What to do when money doesn’t motivate…

We’re taught to trade our time for money, but there is little we can do to influence how much our employer pays us. So the net effect is that we take the wage we’re offered and in good times we may get a 2-3% increase year on year.

For most people, that’s enough. As long as they can live on their income they are happy enough with their income for the level of job they are doing. For many, they have no real desire to move up the ladder to the next level, so they know their income is fairly set.

Having spoken to many Finance Managers and Directors over the years in my role as a Senior Manager in Pay and Pensions, I’ve discovered that they fully believe that their staff are ONLY motivated by money. If they offer more income or better bonuses they expect harder work and better performance! What do they expect? Blood?

Many staff will feel as though they’re doing all they can anyway. There is no more effort! Right?

Well, the interesting thing is that many people love their job, or they’re fairly happy with their job to the point that more money isn’t necessarily going to change the way they work or the hours they are prepared to put in. Sound familiar?

What would motivate you to do things differently? Have you ever thought about that?

I’m going to assume that as you’re reading this article you’ve got an interest in property. You probably also have an interest in increasing your motivation.

Are you motivated by money? Or does the thought of earning a significant amount of money make you feel a bit embarrassed? Are you stopping yourself from making money because you want to make sure you still fit in with your friends?

Often we’re encouraged to imagine being a millionaire. For many people this simply isn’t realistic. Rather than insisting you visualise what it feels like, I’m going to ask you a couple of questions instead.

• Would you be more motivated by an incentive of £5,000 cash or a fully paid cruise in the Caribbean?
• Would you be motivated by an extra day or two off – fully paid?
• Would you work harder for a bonus of a new TV; audio kit; ipod; ipad; laptop and iphone?
• Would you be motivated by being offered a beautiful place to work at no extra cost?

Ask yourself – what is it that you are currently giving up in order to do the work you do?

In most instances it is time – for yourself, with family or doing the things you want to do.

So, how would things be different if you had more time?

Does having more time on your hands sound appealing?  Early retirement has been bandied about as an aspirational goal for some years now, but many people struggle with the idea of ‘not doing anything’!  I hear “I’ll have to do some sort of work or I’ll get bored.”

The beauty is that these days retirement means being able to do the things we want to do – and we are able to motivate ourselves with the promise of being able to choose.  What would you choose?

For others, motivation is reduced by the thought of having more time on their hands.  Some even struggle with being in their own company.  Many people who set up their own business struggle without the discipline that work inflicts.  If work provides the basis for your social life and gives you purpose then the idea of having time to yourself could be a real barrier to some of the aspirations that others are trying to create for you.

You don’t have to give up work to have more money or to invest in property.  Sometimes it actually helps to have an income – particularly when it comes to getting mortgages.

If you want extra income, but dread the thought of giving up work, then how about aiming to match your current income so that you can have the house you have dreamed of, or the holiday you would really like.  Match the amount you earn from property on a monthly basis with the monthly amount of the reward you desire.  E.g. school fees – what is the cost per month that you would need to cover; A dream holiday – how much per month would you need to set aside?

How about the best of both worlds?

Many companies these days are prepared to give employees a sabbatical in order to take time out to do what they would like to do – this allows you to go and explore other avenues, or in the case of the property investor to set up the processes that will enable them to purchase property systematically when they are back at work.

If a 3 month or even 6 month sabbatical would suit you so that you can get things started then how would you use your time?

It may be that during this process you are able to work out an exit strategy from your work if you would really like that.  You could begin to work part time if your profession allows, and if you allow yourself that liberty.

How long would it take you to replace your income?

In reality it would not take as long as you might first imagine to replace your current income through property investments.  If you replaced your income, would that make you a millionaire?  No, I didn’t think so.

In which case what does ‘Millionaire’ mean to you?  What could you make that word mean for you?

For example if the goal you aspire to is to be a ‘Millionaire’ and that seems so far off that you never actually take the first step then it is in fact negatively motivating.  It is de-motivating.

