WealthEsteem.org :: Psychology of the Deal

With damn hard WORK (not JOB) how to go from 0 to 5 investment properties.

Assumptions

1. it wont happen fast unless you’re lucky – in which case you didn’t need to follow any plan.
2. You will work harder than anybody with a job to get the same initial results.
3. I’d guess it will take about 7-14 years
4. Getting and keeping a job would be easier (but may leave you broke). How many stories have you read that said “bought my first Investment Property then waited X years before I thought of doing it again because work got in the way”
5. We want this to be legal

So here is the list:

1. Start earning cash now. That probably means learning how to sell something, anything, anywhere.
   1. self-employment sections of the papers
   2. market stalls
   3. Walk around industrial areas with your eyes open. Has someone got an overstock problem? Ask for a sample and a price. Hit the road.
   4. Ask yourself how can I get something to sell on consignment?
2. Start small but scale quickly. Turn $5 into $10. Then $20 then $40 then $80 etc.
3. Learn to fix problems. Look for people with a problem and find a way to make that problem go away. That lets you set your own price that is not tied to time or personal effort.
4. Focus on cashflow. In the early days do not build a system to sell it. How much am I making per week/month (forget year). e.g. Some retailers break even on trading but make money by selling the business, others make money from day 1 — guess who normally wins in the long run?
5. Put 5%-20% (say 10%) away for wealth creation. That way you’ll know when you have enough to buy an accumulating asset. That % may be of gross sales or net profit whatever! But put it away out of every deal/week/invoice.
6. Network. Now. Go out and meet people. Not just your friends. Talk to business people, sales-reps, seminar-junkies, hairdressers, baristas and bar-tenders. Find a 2 sentence intro and ask them questions about themselves. If you can afford internet access you can afford to do a google search on how to network.
7. Optional. Find a deal that is too good to pass up and the money will appear. This is a fact
8. Buy an asset (with your own money) that is 80% right as soon as you see it. You won’t find anything perfect and the time you waste getting 95% perfect will cost you 2 deals. The learning experience is worth the mistakes. Remember you created the deposit and you can do it again if you make a mistake.
9. Did you know that if you had a 34% deposit the money is relatively easy to find?
10. Once you have an investment system that works for you, leverage it with investors. Realise almost no investor will back your first deal.