I welcome back Steven Clark to discuss the importance of scaling in the property investment industry. We delve into the mindset shift required when transitioning from smaller residential projects to larger commercial ones, and Steven shares his own experiences of scaling up his property portfolio, including buying residential property portfolios and HMOs at a larger scale.
KEY TAKEAWAYS
- Scaling in the property investment industry is crucial for growth and success. It allows for increased cash flow and the ability to build a thriving business.
- Scaling requires a shift in mindset and thinking. It involves moving from smaller residential projects to larger commercial projects, and being open to new opportunities and challenges.
- Stepping stones and gradual progression are important in the scaling process. Starting with smaller projects and gradually taking on larger ones allows for the development of skills, knowledge, and confidence.
- Negotiation skills are essential when scaling. Pushing the boundaries and negotiating deals that may seem out of reach can lead to significant discounts and better opportunities.
BEST MOMENTS
“If you want to grow a property business, it has to be done at scale.”
“You’re on the hook for big lending, big servicing costs of debt, bigger risks on the projects, a lot of stuff that can go wrong on the actual projects.”
“It’s doing the do, it’s taking the action and viewing these developments, viewing these opportunities.”
“Be patient but be brave. Look at projects, go out and look at some of these larger deals, have those discussions and stretch the envelope, stretch your comfort zone.”
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