So if your own Millionaire status aspiration is only once, twice, or even three times your current income then make that you goal.  After all, how would you feel if you were earning twice your income from property as well as the income from your job or business?  Pretty good I expect!

• Is that more achievable?
• Is that more in keeping with your social group?
• Is that going to be easier to achieve for you in the next year or so?

So, if Money is not really your motivator and thinking of yourself being a millionaire is a bit embarrassing then change your thinking NOW.

What does motivate you?

What do you need to do to put in place that reward that will motivate you?

Are there others involved in achieving that reward (i.e. going on holiday)?

Do you need to enquire at work to see how your ideal can be accommodated?

The saying goes ‘give a job to a busy person’, so the less time you have to achieve your goal in on a weekly basis, then potentially the more likely you are to achieve it.

Make your style of motivation work for you.

Happy investing

Yvonne

Show Me The Money!

How ‘Sitting by Nellie’ could speed up your progress.

Imagine that you go skiing and you are given the best fitting boots, the exact length skis and clothes that guarantee you keep warm.  You’ve never skied before so you start at the top of the slope and point downwards because that’s what you’ve seen on TV.  Very soon you’re going to end up falling hard as you have the practicalities sorted out, but not the know-how.

Yet, this is what we often expect of ourselves with property investing.  We hear the latest idea which sounds fantastic, but the reality is that it pushes you out of your comfort zone and there are elements that you wish you could just see happening first so that you got an idea of how to do it yourself.

The prime example of this is talking to motivated sellers – you just go and talk to them and see what happens.  Right?  Wrong!  You need to be prepared and know the sort of questions to ask.  Make yourself a list in advance; Go with someone who’s more experienced; Give yourself breathing space before you make your offer; Ask for help if you need it.  These conversations with motivated sellers (and less motivated ones) take time to get used to, and are easier for some than others.

Many of us at work are promoted to the next level and are left to flounder because we’re supposed to guess how to do the job.  We’re expected to know instinctively how to manage a team even if we’ve never done it before.  We’re supposed to understand the processes even if there are no documents to follow.  If there’s no handover period then what are your chances?  Pretty low really and yet that is how businesses tend to operate.

Are you very practical but prefer to see and copy? This process is called ‘sitting by Nellie’. We observe and copy and as a result there is a much higher level of success than where we have to imagine for ourselves how to do something.   Think back to when you had art lessons.  The teacher demonstrated and you copied – the outcome was far better than if you had just had a go on your own.  A lesson on perspective meant that you could suddenly draw the road that went off into the distance and looked as it would if you could see a real street.  What a difference this made because someone had shown you what to do.

If you don’t have access to a mentor or someone you can shadow then perhaps you need to start networking more.  There are plenty of people in the same boat.  If you could team up with them then between you the full picture can be gleaned from the sellers, you can both have input into how the figures would work out and it also gives double the chance for the seller to connect to one of you.

If you are fortunate enough to know someone who will show you the ropes and help you get started by following them on their visits then you are much more likely to do well and to see successful outcomes to your visits to motivated sellers.

If you don’t know anyone then you will need to go on a course where you can try these things out in safety or see examples of them on DVD’s.

• If you are happy practicing in your own home or with a buddy then try downloading the examples from my FREE STUFF – www.YvonneEmeryCoaching.co.uk then select FREE STUFF and Role Play with motivated sellers.  There are 6 examples for you to try.
• If you want to follow someone who is meeting sellers then how about you setting up the appointments and asking another investor to go with you.  If you take the initiative then it’s easier for someone to help you.
• Make sure you take your crib sheet with you of the sort of questions you need to ask.  E-mail coach@YvonneEmeryCoaching.co.uk for a basic list of useful questions.
• If you would prefer to practice before you do it, an d see first-hand what happens when you start talking to a potential seller then come to the Negotiating Techniques Day in Birmingham on Saturday 10^th July.  You’ll learn how to make conversations easy, do the maths and make great offers so that your confidence will help you achieve greater results.

