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By Greg Hankinson

This is why the rich look for problems

Do you like having problems?

Most of us don't.

But I've noticed that there are two types of problems:-

  1. The problems you think you have
  2. The problems you don't think you have;

Now stick with me and you'll understand what I'm on about.

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You'll find that most people are prepared to pay to get rid of their problems - they don't know any other alternative.

And spending money is the way they solve the problems in their lives is one of the reasons the average Australian remains poor.

On the other hand, the rich know how to make money

They realise they can make money if they:

  1. Find a problem or make people realise that they have a problem and...
  2. Provide a solution to that problem (remember most people will pay for a solution to their problems.)

Having worked with many business people, investors and entrepreneurs I have come to realise that the rich seem to spend a lot of time looking for problems.

They get excited when they find a problem because they know that if they can also find the solution, that's where the money is.

On the other hand, most Australians seem to try their hardest to avoid problems.

They get frustrated and annoyed when they occur.

I have come to a simple conclusion...

Rich people look for problems, poor people look for work.

Let me explain how this works for property investors...

If you think about it many properties are in poor condition and need some work done to them.

In fact, their inferior presentation negatively affects the value of what could otherwise be a good asset.

In other words, this situation represents a problem.

Let's look at an example of a property we bought a couple of years ago for a client of Metropole.

It was an older villa unit in the inner south-eastern suburb of Glenhuntly in Melbourne.

The elderly owner had let it run down and the internal condition was so poor that it needed a major renovation to make it liveable or rentable.

Our client, an investor bought it for $700,000 and spent $60,000 on a complete renovation, and after 4 months, that property was worth well over $820,000.

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But here's something I find interesting...

This transaction involved two categories of people;

  1. The investor, and...
  2. The tradesperson who supplied all the work and materials for $60,000

Let's have a closer look:

  1. The investor did no physical work, spent little time and effort, and made around $60,000
  2. The tradesperson who sourced all the material and did all the physical work; after paying for the cost of material, subcontractors etc. probably only made $10,000.

This is another example of...

The difference in the way the rich and the poor think.

The investor was looking for a problem because they understood that solving problems creates money.

On the other hand, the tradesperson was looking for work, because the only way they know how to make money is to work harder.

So next time when someone asks you "What is your problem?" don't get offended.

Just remember it may be an opportunity for you to make money.

About Greg Hankinson Greg and his team have successfully built and renovated in excess of 500 homes throughout Melbourne and are showing no signs of slowing down anytime soon. Being a Gold member of the Housing Industry Association and National Kitchen and Bathrooms Association, Greg’s focus is on Continued Professional Development, not only for himself, but his team of industry experts.
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