We continue the mini-series of conversations with my very smart property buddy, Rupal Patel. This week we are sharing our thoughts on what we call a property reality check. When you think of people in property, do terms such as authentic, genuine and trust rise to the forefront of your mind?
Like all industries, there are good players and not-so-good players. Today, we want to share some of our thoughts on what to look out for in reality and how to protect yourself in what is one of the biggest investments you are likely to make. Trust your gut, ask good questions and look for the personal motive are all in there...plus more besides!
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Transcription of the show
Hello, and welcome to another episode of The Property Voice podcast. My name is Richard Brown and as always, it’s a pleasure to have you join me on the show again today.
We continue the mini-series of conversations with my very smart property buddy, Rupal Patel. This week we are sharing our thoughts on what we call a property reality check. When you think of people in property, do terms such as authentic, genuine and trust rise to the forefront of your mind?
Like all industries, there are good players and not-so-good players. Today, we want to share some of our thoughts on what to look out for in reality and how to protect yourself in what is one of the biggest investments you are likely to make. Trust your gut, ask good questions and look for the personal motive are all in there...plus more besides!
Property Chatter
Transcription of the Show
- Even if you're starting out, just say, "I'm recently starting out."
- So, Rupal, here we are again.
- Hello, Richard.
- Hi, surprisingly.
- I know. Funny to see you today
- Lovely to see you, see you a lot. But I'm just going to address the cameras, so this particular episode, we're going to talk about what property reality check.
- Yes.
- Why don't you just kick us off Rupal, what are the realities of property?
- Yes, yeah.
- Things that you don't like so much as well.
- I think the biggest reality check for me, is that I find myself sort of talking about a lot with in some ways sort of newer investors who don't have as much experience is really just to not always believe the hype. And that can be taken in so many different directions. But one in particular is so for example, you know if you are in property investing circles, you go to the networking meetings. You might have done some training, and you know all that kind of stuff. Its all of which can be great. You know I've done some property specific training. I like going to a good property networking meeting. Not all are created equal. But you go and you experiment, and you see what works for you. But what I don't like is a lot of the hype, and a lot of the what seems to me is just really sort of marketing speak about what property investing is like. You know people will be like, "yeah I've made.."
- "Ill be a millionaire in ten minutes."
- "Yeah, ill be a millionaire in ten minutes, or you can do this, ya know this is this amazing deal that I've done." "That's netted me like x-bazillion pounds." its not nothing, I don't ever want to take away from another's success. If it is well and truly a success. And I think that's what is sometimes hard to sess out. Its like when are people being genuine? And when are they cherry picking information. Cherry picking data. Or very selectively presenting a deal. And so not again not to take away from other people. But as a recipient or as a, of this information, I would just say, ask good questions. And take things with a bit of a grain of salt. You know ask behind the sexy headline figures, and the profit numbers and all of that kind of stuff that people are telling you. You know what is the reality? What went into it? What is the actual performance? And not just the projected performance. What is the actual time scale it took? For them to get to this amazing six figure profit deal or whatever their talking about. Because again not to take away from the people that are doing it. But I think sometimes we can get so hung up on the headlines, and the flashy, sexy numbers and details. That we forget that behind all of that success is a lot of grafting, a lot of grinding, a lot of challenges. And that's the "non sexy" stuff that isn't talked about enough. Or people don't always go into it realizing that's what its going to take. And you and I sort of ya know to use the term, you know were a bit sort of veterans of this. To some extant you know. =yeah.
- We've had the highs we've had the lows. We know the pain that goes into every single success that we've experienced. And so its just to be a bit more open about that, ya know to encourage others to not just talk about the successes. But some of the challenges because that is the reality, ya know? Very little in life comes without a cost, in time, energy, effort, whatever. And so ya know, again just sort of instead of just hyping everything up, lets just be a bit more real about it.
- I'm glad you said that yeah, being real, authentic, be genuine.
- Yeah.
- So much you can talk about there, the one thing that really pops into my mind, I interviewed a man called John Howard. I don't know if you know him.
- I don't know him.
- John howard, he's a property trader and developer.
- Okay.
- He's really a veteran, four decades.
- Wow.
- In the business.
- Wow.
- So interviewed him, in fact I read his book before I interviewed him for my podcast. And one of the things he wrote in his book was this, in his 40 years he said he never had a developer project been delivered both on time, and on budget. And I asked him this, I said that's incredible
- Yeah.
- It was also refreshing by the way.
- Yeah.
- To see someone actually write that down. And be real about it.
- Who's, yeah.
- But I asked him the question, and he was like yes its more about version projects in particular. You can have really, had not both of those things happened together and that's in 40 years.
- Yeah.
- And so um I guess my take away from that is, what I don't like in so far, is the fake it until you make it thing. Type of thing.
- Yeah.
- Now don't get me wrong I think if your starting out and your trying to convince people to back you or take on service that your delivering, you need to put your best foot forward. You need to present yourself in the best possible light.
- yeah.
- But um don't fake it, don't have a photograph of yourself in front of a Ferrari, if you don't own a Ferrari.
- I let people assume that its yours.
- Yes that's faking it until your making it, and I don't like that.
- Yeah.
- Ya know so, if you be yourself. And if your genuine I believe, and if your recently starting out say I'm recently starting out.
