In this episode of our 'Investor vs. Developer' series, Flux follows up on our previous conversation with more effective mindset-building tips. He now lays down a bite-sized and S.M.A.R.T. process that will practically sharpen your strategy and help one overcome a seemingly formidable task of debunking personal limiting beliefs one step at a time. Plus, he gives timeless advice on using a reward system that works!

Timestamps:
00:01:18 | How to Eat an Elephant
00:04:38 | Choose One, Focus on One
00:05:58 | Starting Small While Thinking Big
00:07:06 | Take the SMART Route
00:10:12 | Write That Dream Down
00:14:24 | From Paper to Plan to Action
00:16:20 | Reward Yourself
00:18:37 | Do It, Be Consistent
00:20:33 | Jot It Down in a Journal
00:22:57 | To Habits and Beyond

Resources and Links:

Now, a lot of people just go, 'Well, I want to make a gazillion bucks in property development'—this big broad blanket statement. And it's not very specific at all. And so just like [with] a GPS, you don't plug in the suburb, you don't plug in the city; what you do is you plug in the address. This is exactly where I want to go. 

This is Property Investory where we talk to successful property investors to find out more about their stories, mindset and strategies.

 

I’m Tyrone Shum and in this episode of 'Property Investor vs. Developer', we’re back in the property war room with Rob Flux from Property Developer Network. With more effective mindset-building tips, he lays down a bite-sized and S.M.A.R.T. process that will practically sharpen your strategy. Plus, he gives timeless advice on using a reward system that works!

Tyrone Shum:
Coming close on the heels of our previous episode on cultivating a property developer's mindset that follows a success formula, Flux now expounds on how one can overcome a seemingly formidable task of debunking personal limiting beliefs one step at a time —and he begins with the analogy of eating an elephant.

I think one of the limiting beliefs that people come in to this is there is so much to learn. And because there is so much to learn, it can be very, very daunting. And they see the giant elephant in front of them going, 'Wow, there's so much there. What do I actually do?' 

Now, we've heard the concept. How do you eat an elephant? Well, it's one bite at a time. 

The problem is that most people don't know how to chop it up into bite-sized pieces. Now, the individual bite-sized pieces are actually really simple to actually execute. But you need to know how to chop it up. Right? Am I going to take its trunk first? Or am I going to take its leg first? How am I actually going to do this? 

And so, I guess, if we start to look at it, if we don't break it up into bite-sized pieces, we start to see the permutation of all the different potential challenges that are actually going to sit out there. 

For example: There are hundreds of development strategies out there, right? There's subdivisions, there's townhouses, there's apartments, there's renovations, there's rooming houses that… Now every single one of them works, okay. But they don't work everywhere. 

So if we haven't chosen our development strategy, then we don't know where to start looking for that kind of deal. 

So the first thing is: You got to choose your development strategy. Then if you don't choose the development strategy, you are looking at many, many development strategies that could work in many, many areas. So now you have to start to become an area expert in many, many things in many, many places. And each council has its own set of rules for those same many things. 

Five hundred and thirty seven councils, so 537 different ways to do a subdivision. Five hundred and thirty seven different ways to do a duplex. 

So when people start to see that, it starts to get really overwhelming to go, 'Wow, there is just so much to learn', right? But if we break it down to the bite-sized pieces, if we choose our strategy first, I go, 'Alright, [it] doesn't matter which one I choose, because they all work. But if I'm just going to choose one that might suit my personal circumstances, when I choose that one, it's going to then inform [the answer to the question]: "Well, which council do I then go into next?"' 

When I go into that council, that's going to inform: Well, it's only one set of rules for that one council. When I then start to know the sets of rules, I can then start to analyse sites and go, 'Well, I can now start to recognise what does that duplex look like? What does that subdivision look like?', and I can actually start to see that my RAS starts to kick in. 

Because I start to become, I guess, an expert at the strategy. Then we want to find places where there's lots of opportunity. We want to find— when we['ve] found lots of opportunity, the next thing is we want to find proof that lots of people are actually doing what we want to do. 

We want to reverse-engineer their deals. We want to prove that those people are being profitable. And if they're being profitable, we want to prove that there's enough demand that by the time we do it, we will also be profitable. 

So when you step through one-by-one-by-one, and this is what we've broken down in our property development formula program, is those steps, when you break that down, it's actually really simple and you just solve the problem that's right in front of you. And what happens then is all the other problems don't start to just fall away. 

