5 bed HMO. The NET monthly cashflow from this will be approximately £750 pcm.
Therefore the question should be this. Was it worth getting the extra (and inconvenient) legal advice at a cost of £200?
Absolutely. This was because I knew that the end goal would be a property that cashflows approximately £750 per month with a total NET Return On Investment of 26.62%.
The even bigger pain point came late in September when after all of this, all of the extra costs and paperwork, we got outbid (gazumped) on this property. The agent had another interested party and they put forward a higher offer right at the last minute.
We were just about to simultaneously exchange and complete!
Fuming was an understatement. On top of that a few choice words came out that won’t be repeated. Those choice words were said in an empty room and not to the agent although it would have been tempting to do so.
After all, she was just doing her job and people should not be criticised for that.
How many people do you think would have just said ‘Right, I quit! This property thing doesn’t work’ or how many people do you think would not look to buy a property again out of fear of getting gazumped.
Up and down, up and down and up and down. Property can be like a roller coaster ride sometimes.
The important thing is not to let the down times effect you and this is why having a strong mentality really is key in the property world and in life in general.
The strong-minded people will take 5-10 minutes, or even a day, to let off some steam, dust themselves off and then just pick up where they left off. That is key because it is those very people that will just soldier on and achieve great success.
This is what I did. The younger version of me would have gone on the war path and starting f-ing and blinding to everyone and anyone about how unfair the world is and how it is not right that we were gazumped and that agents can treat people like that. This would have been incredibly detrimental as it takes only a minute to ruin a reputation and people would not want to deal with such a rash and rude person.
The newer me let it all out of my system and turned the negative situation into a positive situation by looking at the advantages of this deal NOT going ahead. It also helped to look at what went wrong and why it went wrong. The key learning that I took from this was to get the agent to take the ‘Sold STC’ board down. I hadn’t requested this and so someone had spotted it, enquired and then put in a higher offer.
Everyone channels their anger in different ways and everyone acts in different ways given situations but the key question remains the same.
Do you fight, flight or freeze?
If you fight then you will carry on. If you flight then you will purposely not do it again and if you freeze then that is just like being in no man’s land and you will not progress at all.
Getting gazumped is never a good thing in property. There are many things in life and property that are good ideal. Bereavements, losing your job, losing out on a deal, tenants trashing a property and so much more.
You can achieve anything and everything that you set your mind to achieve. Your vision and why should be gigantic and so strong that it naturally propels you forward. Your vision and value need to be referred to when times get tough and when you feel like throwing the towel in.
Working on your mentality and mindset is fundamental to your success. The great thing about most of the mindset books is that they are evergreen. They are very unlikely to change over time.
Think about it this way. Why is Sir Richard Branson where he is and you are where you are?
Sir Richard Branson has 24 hours in a day and so do you. As that is the case, what is stopping you from achieving what Sir Richard Branson has achieved?
Go out and do it! Achieve what you want to achieve and open up your mind. Anything is possible. Nothing is impossible.
If you do not know of any good or fundamental books to read or to listen to on Audible then check out the following:
- Think And Grow Rich by Napoleon Hill
- How To Win Friends And Influence People by Dale Carnegie
- Rich Dad Poor Dad by Robert Kiyosaki
- The Power Of Ambition by Jim Rohn
The stronger your mentality then the more you will achieve.