The Property Voice Podcast - Series 1: Episode 10 The Investor Mindset
What is a property investor mindset and do we have it? Today’s show takes a look at some of the principles of a successful property investor and portrays these in the Property Investor Mindset Puzzle. Time to evaluate where your personal strengths and weaknesses are and which gaps need to be plugged. Yes, it is a big fluffy at times but many would argue that without the right mindset that we cannot realise our ambitions to become a successful property investor too.
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Resources mentioned
- Property Investor Toolkit – here is the book link on co.uk & amazon.com in case you would like to get yourself a copy to accompany this series
- Your Voice – Thanks to Julie from Hogarth Property Services, Chiswick for her question on using a pension to invest in property
- Shout Out – The Millionaire Master Plan by Roger Hamilton
Today’s must do’s
- Undertake a review of your mindset and identify any gaps that need plugging: consider the list of skills & competencies, principles, personal qualities & characteristics and habits & routine to see how you measure up.
- Subscribe, rate & review the show in iTunes…and while you are at it please help us to spread the word by telling all your friends too!
- Send in your property stories, questions or moans to podcast@thepropertyvoice.net and we will try and feature YOU on the show too!
- If you would like to, grab yourself a copy of the book: Property Investor Toolkit (link in Resources above)
Get talking!
- Join in the discussion, either here in the comments section below, or anywhere else on the Blog
- Start a conversation on Twitter with us @PropertyVoiceUK or on our Facebook page
Transcription of the show
Hello and welcome to another edition of The Property Voice Podcast, my name is Richard Brown and as always it is a pleasure to have you join us.
Last week’s show was something of a bonus when we took a closer look at funding our property investments. This week, we shall move from the concrete to the esoteric, or if you prefer: the fluffy stuff, as we consider what constitutes ‘the investor mindset’. As you will hear later on I am not pretending to have fully cracked this myself as yet and nor am I intending to come over as a wise Yogi, Tibetan Monk or some kind of Oracle either. The idea is to share some things that I have learned and continue to learn each and every day…I have really enjoyed putting this episode together but at the same time am a little nervous in sharing it, as it is so often left unspoken of…I hope you like it therefore.
No Casa today, so let’s get inside our heads a little with this week’s main topic shall we?
Property Chatter
The Investor Mindset – what is it and do we have it?
Now, I am by no means the finished article and I still have my own personal growth going on, even at my tender age…but I never stop learning and I strive to ‘beat the course’ as they say in golf…I am aiming at improving my personal best all the time; so I speak not as a preacher here, but as a companion on the same journey as you…
When starting to think about today’s show, I had a puzzle in my mind…different pieces that fit together to make a complete picture. If I can figure out the tech, I will try and show this graphically in the show notes for you…if not it will just come as a quadrant instead!
So, over the next few minutes, I am going to run through each piece of the puzzle and present what I believe are the common characteristics, or foundations, of an investor mindset in each area. Then, as I go (or perhaps later on) we can evaluate how we are doing in each area ourselves? We can ask ourselves the question: How do I fare? I noted a couple of improvement areas myself in pulling this together for you if that’s any consolation
Some people are going to be stronger, or prefer even, some areas more than others – so, what if we have some gaping holes? We should at least aim to plug the gaps and we can do this through three principle ways:
Progressively learn to acquire skills and knowledge to plug our gaps, and / or
Practical application to refine in areas through repetition, and /or
Partnering with others that plug our gaps, and / or
Once we go through the entire puzzle…will we need a mindset or ‘paradigm’ shift, or are we the complete picture?
A personal review may reveal the need for change…but worry not, we all have the capacity to change if we really want to; the key to change is motivation…
Motivation – internal vs external, pain vs pleasure, gradual vs shock…ideally we would like a strong internal desire, a pleasure orientation & a gradual application to bring about change and our desired result. The truth is that instead we often require an external stimulus, the threat of pain and a shock to take corrective action. The good news is that we can create the latter scenario without necessarily having a near-death experience of something like that…it’s all in the mind…but we can revisit that concept a little later on…
Now, let’s take a look at this mindset thing or as I am calling it…The Investor Mindset Puzzle
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Skills & Competencies
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Principles
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Habits & Routine
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Personal Qualities & Characteristics
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These puzzle pieces are interdependent or symbiotic as they say in biology – there is no use being very strong in one or two areas; a balance is going to be the best approach over time to achieve a healthy composition
A short word on our philosophical outlook before we leave the subject, which of these polar extremes do we tend to believe in:
- An entitlement or value-based mentality?
- An attitude of lack or abundance?
- A ‘get’ (what I want) or ‘give’ (what can I contribute) attitude?
- Money and wealth is only evil or can it be used for good?
- You see, our beliefs will ultimately dictate our outcomes in life, or results as we see
- Beliefs => Attitudes => Actions => Results: ergo to change your results, we need to change our beliefs
So, what is your personal philosophy then?
So, have I stimulated you to re-evaluate your current position and desired course by reflecting on the Investor Mindset Puzzle? You see for me, property investing, as with any pursuit or endeavour, is as much about a personal growth journey and voyage of discovery as it is of property, money and all that stuff. In fact, I would go as far as to say…there is no point in having the money without that journey in the first place. Others may say, we won’t see the end result anyway without growth…I will let you decide on that.
YOUR VOICE
And now to our listener question, which comes from Julie:
Well thank you very much for raising this question Julie, from Hogarth Property Services in Chiswick!
Pensions invested into property…before normal retirement age is the question.
Before I begin, I need to highlight that I am not a financial advisor and so I would encourage anyone, including your hopeful investors in Kent, to consult with a professional advisor before doing anything else.
However, essentially if we happen to have our pension invested into qualifying pension wrapper, i.e. a SSAS (small self-administered scheme often invested through a small company) or a SIPP (self-invested personal pension if invested personally or transferred in); then it is possible to invest in some type of property yes. However, it is not permitted to invest in residential property, only commercial property. It could be invested into a commercial property that is to be converted into a residential property but then the pension needs to dispose of it once converted.
A pension fund can also use leverage to grow the value of the fund. For example, tax credits on contributions get added to the fund to begin with and then the fund can under certain conditions borrow up to 50% of the fund value.
In addition to direct investment in a property, they could potentially also lend money to a property developer for a return, as long as they are unconnected to the pension-owners.
I should say that I am not recommending they do this and in fact there are lots of risks associated with doing so, such as concentration risk in property as an asset class and suitability of a single investment that could lose a part of or all of much needed pension provision. As I say, best to speak to an IFA but it does present another funding route to investing in property, which is related to today’s theme and so, I thank you for raising it Julie.
Good luck with your property business in Chiswick and with your investor friends.
SHOUT OUT
The Millionaire Master Plan – Roger James Hamilton
This is a great book recommendation with a twist…
Take the Millionaire Master Plan Test – you get a free code by buying the book and then you can take a test that will reveal what type of genius you are: Dynamo, Blaze, Tempo or Steel. Plus you get to position yourself on one of the nine levels of the Wealth Lighthouse too. Many of these types of test cost a fair bit of money, so getting a free one just from buying the book also represents excellent value…now I hope that is not poor man’s thinking!?