Very simply, if I didn't choose my strategy, if I had three strategies to choose from, and each one of those strategies could have had three councils that [I] could have worked in, and each one of those councils would have had, I guess, different sets of rules for every single one—all of a sudden, I've got 27 permutations of what it is that I actually need to do. 

Whereas if I broken it down and went, 'Well, I just going to choose one strategy', that's going to help me to choose one council. That's going to [help me] choose one set of rules. Now life is so much simpler. 

Yeah, yeah. 

And that's really what you want to do. It's just break down the elephant into the bite-sized, step-by-step pieces, and we call it a 'formula'. You know, and the formula actually hasn't an acronym. But you know, we don't have to go into that element here. But there is a step-by-step process. And it's actually quite simple. 

I love that. There's a saying, I don't know who quoted it, but [it goes]: 'Think big, start small' [credit quote: Seth Godin]. And you've broken it basically down into small little chunks [for people] to be able to follow, because small pieces are much easier to eat than one big elephant, which is supposedly that's the whole concept and the idea. 

And in property development, you just got to do little things at a time in order to build up to those big things, because eventually, if you don't start there, you won't get to that point. And that comes back down to what we talked about in the last episode.

Yeah, absolutely. And that comes down to—and I've touched on it before—about having your GPS setting [to] 'I know exactly where I actually want to go'. 

So the goal-setting side of things is super important in actually, you know, what it is that we're actually wanting to do. 

Now, a lot of people just go, 'Well, I want to make a gazillion bucks in property development'—this big broad blanket statement. And it's not very specific at all. And so just like [with] a GPS, you don't plug in the suburb, you don't plug in the city; what you do is you plug in the address. This is exactly where I want to go. 

So we want to set ourselves up something called a S.M.A.R.T. goal. Okay, so S.M.A.R.T. is Specific, Measurable, Achievable, Relevant, and Time-Bound. 

So now, if we can start to do that, I don't become 'Hey, I want to be a property developer making a gazillion bucks', but rather, I want to be specific: 'Okay, I want to do small-scale subdivisions, and I want to do it in this council'. 

I want it to be measurable: 'I want to earn X amount of dollars by X, you know, out of my project', so maybe it's $100,000 out of my next deal. 

I want it to be achievable. This is making sure that the goal is within reach; we're not stretching too far the first time. We want to make it relevant, so that I can live a life of financial freedom, so that I can go on holidays with my family, so that I can spend time with my kids. 

And [I want it to be] time[-bound]: I want to do that in 18 months' time or 12 [months' time], [or in] five years' time or whatever your goal is. 

So it's no longer 'I want to be this, I want to be a property developer earning a gazillion bucks'. But now it's 'I want to do small-scale subdivisions in Brisbane City Council, earning $100,000 a year, so that I can spend more time with my friends and family doing the things that I love by the year 2030'. 

That is a very, very specific SMART goal. And that makes it a lot easier for your brain to adapt to it than to just be 'I'm just going to make a gazillion dollars', because you'll never go do anything, which is too hard.

Now that I know that, when a problem comes my way—we were talking about being in the weeds before—, now what I do is I jump up to that 10,000 foot view, and I have a look at the problem, and I know where I want to go, [and] I know I want to do small-scale subdivisions, and I want to earn a certain amount, and I know where I want to do [it], and I'm looking at the problem that sits in front of me, [I ask myself] how does this thing serve me to actually get there? What's the skill I need to pick up along the way to get there? 

And that might determine whether or not I do or don't do a particular deal. 

Now, for example—simple thing, alright—a real estate agent gives you a phone call and says, 'Hey, I've got a cracking deal. You know, it's this great duplex site. And it happens to be in a Sydney suburb of Ryde', let's just say, but I'm doing subdivisions in a completely different council.

Now, if I looked at my S.M.A.R.T. goal, the first question I ask myself is, 'Does this fit my strategy? Does this specifically fit?'. If the answer is 'No', well, instantly, I'm not going to put any energy into it. I might instead turn around to the rest of the people in my community and say, 'Hey, who's looking for a cracking duplex site in Ryde?' Maybe I'll get a finder's fee out of it by flicking it on to someone else. But I'm not going to burn energy on it.

And if I can be that specific, then I'm actually going to progress towards my goal every single day. 

And that makes life so much easier. You're not wondering [where] you're supposed to be going because at least you'll have a specific direction, just like your GPS.