- Yeah but these are my plans, this is the very well thought out structure that I want to proceed with. This is the do diligence that I've done. That's the thing is like ya know, you don't actually have to fake it. You, all of the preparation that your doing, that you would have to do for yourself anyway. If your sharing that with other people, that's should be enough of a credibility. Um ya know, sort of stamp of approval. Whatever you want to call it. Because that is what is actually important. That's the substance, its the thought, the time, the effort. The research that goes into everything, that your doing. Or should be doing anyway. That if you share it with other people, ya know its almost hard not to be impressed. If its done very thoughtfully and carefully.
- Yeah, and it reminds me of a colleague. When I was in corporate land, before I sort of came into this crazy world.
- Yeah.
- I had a marketing director who I'm quoting. And he said to me, he actually used to have a quote of the day. I used to love that.
- Oh okay.
- This one particular quote of the day, has stuck with me. And we just kept it between ourselves.
- Yeah.
- It was this. "Always look for the personal motive." so if anyone is presenting something to you, whether its a proposition or service. Or any kind of offering. What is their personal motive?
- Yeah.
- Now it doesn't mean that its a bad one.
- Yeah exactly.
- Because everyone's got them, for what were doing.
- Yeah, yeah.
- But look for it. And then once were able to understand, maybe we can ask some questions.
- Yeah.
- What's in it for you.
- Well I was just going to say exactly that. Don't sort of assume, don't try to play that game. Just ask the question. What do you get out of it? Because obviously for it to be mutually beneficial both parties have to benefit. So if someone is presenting something to you, just ask the question. Ya know what are you getting from this? And be okay with the fact that of course if your getting something than the other person should be getting something too. And that's just the reality of business and relationships.
- Yeah absolutely. So you talk about research and doing your do diligence. And that something I strongly believe. And I'm looking at my stomach. Its probably not a very good thing to do in video. But I'm just talking about getting in touch with my gut.
- Yeah.
- Ya know getting in touch with that instinct.
- Yeah.
- That judgment, but equally don't just rely on it. Particularly not really good. So check.
- Trust but verify. The great thing about our guts actually, is that apparently our guts literally have some ridiculously high billions of brain cells. Like neurological cells. So clearly there is something to trusting your gut and another great quote someone said.
- There's science there.
- There is science there. I've probably butchered the numbers. But another friend has said a quote that I love is, "use your gut to say no, but never to say yes." and again its that whole idea of trust but verify.
- Yeah, so you make some good points about looking for personal motives. I think ya know, trust and verify. Be in touch with your instincts. Really good advice. I'm trying to think where else we could take this conversation. The realities of property.
- Yeah I would say the other one is, that its not sexy and people don't like to hear is long time and its not it might be project specific but ya know, we all set these targets whether its like, financial target or property number target. And the reality is that the universe has absolutely zero stake in making that target come true. So whether it takes you ten years or five years is almost irrelevant. And maybe it will take you ten years, instead of five. But the whole, the key to focus on is that if it is something you truly care about it doesn't matter. And as long as your constantly making progress along the way, doing the right things consistently. Ya know, educating yourself. Making sure your sort of protecting yourself. Of all of that kind of stuff, doing smart things, adding value. It shouldn't matter. And so be prepared for things to take a little bit longer. And if they do, be prepared to have your goals be totally, or to at least recognize that your goals and targets are just arbitrary. You've just chosen them. Why should it take one year instead of ten. Why should it be a 20k instead of 100. Ya know whatever it is that were choosing, just recognize the fact that it is arbitrary. But because its arbitrary, it doesn't matter if it takes a little bit longer. Ya know to come to pass.
- I think when you were talking it reminded me about the idea that we usually, overestimate what we achieve in the short time.
- Yes.
- And massively underestimate what we can achieve in the long-term.
- Yes agreed.
- That's what came to my mind.
- Yeah agreed.
- I think probably thinking about a closing comment, for me one of the most significant things I've kind of learned recently is, how much liquid cash or easily liquidate-able assets you need in your net worth. And whether its project specific, portfolio specific, or personal net-worth specific. I think ya know its probably about 10-20% of liquidate-able ya know funds. And this is something that I was very greatful to have in my own case. One thing about, this is all about risk tolerance.
- Yeah.
- And I was chatting to an investor and friend of mine. And she was saying, I feel poor if I don't have this much money in the bank. And I said where did you get that number from? Because its a very rounded figure.
- Yeah.
- And she said "I don't know, it just feels like a good number to have." and I said what is that as a percentage of your net worth? And we worked it out. She hadn't done that. It worked out at about 15%. And then we had this conversation about what is a good number to aim at. Because if your net worth changes, maybe that number should change.
- Yeah.
- So she's probably thinking more of that. She isn't good at holding cash. She's got liquidated assets. My thing is similar to her scenario. But we talked about someone she knew, who's got zero in liquid funds.
- That's really dangerous.
- Yeah very dangerous. So I know this is kind of a boring topic. But you know having cash on hand. And not just take advantage of opportunities we have, and also...
- Contingencies.
- Contingencies. I think that's my closing comment. I think I'm getting the signal I'm talking a little too much. I think as long as you haven't got any passing comment?
- No its been great. But like you said its a little bit boring. But ya know what, that's the reality of life, and success sometimes. It just is boring sometimes. You gotta be comfortable with that. And there's your property reality check right there.
- There it is, you've just closed the show for us. The reality of property, two very honest and genuine people. Thanks Rupal
- Thanks Richard.
- 11-23 I mean this close, yeah we did.
- Its the signal thing
That's all from me this week, remember if you want to talk about anything from today’s show, or just talk property investing more generally, email me at podcast@thepropertyvoice.net, I would be happy to hear from you! The show notes can be found at our website www.thepropertyvoice.net
Thanks very much for listening again this week, so all that left to say is ciao ciao!