All Topics / The Treasure Chest / An important distinction…

Viewing 18 posts - 1 through 18 (of 18 total)
  • Profile photo of Steve McKnightSteve McKnight
    Keymaster
    @stevemcknight
    Join Date: 2001
    Post Count: 1,763

    Hi,

    I think it’s important for me to reveal an important property investing observation that I’ve come to hold critical to my success.

    You need to be passionate about property – rather than passionate about making money.

    If you’d like me to post more thoughts on this issue then have a go at working out what this means by posting your interpretation as a reply in your own words.

    Bye,

    Steve McKnight

    **********
    Remember that success comes from doing things differently.
    **********

    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

    Profile photo of KwaidanKwaidan
    Participant
    @kwaidan
    Join Date: 2003
    Post Count: 6

    I’d say it means;
    do what you love and do it to the best of your ability, then rewards will follow [:I]

    Profile photo of ADAD
    Participant
    @ad
    Join Date: 2002
    Post Count: 636

    There are probably a number of ways to lok at this statement but the one that hits me first is that property is all about people. The most important part of being a property investor is dealing with people. To be passionate about property means to me that you focus on the people and love the challenges presented. To be passionate about money is to ignore the people and or use them as neccessary. For me I find the less I worry about screwing every red cent out of a deal and enjoy the challenges, the better I do.

    For me property is a passion and money is a great side effect.

    Enjoy
    AD [:0)]

    “Carpe diem, quam minimum credula postero.”
    Lat., “Seize the day, put no trust in tomorrow.”
    -Horace, Odes

    Profile photo of ThunderThunder
    Member
    @thunder
    Join Date: 2003
    Post Count: 8

    Hi all,

    I think it is a balance of both, you have to love what you do to be good at it. The reward is of course financial, as matter of course we would all like to be financialy independent.

    I personally learned that good people, lead to good experiences in the market, thus you tend to want to become more involved, in tern passionate, and ultimately successful.

    Just a rookies 2 cents.

    Profile photo of The DIY Dog WashThe DIY Dog Wash
    Member
    @the-diy-dog-wash
    Join Date: 2003
    Post Count: 696

    Hi Steve

    I agree with AD that property investing is about people (learnt that from you[:)]), however I also think that to be a professional property investor is a life decision and you have to be in it for the long haul. Therefore looking at the big picture.

    You should be able to say, can I see myself doing this in XX years? And the answer should be yes.

    Other people are attracted to passionate people, they really know when you love what you do, it builds trust and rapport, two qualities I beleive are critical to helping others realise there property ownership dreams.

    Hmmm!

    Cheers
    Leigh K

    “If you will take on your self-doubt and laziness, you will find the door to your freedom.”
    -Robert Kiyosaki

    Profile photo of ChrisBedfordChrisBedford
    Participant
    @chrisbedford
    Join Date: 2002
    Post Count: 23

    quote:


    You need to be passionate about property – rather than passionate about making money.


    A couple of years ago I saw a news grab of a well known (read – loved & hated) Melbourne business figure leaving court after successfully defending himself against some business related charges.

    As he came down the front steps of the courthouse, a TV reporter launched at him with a cheap shot, asking “Mr.______, with this court case out of the way, I suppose now it’s back to making money?”

    Now my opinion of this man is neither here nor there, but his reply impressed me.

    “No, now it’s back to solving problems, the money is just a by-product”

    Chris B
    http://www.tradingsecrets.com.au

    Profile photo of OPMOPM
    Member
    @opm
    Join Date: 2003
    Post Count: 110

    I agree Steve. I’ve always been passionate about property and get a kick out of renovating properties which i find very satisfying.
    I also love architecture and often see run down properties that i’d like to give a spit and polish to.

    ~ better to die on your feet than to live on your knees ~

    Profile photo of YoungGunYoungGun
    Member
    @younggun
    Join Date: 2003
    Post Count: 18

    To me, money can be lost in so many ways, but it can be gained in more ways. I’ve flirted with the idea of making money in many vehicle strucures, but I believe you should choose something you love to do (as long as it’s a way to reach your goals) and be the best _____________ you can be!

    I love property and people, and it wasn’t till recently that I developed a skill of number crunching that rewards are following.