Are you screaming that you want your autonomy and prefer to do it your own way – great, then you should use that enthusiasm and creativity and get on with it.  For the majority however this is not true.

When you learn most things it is by observation as well as practical doing.  Equip yourself with the know-how and you’ll be skiing down that slope like a pro before long.

Remember always that this is a numbers game.  How many properties have you visited?  How many sellers have you spoken to? How many were motivated?  If the answer to this first question is less than 20 then it’s not surprising that the bargains aren’t popping up for you.  One of my MINI Group members had visited 21 properties within 3 days of learning the techniques and the questions to ask.  They’ve now visited over 30 and some of the discussions are getting close to a deal.  Interestingly they still haven’t visited half of the available properties within the area they are looking.  If you’re not prepared to put in the leg work then you’re going to have to wait for those deals to appear.

Join a MINI Group near you at just £100 per month to YPN subscribers

• 3 hours of training, mentoring and coaching
• As good as 1-1 time with an expert working on your own portfolio
• Maximum 6 people and minimum of 3
• Do you have some friends who’d like to pal up to make up a MINI Group?

Call 0845 094 6628 for further information

www.YvonneEmeryCoaching.co.uk/MINIGroups

Just Do It! February 2010

How to choose the right investment strategy for YOU.

Let’s get right down to business this time and make some constructive decisions.  Lots of questions, but what comes out of this is a way forward that you know you will take.

This month we are going to explore how you can choose a strategy that works for you and make it happen.

What are you trying to achieve?

•    Enough income to replace your current income
•    An extra £1,000 per month would be great
•    Cash-flow of £200 gross from each property
•    Cash-flow of £500 plus from each property
•    Easy property that doesn’t need any work
•    Property that needs general tidy up
•    Property that needs complete renovation – kitchen, bathroom etc.
•    Pension replacement income
•    A different lifestyle – income to allow you a few luxuries
•    The option to retire early

You’ll think of many more, and I’m asking so that you will then have a solid reason for making the investments, and have a clearer view of the type of property that will help you achieve this.

If you were going to make a difference to your life over the next 6 to 12 months what would help you do that?  Would an extra £1,000 per month on top of your wages help?  Perhaps it doesn’t matter about the income, as long as you change your job.  Do the kids want to pursue expensive hobbies which cost £100 per month, or more?  Would you like to be able to fund that Gym membership?

Why are you trying to achieve this?

If you can’t answer this simple question – ‘why?’ then the goal is probably not motivating enough for you.  The main reason we don’t ‘Just Do It’ is that we are not challenged or interested enough in what we are trying to achieve.  We constantly try to block our own progress either because of a fear of failure or a fear of success.  Yes, would you believe that a significant proportion of us stop that success subconsciously.

What is your financial situation? – be honest with yourself.

•    Significant equity in your own home
•    No equity in your own home
•    Savings of £50k or more
•    Savings – max £20k
•    Somewhere in between
•    Absolutely no money to invest
•    Able to get a mortgage based on income over £25k
•    Self-certificated income so mortgage is more of a challenge
•    No savings, no possibility of a mortgage

The biggest difference for people in the strategy they choose to pursue is their current financial situation.  Whichever situation you are in then you will need other people to help you and finding them can be your greatest achievement to date.

Time and Experience

•    Are you time rich and cash poor?
•    Are you cash rich and time poor?
•    Do you have lots of experience?
•    Are you just starting out?
•    Are you working full time?
•    How flexible is your working week?
•    Are you able to keep an eye on the deal provider’s messages?
•    Do you know how to do the due diligence quickly?

Have you been investing in property for years and now you’ve run out of funds, or are you just starting out and need other people’s trained eye to find you the property you require?

Find people you can team up with, even if it’s to encourage you to keep going.  You will find all the knowledge you need on this site and there are many others to look at if you are researching a particular strategy.

If you don’t know, or you don’t have time – find someone who does.

We’re not very good at delegating generally, but the better you can get at this then the more you will be able to leverage other people’s time, experience and money (and we’re all after ways to use other people’s money).

