Despite the huge contrarian investing opportunities since the crash and recession of 2007 and beyond, despite far higher cashflow and yields, despite far lower prices and bigger discounts, despite much less competition and low cost of finance…
Property investors are facing brand-new challenges that are holding many previous professionals back from genuine wealth and multiple streams of income.
Here are the very real problems and opportunist contrarian solutions:
Problem 1: Super-fast changing market & regulations: because the financial climate is morphing so fast, mortgage rates and products are being scrapped or updated weekly, criteria for lending goal posts keep moving and regulations seem to constantly change, most middle-of-the-road investors just can’t keep up
Solution: Embrace the change and commit to being at the front of innovation. Look for the opportunities in change, and look to get in early [not first, but near the front]. Use the change to provide a service that most people need [in lieu of the change], and serve more people while they are struggling to adapt to the change.
Tip: With change comes opportunity and with fast change comes faster opportunity. It’s survival of the fittest right now, and for those without the stomach for it, it’s hard. But for those with courage who make decisions and take action, the money that the helpless masses are losing is up for grabs, and there’s more of it than ever.
Problem 2: Overwhelm & confusion: No sooner does this contrarian investing opportunity become real, it becomes confusing and overwhelming.
There’s just so much information out there. So much free yet conflicting ‘expertise’ on forums, so many downloaded ebooks unread, so many social media sites and 87 ways we communicate. Skype me, email me, text me, call me, BBM me, Facebook me, Tweet me.
How do you cut through all the noise and the information overload, and work out what is valuable and what is throw-away? How do you work out how much of that information is relevant to you and your life
Solution: Know that decision and action are the two antidotes to overwhelm and confusion. Decide forward. Fail forward fast. Educate yourself, make the decision and then act. Do. Go. Now.
Reduce the amount of information you’re plugging into, but increase the quality of that information. Don’t look to everyone and everything for clarity, look at those who are getting the results you want and model them consistently.
Tip: Get out of the void of indecision; any decision is better than no decision. If it’s wrong you can make it right, and if it’s right it can save your life.
Problem 3: Lack of F.O.C.U.S: the ‘Magpie syndrome;’ chasing all that shines because it could be the next big thing that will save someone’s life, often damages more than it serves.
Add the information overload – overwhelm and it’s no wonder why investors don’t get the results they desire
Solution: F.ollow O.ne C.ourse. U.ntil S.uccessful. Then systemise that income stream before setting up the next one and repeating the process.
Tip: The benefit of the Progressive community, is that you get to observe the patterns of behaviour, both successful and not.
Problem 4: Finance: yes, every smart investor like you knows that there is an unparalleled contrarian opportunity to buy assets cheap, get higher cashflow and returns, and have less competition in the process.
The reality is that it is harder to get conventional finance, banks are tightening their criteria, loopholes are being plugged, and ‘creativity’, is not being rewarded by the institutions. Relying on ‘conventional,’ high street, ‘sausage machine’ finance is not the answer.
Solution: Joint Ventures. Collaboration. Peer to peer lending. Creating partnerships with lenders. Getting more ‘personal’ with finance. Repackaging and restructuring deals to look good to ‘private’ investors. Going beyond the banks straight to professional investors, Angels and V.C’s [Venture Capitalists].
Tip: Contrarian, by definition, means the opposite of the masses. It means most people don’t know this (Your unfair advantage)
Problem 4: Over-reliance on ‘similar’ income streams: when one income stream is relied upon, or more than one income stream but from the same/similar asset types, you’re exposed to risk. Because of the fast changing economic climate, the rug can be pulled from under one and only one strategy
This was a common story when the crash first became a reality in 2007, and it hurt many experienced investors. You may remember Mortgage Express’ one day remortgage ‘product.’
Solution: Create robust, protected, multiple streams of income, in the 4 different income ‘quarters.’
Tip: If change isn’t embraced super fast, that income stream can disappear.
(Remember that You can be, do and have anything you want. Never let the others and the voices tell you otherwise. I believe in you…)
Invest for Freedom, Choice and Profit
Rob Moore