Dr. Simon Ramo, a legendary American engineer wrote a book in 1970 about, of all things, tennis, titled Extraordinary Tennis for the Ordinary Player.
The engineer in him noticed that the game of tennis involves two games – one is played at the professional level and the other is played at the weekend warrior level.
Now, that’s not particularly brilliant, but the conclusion he reached from his observation is.
After extensive analysis, Ramo concluded that professional tennis players win points while amateur players lose points.
In other words, for professionals, most points are won by the pro hitting a spectacular winning shot that is just out of reach of their opponent (a “winner’s game”), while amateurs typically lose points by making an unforced error (a “loser’s game”).
Writing in a famous 1975 Financial Analysts Journal article, noted investment analyst Charles Ellis extended Ramo’s tennis concept to the investment business.
Ellis said investing had flipped from being a winner’s game to a loser’s game.
He meant that to succeed at investing you need to focus on making fewer avoidable errors as opposed to making spectacular winning investments.
Now making fewer avoidable errors is a worthy goal at any time, but it is critical in today’s changing markets.
What has all this got to do with property?
The best way to explain this is that during property booms it’s easy to look smart.
Rising values cover up many mistakes.
But today the property markets around Australia are very fragmented with property values falling in some locations, flat in others and rising in yet other locations, but overall it is unlikely our markets will exhibit the same levels of growth in the next few years as they did over the last few years.
That reminds me of 2 of Warren Buffet’s famous sayings:
- “A rising tide lifts all ships” and…
- “When the tide is out you can see who is swimming naked.”
Yet some investors are doing very well
While some investors are floundering, at the same time other, more strategic investors, those who understand the importance of correct timing, proper asset selection and smart financing using financial buffers, are heading towards financial independence through smart property investing.
These successful investors are not trying to get rich quick.
Instead they focus on making fewer avoidable errors by using proven trusted property investment systems.
On the other hand at the same stage of the cycle other, more strategic, investors, those who understand the importance of correct timing, proper asset selection and smart financing using financial buffers to see them through the lean years, are still heading towards financial independence through smart property investing.
The 4 types of knowledge you need to seize control of your financial future:
To make the most of our current schizophrenic economic and property markets strategic property investors will need:
- Unbiased economic insights
- Education based on proven property investing principles and strategies
- Guidance from expert investors who have been there, done that
- Insider information so you can spot market trends that are “hidden” from the average investor
That is why it is critical to learn from experienced and successful property investors, from someone who has already achieved what you want to achieve and has retained their wealth in the long term.
I also see it as a great time to not just wait for the market to do its thing, but to actively “manufacture growth” by getting involved in property renovations and development and then holding on to your properties in the long term and enjoying the capital growth.
And that’s precisely the topics we’ll be teaching at my annual Property Renovations and Development workshop on October 20th and 21st.
NOW I’M NOT SAYING I HAVE ALL THE ANSWERS
In fact I don’t even know all the questions, but I have gathered the best faculty of experts I could – yes people who pass my definition of experts above and I’ve put them all in the same room for 2 days to teach you advanced property strategies at my 2 day training in October – my annual Property Renovations & Development Workshop.
Get all the details and reserve one of the early bird spots because its only a few weeks away.
By the way – we’ve never offered this annual seminar at a cheaper investment.
It’s likely that it will cost you a lot, lot less that you expect even though it’s a training – NOT a sales event.
WHEN YOU ATTEND, YOU WILL LEARN:
- What is really going on in the world economy and what this means to you as a property investor.
- How to select the right type of properties to renovate for substantial profits.
- How I makes significant returns on my money by developing residential property including an extended session on how you could become a property developer. You will receive my A- Z Manual of Property Development including Metropole’s internal checklists and worksheets. This manual is not available anywhere else.
- How to find property that won’t tie you down with negative cash flow.
- What exactly drives property prices — why, over the next few years, some properties will perform so much better than others and how to find these properties.
- How to buy real estate well below its replacement value.
- How to select the suburbs that are likely to provide strong capital growth over the next few years (many suburbs will not).
- How to use the lessons from previous property cycles to take advantage of the opportunities that lie ahead. Most investors will miss out!
- The best way to buy property including at auction and private sale and what research you need to do before you buy.
- The negotiation tricks used by the pros to ensure they get a great deal every time.
- You’ll love it when we show you how to beat the banks and get better finance. You will learn how to get the banks to treat you like a sophisticated investor.
- The tax strategies of the wealthy will be presented by Australia’s top property accountant. Almost everybody wants to know about tax and how to minimise it legally. Most people earn money, pay tax and live off what is left. When we show you how to invest and live off your income before tax, you could have twice as much money at your disposal to invest.
- Bullet proof tax structures and asset protection strategies from one of the best solicitors in Australia as well as a discussion about joint ventures and how these could work for property development.
- How to conduct yourself at auctions and how to use an auction’s unique dynamics to your advantage.
- The software tools the professionals use to analyse their deals, manage their portfolios and obtain finance.
- How to direct and lead your valuer to get the best valuation.
If you really want to develop financial independence I suggest you invest 2 powerful days and learn renovation and development strategies that experienced property experts are using around Australia to “manufacture” capital growth and generate strong rental returns, so that they can win in today’s challenging property markets.
Take your property investing to a whole new level by joining me in October at my Property Renovations & Development Workshop.
Maybe now it’s time you stepped up and played in the big league by getting started in property renovations or development.
This is the course where other “experts” who are now teaching got their education. Click here find out more and reserve your place.
Subscribe & don’t miss a single episode of Michael Yardney’s podcast
Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.
Need help listening to Michael Yardney’s podcast from your phone or tablet?
We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.
Prefer to subscribe via email?
Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.