This topic of a blog has come at a pivotal moment in Tungsten MG' growth. Yesterday I established with a new business partner a new special purchase vehicle (SPV) to enable us to purchase a commercial property in the North East of England. As I have well documented the business focus has been in Medway, Kent creating and managing HMO's. This continues to work well for us but it is very dependable on economic factors, tenants preference changes, legislations and many other things out of our control. So I have been researching ways to bring single let flats into the portfolio though vendor sales where I did a 90,000 leaflet drop, via auctions (this method brings risk) or to other areas.
We have built a relationship with a South East developer who invests up north and he has presented a deal to us. The team visited the area on a wet and windy Sunday and met with a potential builder and we were blown away by the space the offices gave, the development costs and the rental figures.
I wanted to pull together a list of points that I hope help you change the course of your sails for when you feel the time is right
F.E.A.R. = False Evidence Appearing Real. F.E.A.R. is an illusion. Something we fabricate in our own minds and pretend is real
Do not fear change
Do not fear change as change can be a positive step towards something new, altering past bad habits and creating an exciting future. Change can be hard but those who give up when things get tough will never succeed in life
“Successful people don’t fear failure but understand that it’s necessary to learn and grow from.” -Robert Kiyosaki
You have to accept that failure will happen to all of us but it is how you react that makes you stand out. For many people they see failure as something to be embarrassed of or seen as a weakness, but actually you should embrace failure and learn from your mistakes.
When you have decided to make a change there will also be a risk. This can be a financial risk if the business venture does not succeed, emotional risk as every challenge will bring challenges, excitements, exhausting moments and you will have weather these storms, you could face embarrassment and people questioning why?? You need to know why you are taking the leap and know that the net will catch you. The difference between us all is do you have the real passion in your gut to drive you through all the failures and to learn from these, press ahead and keep going so that you can achieve what you know you can, or do you stop at the first hurdle as its easier to quit then carry on?
If you rise up enough eveything else around you will rise
What is your WHY?
To make a change in all aspects of life you need to reflect on the reason why you are changing? For Tungsten MG, we made the change to add flats to our portfolio as we have been presented a great opportunity, a business partner came along at the right stage, we want to spread our risk with the type of property we own and rent, plus we want to develop ourselves and knowledge in the commercial to residential conversion arena. We have not gone into this with two feet. For a few months I have been researching this strategy, reading property magazines, looking at several Northern cities, calling estate agents, working on the figures. I have to be sure that I am confident and comfortable with the new venture from a personal and financial aspect.
I have done numerous research tasks, such as old fashion phone calls to builders and agents, tested the rental market by posing as a tenant to letting agents in this new area, looking on property rental portals like Spareroom. You need to be able to weigh up the risks and benefits and make an informed decision, as you will need to look back at the reason why you made the change in tough moments. If your reason why is not strong enough, you may ask yourself why you made the change?