    As the American army put it “Be all you can be”

    Always set your goals further than you can reach
    – Then stretch that little bit further

    Profile photo of FWFW
    Member
    @fw
    Join Date: 2002
    Post Count: 478

    Well, I know I’m thoroughly passionate about what I do with wraps, and with property generally. My poor husband!
    Recently I had a RE agent approach me about a property he had up for sale, tenants wanted to buy it but couldn’t get finance. I looked at the numbers, talked to the tenants, it worked, I was in daily anticipation of a refinance happening, so I put in the offer – accepted
    2 days later the refinance was knocked back by the mortgage insurer – we should have lived in the suburb next door…. [xx(]
    To say I was in a panic was an understatement, there was no way I had 20% on the deal. I gained lots of great advice from my mentor, including the advice that sometimes you have to let a deal go.
    Problem was, I’d met the people, they’re great people, and I was determined they were going to get this house. Yes, I’d become passionate about the people, not the property.
    After many many MANY hours of pursuing possible ways to find the 20%, I’ve ended up with one investor putting in 10%, someone else giving me a short term loan until some FHOGs come through, and it should settle next week (if the bank can get their act together!!).
    The people are ecstatic, to put it mildly. I’ve never been called so many NICE names in my life.
    And that’s why I keep doing this – because of the people I can help. I love property too, and have plans to do other stuff for long term assets, but wrapping will have a place because of the kick I get out of seeing people buying a home when they thought they’d never be able to.
    Oh, and as a final note, on our 5th attempt we’ve found a bank willing to do the refinance, so now I can buy some more houses!!! hooray

    Keep smiling
    Felicity 8-)

    Profile photo of ADAD
    Participant
    @ad
    Join Date: 2002
    Post Count: 636

    Congratulations Felicity Hope you do dozens more.

    Enjoy
    AD [:0)]

    “Carpe diem, quam minimum credula postero.”
    Lat., “Seize the day, put no trust in tomorrow.”
    -Horace, Odes

    Profile photo of BarnyBarny
    Participant
    @barny
    Join Date: 2002
    Post Count: 11

    Felicity, that’s fantastic! Good on you.

    As a self-confessed Property Gumby (new in the game, don’t have a clue!) I’m still on a learning spree when it comes to investing. Since I’ve gotten started on this track, property has taken on a new slant for me. Often when driving past a house or an empty block, I’ll think about ways it would make a great investment.

    However, as time passes I see that people certainly are a big part of making your investments great, as Felicity has shown. The idea of helping someone fulfil the Aussie dream of owning a home inspires me to invest – profit is just icing on the cake.

    Cheers, all.

    Barny
    Property Gumby

    Profile photo of quasimodoquasimodo
    Member
    @quasimodo
    Join Date: 2002
    Post Count: 100

    The fact that Steve uses the word “passionate” really sums up one of the most important points about property for me.

    For example, as most of us know, profits can be made many, many ways however read up on making money in paper assets and it won’t be long befor you come across the standard advice of “Know your system. Stick to trading your system. Don’t get emotionally involved.” Do people make profits this way? Of course they do. Is this a philosophy I *personally* would choose to follow? Nope! But that’s just my personality!

    That Steve talks about being *passionate* about property, for me, illustrates what I love about REI in general. That it is not an academic system of “just following the rules”. It rewards people who think *outside* the box. Why do wrappers do well? Because banks exclude people who fit outside their rules. Why do renovators do well? Because they can see a beautiful house hidden underneath the exterior where no one else has. Why do any kind of property investors do well? Because they have looked for a problem that isn’t being solved, looked for a solution outside the norm and *provided* it.

    I’d say that this is the biggest challenge that we face, too. After all – we all want to know how to be more successful. But there’s only so much relevant advice you can get on how to be more creative (and thus different) with your deals than everyone else when your suggestions are coming from everyone else!

    Thankfully, some have more experience and knowledge of the more obscure methods that we can learn to add extra strings to our bow. In this respect Steve fits the bill as a mentor very nicely!

    Thanks Steve!

    Quasimodo

    ___________________________________________________________________________
    We are all but half formed images of our true potential.
    ___________________________________________________________________________

    Profile photo of The DIY Dog WashThe DIY Dog Wash
    Member
    @the-diy-dog-wash
    Join Date: 2003
    Post Count: 696

    Hi Steve

    I was just having another read of ths thread and wondered what it was that prompted you to raise this topic. Was it an observation that many questions revolve around the getting every little dollar discount or tax deduction etc.? Was it a test? And what was your take?