Personality

Personality plays a big factor in the way we choose to invest and even the way we dream our goals.  You need to get familiar with your own personality, make friends with it and realise your strengths and limitations.

Come and hear me speak at one of the networking events to find out more specifically about your personality and how it affects the way you choose to invest. www.YvonneEmeryCoaching.co.uk/events

The more reserved you are the more likely you are to choose an anonymous way of investing – getting others to do the deal making and negotiating with motivated sellers.  This might cost more money but will save you the stress of following up leads generated by flyers.  You might be enticed by the easiness of communicating by flyer and web advertising, but you will find yourself hesitating because you have no way of dealing with the calls this might generate.

Those who have more extrovert personalities, will be great at having the conversation with the motivated seller, putting them at ease and building rapport, but you might struggle with the dedication required for leafleting your area.  You might also be happy to chat but worry about having enough information to be able to explain the detail to the seller.

In reality we all need other people to have input into our system, whichever we choose, so that we can use our skills to best advantage and fill the gaps with other people’s input.

What are the strategies that suit you?

•    Buying deals provided by Below Market Value sourcing companies
•    Leafleting to find your own leads for distressed/motivated sellers
•    Picking one area and one type of property and repeating a system
•    Buying deals across the UK as long as the cash-flow is good
•    Buy, renovate and sell (works best in a growing market)
•    Buy low and re-mortgage to release the cash
•    Buy no money down
•    Purchase Options, Lease Options, Sandwich Options (no mortgage required)
•    Joint ventures

You can find information on all of these on the mentor sections of Just Do Property.

Most people wouldn’t get out of bed for an extra £200 per month.

Remember that for each property that cash-flows at £200 per month, that’s £2,400 per annum and £24,000 over 10 years.

£200 is not just for Christmas, but it’s for the rest of your life.

When will you start?

I have introduced my MINI Groups for 3 to 6 people to set strategies and buy property regularly.  Just £100 per person for a 3 hour session in a town near you.  Call 0845 094 6628 to learn more.

Happy investing
Yvonne

If you would like to discuss personal coaching/mentoring with Yvonne then as a Just Do It member you can get 20% off.  Phone Yvonne: 0845 094 6628 she can help you leap over your barriers.

Just Do It! December 2009

The philosophy of getting to the heart of the property world sits at the centre of Just Do Property and I will endeavour to help you each month to get straight to the main issues you face as an investor – whether you are just starting or whether you have been investing for some time.

Try asking yourself the following questions:

• What do I want to achieve?
• By when do I want to achieve this?
• Why do I want this now?
• How am I going to achieve this? – break each part down into   small pieces
• What other information do I need to have or be clear on to make this target easier to reach?

The more specific you are about each element of your goal the more likely you are to keep on track and be successful.

We tend to overestimate what we can achieve in a short period of time, and to underestimate what we can do over the period of a year or so.  This is because it feels like a big mountain to climb when you start out.

Let’s face it we’re all different and so you might like all the details, and then some more details depending on the answers before you make your decision.  In contrast you might not be interested in the detail, just the cash-flow, which means you’ll take a good deal because it looks good and then work out what to do with it.

If you do like the detail then in order to make the most of buying deals that other people have sourced for you then you need to have:

a)    A very specific crib sheet of how to do your due diligence fast (it doesn’t need to take more than 20 minutes when you know what you’re doing).

b)    You need to have a clear understanding of what your break-even point is.  Do you absolutely need to have £200 gross per month or would £150 be enough.

c)    Where exactly are you going to buy, and what is the furthest away from your home are you are prepared to buy?

There will be many more questions you want answered so that you are ready to agree to a deal quickly.  Make sure your list is as comprehensive as possible, and where possible give this list to the deal providers that are looking for property for you – this is usually available where a membership fee is required to have access to the properties.

If you’re much more of a jump in and do it person then why not consider partnering up with someone who is going to check the details for you.  This may slow the process down a little, but will avoid costly mistakes in the long run.

