What CAN you do and what CAN’T you do? In property, in life, in business, in work.
Good morning, everybody. Today I want to talk about what can you do and what can’t you do in property and in business and in life and basically in everything and this all started out as what you can do and what can’t you do in property, but then I realized that hey this is stuff that is in life and in everything else that we do on a daily basis and how can we profit from identifying what we can do, and how can we profit from identifying what we can’t do profit from that because I think we’re all the same aren’t we? We all have fears and worries about any kind of investing and when that be whether we’re investing in life in business in property or whatever.
We all have issues with jumping over that first step. But also we can all see potential we can all see opportunities. But if we can all see opportunities then why don’t we take the all those opportunities? So that got me thinking this morning while I’m sat in the car park outside the gym waiting for it to open.
I want to show you a few of my own thoughts on how you might profit from the things that you can and cannot do and I want to help you change the way you see opportunities and think about opportunities and the potential and the positives always in everything you think about because it’s just a calculation. To turn it from an emotion into a calculation is the key. So I want to give you my thoughts on how I do it and how I think about it, and that’s not to say that I don’t think about the negatives. I absolutely do but I just I see them differently to some so I wanted to share that with you quite spontaneously because all of these is a Formula it’s like a calculation or a process if you like of a way of thinking and if you can get that into a habit where you can spot the positives and you can calculate all of the positives and all of the opportunities and potentials and also calculate the negatives.
You’ll be able to see the negatives for exactly what it is rather than just an emotion which overtakes all of the positives and almost ruins the opportunities because you’re worried and focused all on those negative downsides risks problems that could or could not happen. So I’ve written a ton of notes here and I’m just going to go through the best as best I can because this was quite a spontaneous live really, but wouldn’t we all love to not worry or would we all love to worry but understand what we’re worrying about and be able to calculate that into a sum and into our formula.
So the first of all I want you to be able to use the negative. So we’re going to go through that right now and I’m going to relate this to property mainly because worrying is actually a good thing as long as it’s under your control. So anyway property. I want you to remember that quote. Focus on what you can control rather than what you can’t control.
Well I think that’s bollocks because I think that you should put your effort into what you can control and calculate what you cannot control because of course if we put a load of effort into things that we cannot control then we’re going to not be putting as much effort as we could do into the things that we can control. We as human beings and I do to everybody does we spend so much time thinking about things that could go wrong and worrying about those we tend to just lose all track of what could go right and what profits we might be able to make so I’m very much trying to change my mindset and thinking about all the things that could go right and then calculate the things that could go wrong.
So the way I want to do this with property is first of all, I want to work out and calculate the potential in that opportunity, right and this is the same with all life.
It’s the same in business. It’s the same in any decision you make; you calculate the potential and you work out the potential and then once you’ve got that potential like for example the job done value of this opportunity. What is that in a number? This is same in business. It’s the same in life.
Your goal is to get to that job done value the end goal and if you calculate that into a number, then you can work out the future return to you and the benefit to you again in property. It’s the same thing. It’s working out. Once you’ve done a refurbishment; how much is it going to be worth? How much profit are you going to make when you sell it? How much profit you’re going to make each month when you rent it out? And then also you can calculate all of the profits associated and I don’t just mean in money, I mean profit in your life.
If you’re going to take advantage and of an opportunity then what is the benefit to your life as well as your bank balance and I think that’s really important to understand now once you know that number you can work out what it is exactly you need to do to get to that goal. As long as you’ve turned that into a number or a set goal. Now, you’re very if you spotted an opportunity.
You’ve seen that there is potential in this opportunity. You know that everybody sees those potentials and those opportunities. How do we get it to the next stage? So you’ve seen the potential you seen the opportunity and now you want to go for it, but there are two halves of you here one half of you is going to see that opportunity and not do anything about it because you think about the fear and the worry and that overtakes that takes over and see you worried about what might happen rather than so.
If it doesn’t happen, what if these problems don’t happen? Hey, that’s the that’s the goal. Right? So now you’ve set that goal of this is my opportunity. This is where I want to get it to this is the benefit of the profit to me. Now, you need to work out what you need to do to get to that goal. And this is where we start getting into the fun Parts because that might be that might be calculating your refurbishment on a property. It might be working out what you need to spend in a business deal or a business opportunity.
To get to that goal what profits you need to make what is the potential and how can you get to the potential? That’s the idea and it’s the same for yourself as well. What do you need to do? If you know you’ve got potential in yourself, whether that be as a property investor as a business person as a father as a husband, if you know, you’ve got potential in yourself to then you can work out what you need to do to get there because we all miss big
Unity’s and potential because our energy and our focus goes into what might be or what might go wrong what the downside is and our worry and our fear just takes over in all of that and I bet we could all relate to that a bit all of us have seen opportunities and see potentials and not taking it up not taking that opportunity because you fear it and you fear what might go wrong. So, how can we take?
