019: Property Investing Without A System

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Hi! It's David Lee. I'm going to ask you question. You're in business now. "Would you like to learn from your own mistakes, at your own cost and frustrations, or would you prefer to learn from somebody else that's been through that, that knows exactly what to expect and what's can and cannot even if you can't see yourself?"

Well, I think the answer's pretty obvious. I developed property cash flow systems in the United Kingdom from 2002 onwards with my colleague Rick Otton. I was the person out there putting the paperwork together with the legal people, speaking to agents, speaking to mortgage brokers, buyers, sellers, doing actual transactions from start to finish many times over.

And I learnt a lot along the way. I learnt about, not only how the system works, cause I was figuring it out as I was going along. But also the objections that came along. How dealing with people was so essential...and I came to this conclusion. So get ready for it.

You have to get to accept that you are guilty until proven innocent. So we can just say, "Oh no, I'm the most innocent, trustworthy person in the world", or we can accept that as a fact of life. That is how people are looking at you, especially when you're doing something that is different to the norm.

And so, therefore, we have to develop a structured approach to what we're doing. Because we have to get used to this answer to what we say, "No". No is the most common phrase that you'll hear, or "I'll go and think about it", "I'm not sure about that", "I'll go and speak to somebody" It all translates back to "no".

So, as I was going along I was figuring out, just like in any business that I'm involved with, how do we go get from start to finish understanding that there will be roadblocks, obstacles, things that get in the way? And we're not even aware of them as we encounter them.

We could be, for example, putting out some advertising, a flyer, some marketing, and we have not done any research. We haven't done any test, or feedback, or spoken to anybody what they think about it. And we can keep doing that forever and ever and it will never work cause we've never found the underlying cause why it's not working.

So we have to find out. We have to get feedback because it is a question if you can think that you are right, but I've always found that the market's always right, and we have to go with what the market says.

So here's an example. This was my very first creative property transaction in 2002 it was, 2002. I've got my signboard up there. Now, the fellow that you see here, had to do a lot of renovations to the property. He was so sceptical. He did not believe. He was typical of what I came to find out. He's checking you out. He's the most honest person in the world...hmmm, until you find out what goes on. But he looks at you like you're a criminal.

So, I had to do what I've talked about my property training or my business training. I offered him a "carrot". I offered him such a good proposal for this house that he was going to make money out of it. I called it the "Big Carrot".

Now he had to go and renovate this house, but I also understood that for him to achieve his objective, which was go into the house, fix it up, doing everything and to make a profit. He did that. He wanted to go and get a property to renovate cause he could not get access to a mortgage. He didn't have enough deposit.

So I was giving him the opportunity, but he didn't believe. And, I also understand when I went around and got solicitors on-board, whether it was from me or later on when they were going to represent my sellers, by default, in those days the legal people would never say, "I say, this is the best thing on earth. You're going to go ahead with it." Their fear will say, "Don't go and do it", cause he doesn't know anything about it.

What I did, because I understood the process, he did six weeks work on this place. He committed a lot of time and effort. He put £500 down upfront. But I knew when that came when the solicitor said, "I don't think you should go ahead with this transaction", he'd put too much life and body and soul into this property that he could not, and he you could smell the money! He couldn't, he just couldn't get over the fact that, "Where's the catch?", "Where's he going to rip me off?" But the "greed gland", as my colleague would say, was so great he went ahead with it. That's an example.

Here is another one I want to show you. He...from a Polish fellow, he was introduced by other Polish people about this house, but still his inclination, all his friends was saying, "It's a scam. It's a rip-off." So he was getting into this house for £0, but he was doing work up front. And his solicitor, who he eventually spent £1200 on, for him to keep saying, "No, don't do it. Don't do it. Don't do it." He gave in because he done so much work on the house and the pressure of the other people, the other Polish people in their house was too much for him. But I was anticipating that in these days.

And there he is at the end getting his mortgage. Do you understand I have to presuppose what's going on. I have to put myself in the mind of the other person. It's not about me.

And again as I developed what I was doing. Listen to the words of this Polish man. I did this deliberately out in the street. He was helping me getting customers. He understood the process. Think about automation in whatever business you're in, but listen to the words.

Polish Customer: "I know a few people. Personally I know about 3 people which they bought. Completed the purchase. And also, I know about 2 or 3 other people which I didn't know because they are different nationals...we are not meet together. I once meet with one of them in his work."

There you go. It's his words saying what's going on. People will believe somebody else rather than they'll believe you. There's the evidence. I showed the proof as I go along as I took references.

Now I'm starting to automate the system as I go along so it's happening for me. So before they even meet me that's why I'm looking to systemise. And the Instant Internet Identity system is to save you all this frustration so that you've got credibility that you don't have starting up.

(For only six personally selected property investors)

You will have somebody seeing what will happen most likely, cause people don't change. And that's an example of where many people, beginners, get frustrated because they just can't get over these hurdles that are put in front of them and the not aware of them.

Thanks very much. This is David Lee.