    Anyway thanks it was thought provoking.

    Cheers
    Leigh K [:D]

    “If you will take on your self-doubt and laziness, you will find the door to your freedom.”
    -Robert Kiyosaki

    Profile photo of Steve McKnightSteve McKnight
    Keymaster
    @stevemcknight
    Join Date: 2001
    Post Count: 1,763

    Hi,

    There was no secret agenda here, although I regard all the reponses to this post as precious.

    I just wanted people to understand that:

    1. Making money is incidential to property investing success.

    2. Property investing success is incidential to being passionate.

    3. Being passionate is incidential to doing something you love.

    Bye,

    Steve McKnight

    **********
    Remember that success comes from doing things differently.
    **********

    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

    Profile photo of SooshieSooshie
    Member
    @sooshie
    Join Date: 2002
    Post Count: 974

    Humanity is just wonderful!

    Loved all the postings and just thought I’d let all you precious contributors know. Beautiful reading.

    Happy Easter [:)]

    Cheers

    Sooshie [:)]

    <font color=purple><i>There are no problems, only solutions!</i></font id=purple>

    Profile photo of bkw319bkw319
    Participant
    @bkw319
    Join Date: 2003
    Post Count: 8

    Excuse me for being the cynic but I get more than a little bemused by suggestions that making money isnt a big factor in real estate investment.

    Come on now!

    It’s like all these people who say that money isnt one of the most important things about their job, but the boss doesnt grant that expected pay rise and all hell breaks loose. You see this every day.

    I would almost go as far to say that it is firstly about the money, and providing that you are a moral person, the benefits to others are the icing on the cake.

    If you are all about helping people then raise money for charity. Put all your efforts in to that.

    If, on the other hand, Steve is suggesting that you must have a genuine interest in property to make it work, then I agree with him. You MUST be passionate about what you do to be a success.

    Profile photo of ADAD
    Participant
    @ad
    Join Date: 2002
    Post Count: 636

    Well BKW319 I will have to disagree to some extent. You talk about raising money for charities if you want to help people. I personally give more than 10% of all my earnings to charitable organisations so in this way I also get to help people not only through renting or wrapping the property but also by sharing the profits. I cannot wait for the day when I can right out large cheques to such organisations and also give more of my time to help them in a practical way. My aim for property investing is to free me from the 9-5 and let me choose my time usage. Now the harsh reality is that I need to make money to do that. If I can make money and help people all the better.
    So yes making money is important but if it is your primary aim and an end in itself then I believe that you may achieve that goal but miss the point.
    For me it is about affording freedom that allows me to spend my energies in the wisest possible way and there is nothing wrong with a little philanthropy along the way.

    Enjoy
    AD [:0)]
    (Andrew)

    “”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
    Albert Einstein

    Profile photo of quasimodoquasimodo
    Member
    @quasimodo
    Join Date: 2002
    Post Count: 100

    Is it all about making money?

    Well, let’s ask a question? Why would you want the money? Do you really want pieces of plastic with pictures of dead people on them? Personally I don’t! What I *would* like is the power to influence my world in the ways that make it better for both myself and others to live in, and, co-incidentally money happens to help me do that. Money just happens to be able to let me spend more time giving to my family and community. It happens to give me more freedom to do fun stuff! It gives me the ability to choose the things I am *passionate* about in life. You could give the same money to someone who’s goal was just to accumulate money. They, too would reach their goal, but who do you think would have been given a better quality of life when they got there?

    As to the charity example, the Rockerfeller Foundation gives away millions each year to help unfortunate families. Whatever you think of Rockerfeller as a person, who would argue that he would have contributed a greater social good by giving a few hours to the local charity than by establishing his foundation that helps hundreds years after his death?

    Quasimodo

    PS 10 Point’s for being prepared to honestly express your questions, where the easiest answer would have been to go with an unthinking socially acceptable answer. Much appreciated!

    ___________________________________________________________________________
    Funny how action has a way of answering all of our fearful questions…
    ___________________________________________________________________________

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