If you’ve done a couple of small deals – maybe a development site that yielded a duplex or a splitter – and you’ve made some tidy profits, you’re probably starting to think about a bigger Property Development deal.
Anyone who’s done my Property Development Formula (PDF) course knows that success in this game is all about scaling up.
We start with a 5 year property action plan that maps out your deal trajectory.
Most often this will follow a pattern of small, medium and large deals as you step through the process.
For those of you who haven’t yet done a small deal, then yes, you should absolutely do a small deal for three reasons.
One:
It gets you practice.
Two:
It’s lower risk.
Three:
It’s easier to educate yourself on a smaller deal when you're learning how to become a property developer.
But once you’ve successfully completed a couple of small deals, it’s time to do a bigger version of that, then bigger again.
That’s the scaling message I teach our Property Development Formula students.
So you should STOP looking for small deals and start looking for larger ones.
If you’re looking to step up and progress your 5 year property action plan, then the temptation of doing another small deal can actually be a real road block.
Why?
Because you’re going to burn time, finances and effort - both emotional and physical effort – to complete that smaller deal. So all those resources will be tied up.
You don’t have the time to go searching for the bigger deal, and if a big deal comes along you don’t have the money because you’ve spent it on the smaller deal.
What you’ll find is you get trapped. You’ve swapped your day job for a property development job because you can’t step up.
It’s what’s known as opportunity cost: the loss of other, potentially superior alternatives when one alternative is chosen.
Here’s what you need to think about: if my money is sitting on the sidelines not doing anything, that’s not good. If my money’s sitting in a property development deal when it could be sitting in a better deal then that’s not good either.
So you have to have a long, hard look at where you’re at from a skills perspective, where you’re at from a financial perspective and ask “Is it time for me to step up to a bigger property development?”
If it is time to step up, then be brave and stick to your guns and look for the bigger deal.
If it’s time to step up and you don’t, then you kick the can down the road at least six to 12 months, if not more, and your 5 year plan is now a six year plan.
There are literally hundreds of people in our community who keep doing the same deal over and over. One into two; duplex, duplex, duplex. These smaller property developments may turn a profit, but it's unlikely to be the kind of profits you'll need to reach your financial goals or make money from property at the level you originally intended.
If you want to follow in my footsteps and secure financial freedom, you should do two or three of these smaller deals and then scale up.
I know what you’re thinking when you’re chasing another small deal, securing another familiar development site.
It’s easy, I’m comfortable, I know what I’m doing, I don’t have to stretch.
You got out of your comfort zone to stretch and learn and do the first deal and then you got comfortable again.
But what you didn’t recognise is that the growth happened by being uncomfortable. So you’ve got to stay uncomfortable.
My approach?
Be comfortable with the uncomfortable.
David Goggins is a great example of this mentality. He’s the toughest man you’ll ever come across.
He grew up in an abusive household, spent his high school years as one of only a small handful of black kids in a tiny Indiana town, he had to endure relentless bullying, and he barely managed to graduate. He struggled with obesity twice in his life and had other severe health issues.
But he turned all that around by hardening up.
Today, he’s the only man in history to complete elite training as a Navy SEAL, Army Ranger and Air Force Tactical Air Controller.
He’s completed Hell Week three times, served in Iraq and was the bodyguard for the Iraqi Prime Minister. He once held the Guinness World Record for most pull-ups in 24 hours and he’s run eight consecutive 100-mile races.
Why am I telling you about this guy? Because he is the KING of stepping up.
In his book “Can’t Hurt Me” he says most of us tap into only 40 per cent of our capabilities.
He understands most of us just need to harden up and step up!
The key message from Goggins is really simple.
If a bad thing happened to you, it happened, you can’t change it.
What you can change is what you do next.
What meaning you give it, what power you enable it to have, you’re the only one in control of that. If you can control that message then you can control the impact that bad thing has on you, which then means you can conquer anything.
My bad thing? I broke my back.
Do I curl up in a foetal position and go woe is me? Or do I figure out a way to do anything I want?
Now I’ve got a pain management system that allows me to soldier on.
So let me say it again:
Be comfortable with the uncomfortable.
It’s the only way you’ll be able to crack on with your 5 year plan and secure financial freedom.
