The Perfect Disaster

Why trying to be perfect is a great way to fail – and how to avoid it.

The best is the enemy of success! What I mean by this is so many of us are so focused on the best that we take very little action towards our success. We are focused on the best place to eat, the best time to work out, the best way to lose weight, or the best way to make some extra money. We are focused so much on the best that we think too much about what we should or could be doing.

Focusing on a process toward success will prevent failure and accelerate your results. Take Travis in our office for example. He loves the gym and wants to get bigger and stronger. He can focus on the perfect diet, the best supplements, the best workouts, and the best technique. Or, he can eat healthy and get under the bar. The reps give him experience and strength. The results provide the momentum, and he finds himself spending more time in the gym and focusing more on diet and supplements. Now he has trouble fitting into his shirts. It all started with reps.

Dating is another good example. Typically, we need to kiss a few frogs to find our prince or princess. It does not come easy, but as we work through it, we start to learn what a good match looks like. We should start to get more confidence and our decisions become faster and better. Eventually, we hope, we find someone we are compatible with and live happily ever after.

Business or investing is no different. Obviously, we want to strive for quality, but quality will come with some thought-out quantity. Takes sales for example. If we just pick up the phone and start making calls, we will get better and better on the phone and will start closing more deals. The practice on the phone will produce better results than spending time finding the best phone script or the best people to call. With investing, we start taking steps to our goals. Maybe that is interviewing agents or sending out mail to motivated sellers. As we see results, we can adjust and improve. The fact that we are taking action, organically gets us closer to perfection.

So how do we avoid the perfection trap?

Goals are so incredibly powerful. A goal should be a tremendous help, but it can also hurt you. For new investors I love the idea of setting action-oriented goals. What I mean by this is to not focus on results, at least to start, and only focus on the small actions that should lead to results. As you hit your goals, you gain confidence and momentum. Let me give you an example. If you want to make $30,000 a month, you might start with how many deals you need to do to hit that goal. If you are a fix and flipper, it might be one deal. Then focus on how many offers you need to make to get one deal. Because we are in a tough market, we know that it might be 60 or more. Obviously, this is a bit of a guess until you can track it, but let’s start with 60 for this example. A great goal to help get you started would be to make 60 offers this month based on your buying criteria. The criteria being deals that should net $30,000. Focus on the fact that the goal is the number of offers, not the number of deals or the amount of money you want to make. That way, even if you don’t get a deal, you can, and should, celebrate the fact that you accomplished your goal. If you consistently hit action-oriented goals, you will see tremendous results.

I recently read a story about a college art professor that split his class in half at the beginning of the year to do a study on actions and results. One group was the quality group and one was the quantity group. The quantity group would be graded on the number of photographs turned in by the student. The quality group, as you can probably guess, was graded on only one photo for its quality. Guess which group turned in the best photos? The quantity group had more high-quality photos turned in because they were out practicing their skills trying to hit a quantity goal. Because they were not trying to take the one perfect photo, they ended up taking more action and better photos.

Disney in another great example. In the 80s the company had 3 CEOs and was not profitable. Then CEO, Michael Eisner, changed the way the company thought about the movie business. Instead of producing perfect movies, they went for quantity. In the late 80s and through the 90s they more than doubled the number of movies they were producing. They spent less time, money and energy on any one movie. The result? Blockbuster smash hits like; Beauty and the Beast, Aladdin, and Lion King.

Consider Resale Value Before You Renovate

When doing renovations, people rarely think about long-term resale value. Most families just want a really nice place to live and they work to create their forever home. However, life can be unpredictable. So while it is joyful to make a dream home, those dreams need to be balanced with an understanding of whether or not those granite countertops or that second story are good investments in the long run.

What is resale value?

We hear the idea of resale value quite often pertaining to real estate. The ideal is to buy a property that is a good investment and to have its value appreciate. Good maintenance and appropriate renovations help ensure that when it comes time to sell again, the property has gained equity and you’ll make money.

However, the amount of money you’ll make depends on market appreciation. Which is why it’s important to make improvements that fit the property and the neighborhood.

Location the key factor to consider

If you’ve bought a property by a highway or another not-so-great location, you probably got it for a good price. If that location’s value doesn’t increase during the time you own it, you’ll probably have to sell it for a similarly good price, even if you’ve done a lot of work on it.

Many property owners invest in renovations that aren’t in keeping with the neighbourhood. As a result, they end up selling for less than they invested, which can be heartbreaking.

Before you renovate, look at what has been selling around you – at what cost for what quality? If the most expensive home in your neighborhood sold for $400,000 after being completely renovated, it doesn’t make sense to style your house to a value any higher.

And really, how special are those $10-per-square-foot tiles anyway? Go with the $5 tiles instead.

Focus your investment to one or two elements per room. Make pricey items such as granite countertops, a fancy backsplash, or a higher end faucet; work like show pieces, similar to a piece of art.

Smallest may be best when it comes to resale
As for adding a second story to create more space for an expanding family, it may be worth it in the long run to hunt for a bigger home.

If you invest an extra $100,000 on a two-bedroom bungalow in a neighborhood full of two-bedroom bungalows, you may never recover that full investment. It may be a much better idea to take your equity and find a larger home in a neighborhood where your investment will hold and even grow in time.

When it comes to resale value, it’s always better to have the smallest house in an area with mansions rather than a $600K house surrounded by $300K houses.

Of course, creating a joyful home should always be the first priority. Just make wise decisions that will bring you prosperity and happiness for years to come.

Choosing the Best Green Home Builder

Today many people are “going green”, which means that they are becoming environmentally friendly in how they live their lives and minimizing the harm done to the earth. When some people decide to build their home from the bottom up, they decide to have a green home builder build their home. This contractor would build their home with low environmental and energy efficiency in mind. To find a green home builder you should talk to the contractors in your area. Some that will travel to your area to build your home but their services will add more expense to the cost of your home.

To ensure that you will have the best green home builder ask them what type of building material they will use. You should also inquire about their disposal methods to make sure they are in compliant with sustainability practices. The materials that they should use are non-toxic when possible, and environmentally friendly. They should also be materials that come from renewable sources, or sustainable material. This can include materials from homes that have been knocked down. This material can include old doors, cabinets, some of the wood to accent the home such as using the material for ceiling beams, and more. They should try to avoid using plastics and choose their wood carefully. You should ask to see examples of the green projects they have completed. Their construction philosophy should focus on green building. It should not just focus on using green techniques as a secondary technique. Make sure that the contract you sign states that it will be constructed from sustainable and green material.

A home builder may tell you that they are using green building techniques but it could be easy for them to start using less environmentally friendly techniques and designs to save money on materials so they can put more money in their pockets. This is why you need to be sure that they are a reputable home builder and have good references as a green construction company. They need to be knowledgeable about green techniques and processes and committed to green construction and design. If you want your new green custom built home to be built using unconventional techniques make sure the home builder can demonstrate they understand the techniques you want and can do them correctly.

Before you choose a green home builder, you should educate yourself on what constitutes a green home and the process to build one. This will help you to determine a good green home builder and to know if they are cutting corners using non-environmentally friendly material. Having a green home can save you money on heating and cooling costs, and if sustainable material is used it can save these materials from being disposed of improperly.