Yeah, absolutely. Now, the challenge is that a lot of us, when we're talking about goals, a lot of us have these unrealistic expectations of what a goal is. 

Now, I actually run a two-day weekend on mindset. It's called the 'Psychology of Property Development'. We haven't run it since before COVID. But so, you know, watch this space; it's coming back, folks. 

But in that, we talk about how to firstly identify your goals, and then start to prioritise them and score them and scale them, so you can easily work out whether or not it's truly a goal or whether or not it's really just something that you kind of 'Is it a wish or a fantasy or something like that?' 

Now, in part of that process, I've built myself a mantra that I live with quite something as part of my daily routine. 

So now all of us have dreams. We all want these fancy things, right? 

Yes. 

If a dream is not written down... So firstly, if it is written down, I should say, then it becomes a goal. Because otherwise, if it's not written down, it's just a fantasy; there's nothing that we actually can do about it. 

So the first thing we need to do is, when we think that something's achievable, write it down. [That's] super important. So then your RAS can start to process it. Your brain can start to analyse it. It can actually put some energy into it. 

Yep. 

Now, once you've written it down, you then need to break it down into smaller bite-sized pieces. You need to carve up the elephant, alright? 

So a goal broken down becomes a plan. 

Now, if a goal is not broken down, it's just a wish: 'I'd like to do that. But you know, I'm not actually putting any action towards making that actually happen'. So it's just a wish.

Now that we've got a plan, a plan backed by action becomes reality. If the plan is not backed by action, it's just a piece of paper. So we've got to make key decisions along the way and actually step through when we've got these fantastic ideas. 

Firstly, write it down, then break it down, then do the doing. 

It's really simple in order to succeed, and we want to make sure that that goal is that Specific, Measurable, Achievable, Relevant and Time-Bound, so that we can then have it believable, [and] we can do those many steps to actually get us to where we actually want to get to, [and to] make sure we have milestones that track our progress along the way. 

Remember, results was part of that that feedback loop. So we need to measure that we're actually getting those results along the way.

Coming up after the break, he walks through how he personally implements his goal-setting mantra on a day-to-day basis— a process that is bite-sized, clear, and timeless.

I know what my goals are in the long run. And so I set my intentions for the day to say, 'Well, what am I going to do today that progresses me towards that goal?' 

He highlights the game-changing value of giving oneself rewards when reaching milestones…

So when I've done X, whatever X is—maybe it's contact 10 agents, maybe it's send 100 letters out—whatever X is, then I'm entitled to that. I've earnt that binge.

He outlines the incredible potential a journal-keeping habit can give in the short and long term —wrapping the conversation with a gratitude attitude for goals achieved both today and tomorrow.

Once I got that out on page, then I would sit and reflect. And I would actually live in the moment as if it's already happened. 

And that’s next. I’m Tyrone Shum and you’re listening to Property Investory.

Tyrone Shum:
With a firm grip on effective habit-building tactics that can help in putting plans into action, Flux continues to elaborate on how he practically applies the concept of goal-setting and improving oneself daily towards personal and work success.

So everyone's got a slightly different take on this. But for me, personally, I do a morning routine. 

Everyone's morning routine is going to be slightly different. But, you know, I do something to wake myself up. So I might do... I get some exercise; I got a home gym here; I might go for a walk around, I guess, [and] do a 5K walk that sort of thing. But I'll get the blood flowing—that sort of thing. I come back, and then I set my intentions for the day. 

I know what my goals are in the long run. And so I set my intentions for the day to say, 'Well, what am I going to do today that progresses me towards that goal?' So [I] set those intentions for the day. I review how I went yesterday. 

All right, excellent. 

So while I had intentions yesterday to do stuff, did I or did I not do that yesterday? And what can I do better today? So can I become a better version of myself today than I was yesterday? 

Now, we're all going to fail from time to time. And if you don't achieve that goal today, that doesn't matter. When you review it tomorrow, don't beat yourself up for the thing that you didn't do. Instead, start to recognise the thing that you did. 

So then start to, in a gratitude journal, start to write down the successes that you actually got. What are you grateful for? What it is that you actually achieved? How did you actually progress your journey [which] now you should be grateful for? I guess, your friends, your family, your career, your your health, all those sorts of things. And [for] the actions that you took— you should actually do that. 

You should also reward yourself. Reward the fact that you actually did something. 

