Taking responsibility for your actions

How to keep a positive mindset whilst being realistic

I don’t know what to do, Nothing stacks

If I could have a given a penny for every time I’ve had a desperate call from someone saying ‘I don’t know what to do, Nothing stacks’ I’d have given a whole lot of pennies. 

Whether you are buying a property, renting a property, doing an option on a property or flipping a property it does need to stack, and you do need to know what your profits are going to be before you embark on acquiring any property.  

We know that we also have to allow a margin for error, whether that be due to the market changing, the costs being higher or the time frame being longer.

We need to look at why most of the deals you look at don’t stack.  There will be a pattern that will emerge when you look at:

.  The area versa the strategy, 

.  who you are acquiring the property from 

.  what it is used for at the point of acquiring it.

So to begin with write down the sort of properties you are looking for.  Check you are clear on the strategies you have chosen.  

1. Your strategy of lead generation, 

2. how you acquire the asset 

3. how you make money from it.  

These 3 strategy areas need to be clear before you begin.  

If you have decided to find 5 bed + houses to run as HMO’s you need to ascertain firstly if there is article 4 in your area.  With Article 4 in the area you have to get a change of use if you are acquiring a family home with a class C3, in order to change it to class C4 usage which is for an HMO.

Although this is not about area and strategy, I want to remind all that the most important topic in property is area versas stragegy.  And it doesn’t matter how many times I say it, people still go and look for property before they have this sorted.  So much time is wasted whilst people deliberate over properties and attempt to make them stack without knowing if the area is conducive and phenomenal for the strategy they intend to use to make money from the them.  So for today I am hoping that you have done that as we discuss the stacking of a deal.

I sit and watch the glow from the fire, it’s Friday evening and my eyes are heavy