Bring on the big deals: the development properties that can really show you the money!
Anyone who’s done my Property Development Formula (PDF) course knows that success in this game is all about scaling up.
We start with a 5 year property action plan that maps out your deal trajectory.
Most often this will follow a pattern of small, medium and large deals as you step through the process.
For those of you who haven’t yet done a small deal, then yes, you should absolutely do a small deal for three reasons.
One:
It gets you practice.
Two:
It’s lower risk.
Three:
It’s easier to educate yourself on a smaller deal when you're learning how to become a property developer.
But once you’ve successfully completed a couple of small deals, it’s time to do a bigger version of that, then bigger again.
That’s the scaling message I teach our Property Development Formula students.
So you should STOP looking for small deals and start looking for larger ones.
If you’re looking to step up and progress your 5 year property action plan, then the temptation of doing another small deal can actually be a real road block.
Why?
Because you’re going to burn time, finances and effort - both emotional and physical effort – to complete that smaller deal. So all those resources will be tied up.
You don’t have the time to go searching for the bigger deal, and if a big deal comes along you don’t have the money because you’ve spent it on the smaller deal.
What you’ll find is you get trapped. You’ve swapped your day job for a property development job because you can’t step up.
It’s what’s known as opportunity cost: the loss of other, potentially superior alternatives when one alternative is chosen.Here’s what you need to think about: if my money is sitting on the sidelines not doing anything, that’s not good. If my money’s sitting in a property development deal when it could be sitting in a better deal then that’s not good either.
So you have to have a long, hard look at where you’re at from a skills perspective, where you’re at from a financial perspective and ask “Is it time for me to step up to a bigger property development?”
If it is time to step up, then be brave and stick to your guns and look for the bigger deal.
If it’s time to step up and you don’t, then you kick the can down the road at least six to 12 months, if not more, and your 5 year plan is now a six year plan.
There are literally hundreds of people in our community who keep doing the same deal over and over. One into two; duplex, duplex, duplex. These smaller property developments may turn a profit, but it's unlikely to be the kind of profits you'll need to reach your financial goals or make money from property at the level you originally intended.
If you want to follow in my footsteps and secure financial freedom, you should do two or three of these smaller deals and then scale up.
I know what you’re thinking when you’re chasing another small deal, securing another familiar development site.
It’s easy, I’m comfortable, I know what I’m doing, I don’t have to stretch.
You got out of your comfort zone to stretch and learn and do the first deal and then you got comfortable again.
But what you didn’t recognise is that the growth happened by being uncomfortable. So you’ve got to stay uncomfortable.
My approach?
Be comfortable with the uncomfortable.
David Goggins is a great example of this mentality. He’s the toughest man you’ll ever come across.
He grew up in an abusive household, spent his high school years as one of only a small handful of black kids in a tiny Indiana town, he had to endure relentless bullying, and he barely managed to graduate. He struggled with obesity twice in his life and had other severe health issues.
But he turned all that around by hardening up.
Today, he’s the only man in history to complete elite training as a Navy SEAL, Army Ranger and Air Force Tactical Air Controller.
He’s completed Hell Week three times, served in Iraq and was the bodyguard for the Iraqi Prime Minister. He once held the Guinness World Record for most pull-ups in 24 hours and he’s run eight consecutive 100-mile races.Why am I telling you about this guy? Because he is the KING of stepping up.
In his book “Can’t Hurt Me” he says most of us tap into only 40 per cent of our capabilities.
He understands most of us just need to harden up and step up!
The key message from Goggins is really simple.
If a bad thing happened to you, it happened, you can’t change it.
What you can change is what you do next.
What meaning you give it, what power you enable it to have, you’re the only one in control of that. If you can control that message then you can control the impact that bad thing has on you, which then means you can conquer anything.
My bad thing? I broke my back.
Do I curl up in a foetal position and go woe is me? Or do I figure out a way to do anything I want?
Now I’ve got a pain management system that allows me to soldier on.
So let me say it again:
Be comfortable with the uncomfortable.
It’s the only way you’ll be able to crack on with your 5 year plan and secure financial freedom.
Bring on the big deals: the development properties that can really show you the money!
