PB-189 Succeed with Commercial Property - Property Inc

[ Podcast Transcription ]

I’m Peter von McNess, and he is Chris Lang, and welcome to another of these regular property briefings.

And a warm welcome to you, Chris. Well, it’s great to be here with you. Over the past few years, we’ve talked about some of the key skills you need as an investor, but today I thought we might step back for a moment, and just consider some of the fundamentals required. To succeed with commercial property.

Well, you see, when most commercial property investors begin talking about success, you generally find it revolves around the performance of their portfolio. And look, you can understand that. And that’s why I created the property matrix to quickly combine all of your investment objectives and buying criteria to ensure that you achieve those objectives.

And the idea was to rate how well each property met the various buying criteria with the overall yardstick of a 70 percent plus result. as being the outcome. Now over time that matrix was developed into what has now become the high return filter app which you can download and use on your iPad or your iPhone and this allows you to quickly assess each potential opportunity to decide whether or not you should Put it on your shortlist for a more detailed analysis.

While that’s obviously important, I was hoping to delve a little deeper. Well, you’re right. That is only one aspect of success in an investor’s life. And I try to encourage clients to consider the bigger picture, and thereby ensure that they build a solid foundation for their investment decisions. You see, throughout life, you are continually undertaking certain actions, which…

In turn, we’ll create varying results, and depending on how those results pan out, they will determine how you feel, and then, they will affect your potential to take similar actions the next time around. So, if a particular action delivers you a poor result, that will adversely impact how you feel, which in turn, will negatively affect your potential response for the next time you face a similar situation.

Now, as this cycle continues, you can very soon end up in what’s called a rut as an investor, because you begin to think, All of this is your fault and the things will never change and work out well for you. I mean, let’s face it, we all have good days and bad days in whatever we do, but once you start to seriously doubt your capabilities, you’re unlikely to have ongoing success as a commercial property investor.

So the key question then is, where and how do you break into this downward cycle should you ever start having it happen in your life? Now, on the face of it. Many would tell you to redouble your efforts and boost the level of action being taken. Now, granted, that may provide some initial improvement in your results, but then you need to make sure it’s sustainable.

And that’ll be determined by how you continue to feel about things going forward. Therefore, you need to Focus your needs and activities on maintaining a positive attitude. And you do that by breaking into the cycle immediately after results, with a simple technique called Results in Advance. And that’s where you create a compelling description of where you will be in five to ten years from now, in every area of your life, and not merely limited.

To your commercial property investment goals. Now as you can appreciate, this will involve every segment of your life. Your income, your career. investment, family, social, personal, even spiritual. Otherwise you will quickly end up with a lopsided view of your success, too dependent probably on the first three items, and neglecting all of the others.

That’s great, and I like the way you break into the normal cycle of events by introducing results in advance into the equation. So, how might a well rounded goal be framed? Well, by way of example, a well rounded goal might look something like this. By December 2026, with my newly acquired knowledge, I now own four to six stand alone commercial properties worth 8 million.

which generate a net positive income. Plus, I’m able to work just two days a week and enjoy more time with my family and friends. Now, if you just dissect that, you’ll quickly observe that this manages to incorporate six of the seven segments of your life into one goal, which not only covers what you want to achieve, But also carefully articulates why you want to achieve it.

Now from there, you break this down into a three year goal, and then what you need to do is set out what you would like to achieve in the next 12 months in order to be on track to fulfill your main goal. And then you set quarterly, monthly, and weekly goals from there. And, is that it? Well, no, because if you stop at three yearly or twelve monthly goals, it’s a bit like making a New Year’s resolution, which you don’t think about for another twelve months as to whether you, you’ve achieved it, and that in turn is what’s called a lag indicator.

Whereas, if you’re monitoring your progress on a weekly basis, You can clearly monitor how you’re going and make immediate adjustments, which then makes that become a lead indicator. And if you know you’re on track every week, and then every month, and every quarter, you then know with confidence that you’re going to be meeting your long term goal.

And the important thing is, by methodically achieving these incremental tasks and goals, which All build towards your main goal that provides you with the confidence and the comfort of knowing that you are on track, irrespective of any short term setbacks. Therefore, by having this clear vision of your results in advance, you are able to maintain continually a positive attitude no matter what occurs along the way.

So why is it you are so passionate about the simple goal setting strategy? Well, I guess it goes back to when I had polio as a kid and being told that I’d be lucky to walk again, to then go on and compete in sport at state level. And as someone who only passed year 10 English at school and then went on to study economics at Monash and write seven books on commercial property.

And by achieving that, I can definitely vouch for how well the strategy works. And it’s what’s kept me motivated all through the lockdowns during 2020. And therefore, I encourage my clients to at least be prepared to give it a try in order to create your own solid foundation and underpin your future success.

Well, what you’ve covered today, particularly by including the personal touch at the end, will no doubt resonate with many of our listeners. Well, a wise man once told me, happiness is being content with what you have. Well, in pursuit of what you want. And as soon as you have that clearly defined, everything else you do will suddenly become so much easier.

That certainly makes a lot of sense. So, thank you, Chris. Well, it was my pleasure, and I do hope everyone found it helpful.