Take that fear and turn it into something you can use and something positive. Well now that I’ve been doing this for a number of years now, but I the way I see it now is I look at an opportunity and I get really excited about an opportunity. I can see the profits. I can see the benefit to my life. I can see the benefit to my family and to my staff and to everybody whatever that opportunity is and I see that and I’m consumed by that optimism and ambition and I bet you’re all the same.
And then I start thinking about right what can go wrong. Now. I’m actually in a weird way. I’m trying to focus on the bad stuff a bit more because sometimes I’m a little bit blinded by the opportunity. So I don’t know if you’re the same as that as an if you can relate to that. But yeah, I’m now trying to calculate my fear and my challenges and the down side a bit more so for you to see an opportunity, you know, the opportunities potential and now I want you to calculate the fear, calculate the risk and the downside what might go wrong and I want you to write these things down. If you see a property and you work out this is going to be a great property investment. I’ve seen the potential here, or maybe it’s an investment for your own life or it’s a work opportunity or a business opportunity write down what could go wrong?
And write it a list do on your phone, your pad or whatever, write in the list and then next to those lists of things right the chances of that actually happening and use the property example, I used last night in my live video.
What are the chances of your property falling down; actually falling down? So it doesn’t exist. That’s almost impossible. What are the chances of your tenant not paying the rent for a year. It’s very low if you look at the rent arrears in the entire country, then we’re probably only looking at 1% or 2% of all tenants. Maybe it’s more than that. I don’t know the stat. I’d be interested if someone doesn’t know that stat, but what I’m saying is right next to the risk what the chances are of that risk actually happening. So if the building falls down, you’ve probably got buildings Insurance you’re covered if the roof caves in you’ve probably got buildings insurance covered.
If the tenant doesn’t pay rent for a year. Hopefully you’ve got a letting agent for a start they can help you out of that pickle. But also you probably got insurance a landlord insurance or a grant guarantee or any sort of protection insurance. That would have been able to get that rent back. So you’re covered. So we’ve calculated that risk and we put it into a number we’ve worked out what the chances are of that actually happening. And now we’ve got risk, yes, but we’ve turned it into that number.
Numbers aren’t that scary a number isn’t that scary the risk and the emotion attached to the fear attached to the risk to the emotion and fear attached to the risk that scary. So we need to stop being scared. Don’t we? That’s the goal. Imagine how awesome you would feel if you had an opportunity and as a major opportunity in your life and you could manage your own fear now, that would be kind of cool right?
I’d love that if I could see this property opportunity or a business opportunity or an opportunity in life for my children, for my wife, for my family and I could see an opportunity and I could not be scared of it. I could analyze it I could calculate it and I could decide completely unemotionally whether I take that opportunity or whether I don’t it’s the same in property. Do you know what when I first started investing in property? I was so scared that everything was going to go horribly wrong until I did these things and I know I haven’t really given you any kind of actual strategy or processes here. I’m kind of giving you an idea and my thoughts on my idea and I will go into this in a bit more detail another time. But really what I’m trying to say is don’t be scared of your fear in any opportunity; have a look at the opportunity. First of all work out the big stuff, the cool stuff, work out what it is you can actually achieve in this opportunity and get excited about it.
I literally I get blinded by my own excitement sometimes and now I’m able to calculate the risks now. I’m still super excited about the actual opportunity, the profits, the benefits to my life, to my business, to my family. I’m still going to get so excited about that. But now I also calculate completely unemotionally, completely methodically.
What is the benefit and what is the risk to my potential here?
And I try and put numbers next to everything – I stick it in a spreadsheet and look it’s made up but I find that once I turn it all into numbers, I can see it and I can calculate it and it’s not scary anymore because look where we all worry. We are human beings and we worry about stuff especially when there’s something that could achieve some sort of success or benefit to us. We all worry about that shit, right?
Right we all do, so I’m trying to show you how to calculate your worry and turn it into a benefit and turn it into a calculation that will enable you in property to make the right offer. It will enable you to in life make the right decisions and in business to make to do the right deals to take the right to take advantage of the right opportunities and also in work to make the right decisions to be more effective in your job.
And that’s what this is all about. So, hey, look if you’re ever unsure on what to do. If you see an opportunity remember, we all see opportunities the difference between successful and unsuccessful is taking that opportunity and that is decided by how we govern and manage our own fear of the opportunity. We’re all scared of opportunities, but if you’re ever unsure of what to do and how to calculate your fear
What I would say to you is just write it down all of your fears on that opportunity bit by bit and get into detail. If you want like I’ve just used that example of property investing what happens if the roof Falls in how what the chances of that roof falling down. How much is it going to cost if the roof fell down every 50 years. It’s going to cost you £10,000 if it does – there’s your calculation, you know, you’ve got to save out of your rent profit £10,000 over 50 years. I can’t work out what it is it is.
It’s small numbers. Protect yourself against your boiler from blowing up every 10 years. Look we know that a boiler should be replaced after about 10 years. So that’s going to cost you £1500 you need to make sure you’re saving up £1,500 over 10 years. So now that fear which everybody has become a number and numbers are not scary.
So what is my quote? Put energy into the things you can control and calculate the things you can’t control.