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Buyer’s agent Glenn “Goose” McGrath believes that successful property investors should focus on their “why” over any particular strategy, as it is most likely to breed success.
During a recent recording of The Smart Property Investment Show, Mr McGrath explained the difference between tactics, strategies and principles.
Mr McGrath explained that tactics are the things that you do, strategy is the paradigm in which you were deploying those tactics, and principles are the overarching belief systems, structures and values that define the outside prism of that strategy.
“Tactics are one of those things and it really doesn’t matter if you’re talking about property or business, literally anything. Tactics should change and be malleable to the situation you are in at that current point in time. Tactics must change.
“This is why everything is rooted in principles and belief structures. If you can root everything in principles as opposed to tactics, you’re more malleable to finding success in whatever you’re in,” Mr McGrath explained.
Mr McGrath believes that in property, there’s all sorts of tactics that can be deployed from renovating for profit, property option or financing.
However, in the current market – which has had a “massive market shift” in terms of sentiment, activity, opportunity, choice, environment – investors need to really address the tactics that they’re following and wind them back.
“You’ve got to have your purpose, your values, your principles. I really want to position people to consider their psychology in a changing marketplace, and how they are rooting their strategies in principles, not tactics.
“Strategies are the middle piece, but if you can go back to principles, I think you’re going to be able to drive that forward,” Mr McGrath continued.
Mr McGrath explained personally that the strategy or the principle that he uses is “really simple” as he finds cash flow positive properties, or in this kind of environment, you could simply say “high-yielding properties”.
“In high-growth areas with value-added potential, the tactic variation is where you come into it, and that’s like, ‘What’s the value-added potential? And why? And when? What opportunity am I looking for?”
For example, “under market value” is a tactic that you can deploy in certain market conditions to achieve optimum results on the day you buy.
“However, in a rising market, that might not be the opportunity that you need or the tactic that you need to be chasing in order to see the greatest levels of success in your property investing journey. And I think it’s important to be malleable to that and then stick with your strategy in line with the principles,” Mr McGrath concluded.