It’s great that you are prepared to take the next deal, but it never hurts to make sure that you have thought through your criteria before you start.  The more detail you have about the type of houses, cash-flow or equity that you require from a property purchase the stronger your portfolio will be.

What are the biggest issues that you face when thinking about buying that next property or negotiating your first lease option?

• I don’t understand the finance systems.
• Where am I going to get the deposit from?
• Should I take the deal if it’s less than 25% BMV?
• I live in an expensive area but I’m not confident of managing properties in another area.

There are so many ways of buying property these days that it can be overwhelming.  One system will feel like it’s in your comfort zone, but this isn’t necessarily the quickest or best way to accumulate the portfolio you really want.

Start with those comfortable purchases (probably the 2 and 3 bed houses or flats) and then move on to those which will support the income you want more quickly (multi-lets and even HMO’s).

Finance training is available so book yourself on a course that will show you how the systems work so that you can be satisfied you understand fully what is going on, the documentation needed and how you are going to use that system.

One of the biggest tips is that you don’t have to do everything yourself.  If you would be more confident working with someone who would help with the figures then buddy up with them.  You will probably be able to help them by finding great deals.  Share the workload, not only does this make it easier for you to build your portfolio, it makes it more fun too.

Whatever it is that’s stopping you or holding you back then check out the Just Do It mentors sections – get on the right training courses – or get someone to show you the way you like to learn so that you can take giant leaps forward.

You only have to do a little a day towards your goals to achieve more than you ever expected you would.

Happy investing
Yvonne

If you would like to discuss personal coaching/mentoring with Yvonne then as a Just Do It member you can get 20% off.  Phone Yvonne: 0845 094 6628 she can help you leap over your barriers.

Seriously Motivated Landlords

Many strategies these days involve purchasing properties from Motivated Sellers in order to buy property below the real market value.  The potential Landlord makes sure to check their reason for selling, that they are in danger of having their property repossessed and that they are able and willing to move quickly.  The seller knows exactly why they are selling, and that’s the reason they are motivated.

So, in order to be a Seriously Motivated Landlord you will need to know exactly why you are investing in property, why that specific type of property and why that strategy works at this particular time.  Motivation comes from knowing why you are doing something, and the clearer you are about why then the more motivated you will be.

We don’t often take time to consider our actions.  We know that adding property to our portfolios is going to increase our net worth overall, and we aim for the type of property that brings in a monthly income, but that doesn’t really answer the question of why we are investing.

What are your reasons? Make a list of them and put the list somewhere prominent, like on the fridge door.  Remind yourself constantly of the reasons behind your investments in order to stay motivated and focused.

Reasons don’t have to be positive. You can just as easily be motivated by what you don’t want as what you do want.  For example, you may not want to live in the poverty that your parents had to when they retired, or you may not want to be still paying off your mortgage when you retire.

Positive motivation works for most of us. You may just want to provide your family with a holiday every year, or buy the fast sports car.  You may want an alternative pension, financial or mortgage freedom, a University property for your children or just funding their education.

Do you want a particular style of living, financial security or the freedom to leave your job?

Whatever you want to achieve in 3, 5 or even 10 years’ time, make yourself a list of the benefits you will get as a result of making these investments.  Then make yourself a list of the consequences of not investing.  Which list provides your greatest motivation?

There is very little point in accumulating property for the sake of it.  It’s not going to make you happier, or give you the lifestyle you desire unless you plan your investments to match these reasons for investing.  Without understanding your reasons, you may find that it becomes a burden, a chore or even a frustration.  You won’t concentrate on filling the voids, or collecting the rents because you have lost the focus on why you are investing.

If you know WHY you are investing then it is 10 times easier to work out HOW and WHEN you are going to invest and that keeps you motivated.  Try it and see how you become a Seriously Motivated Landlord.

Kick-start your motivation yet again and propel yourself forward to greater achievements – come along to the Landlord Show and hear how to advance your portfolio through coaching.

(Yvonne Emery – March 2008)