We mentioned before that feedback loop. 

If you don't see results, you're not going to believe that it's possible. So you're not going to do the action again next time. So one of the things to do that is to reinforce that you did the right thing. 

Now, a lot of us do it the other way around. A lot of us go, 'You know what, I want to binge on Netflix and avoid my work, because this series is great'. Instead, what I'm going to do is: 'Do you know what? I'm going to make... That binge on Netflix—I'm going to make that a reward'. 

So when I've done X, whatever X is—maybe it's contact 10 agents, maybe it's send 100 letters out—whatever X is, then I'm entitled to that. I've earnt that binge.

Yeah, that's your reward. 

And now I can reward myself. I can feel good instead of, you know, [going], 'Sure I'll watch one more show; yeah, I'll squeeze it in', and then you're worried why you didn't achieve anything. Right now it's 'Oh my goodness, I've actually earnt this. I'm going to enjoy it. I'm going to lap it up'. And then tomorrow, I reset and I go again, and I feel good that I actually did that the right way. 

So turn this things that you love—instead of being things that are 'time wasters' and 'procrastinators' and that sort of thing—, turn them into the things on your rewards list and have little mini rewards. So just [with] going and enjoying a cup of coffee at the local cafe—something as simple as that—you go, 'Well, I'm going do that because I achieved this X milestone', alright? 

So you don't have to have 'Well, I'm going to go buy the fancy car' —that comes later. You want to have little mini rewards. You don't have [to have] the big rewards, right? So when I lock in a deal, I'll go out and celebrate. I'll go out to dinner. I'll take my partner out to dinner, because I know that I've locked in a future profit. 

Now I'm not going to go splurge… Well, [maybe] I'll [go] splurge a little bit. But I'm not going to go overboard. I'm going keep it within the context of, you know, what did that thing actually recognise? 

Yeah. And I think that's important... 

If we do those things on a regular basis, if we shedule what it is that, you know, if we plan what we want to do, and then we review, 'Did we do it?', then inevitably, every single day, we're going to be doing something towards our goal. 

Yes. 

Now, if we're doing something towards our goal—[it] doesn't matter [what it is]; it could be one email, could be one phone call, could be something—, so long as you do something towards your goal, eventually, you're going to get there. 

That's right. 

Now, the more some things you do, the faster you get there. But it's about: 'What I need to take the action. I need to see the result. I need to start to believe that it's actually possible'. 

So maybe it is just one phone call today, maybe it is just one email. But do something towards your your goal every day; you'll inevitably get there.

Definitely. And that's more of the victory mindset. Because, ultimately, you're doing one step at a time, rewarding yourself with these little things, and it adds up to be greater things at the end of the day. 

I'm just trying to think of a book that I read. The 'something edge'— '[The] Slight Edge'. There is a [part in the book called] 'The Slight Edge' that says if you do one little thing every day, it can compound into something greater. And you know, if you just do that, it doesn't have to be anything big. But you'll notice that difference. It can happen over just a [short] period of 12 months. You never know. You just got to do it. 

It's the compounding effect. So there's a couple of books that talk to it. There's James Clear's 'Atomic Habits'. And there's another one whose name is escaping me. But they're talking about the compounding effect of little things done regularly and consistently. 

It's picking up the weight every day. Every day. It's not picking it up... It's not waiting to the weekend and picking it up 20 times. It's 'pick it up every day [for] 10 times'. 

Yeah. 

And if you can do small amounts regularly and consistently, you'll eventually get there.

Yeah, that's right. So your morning routine is really interesting. I really like it. I'm going to definitely take away a lot of these things and implement a little bit more. Because I'm already doing a morning routine similar to yours, but there's little nuggets there that you've shared [that I liked]... 

What about sort of, as you said, reflection, a journal— how does that fit into that picture as well?

It's something that I used to do quite consistently, and I guess have fallen away [from]. But I used to do an affirmation journal. 

For those who aren't aware, I've set myself up a personal goal of setting 1,000 people financially free. 

And so, every single morning, I would write out an A4 page of what it is that I was actually going to do to actually start to achieve that. And, you know, it started out as a page and a half. And as I did it every single day, the language got cleaner, and crisper and tighter, and I managed to eventually get it down to less than a page. 

And I would write that every single day. So it'd be almost rote learning as I write the word-for-word exactly [of] what it is that I actually wanted to do. And then once I got it out... so that got my, I guess, my subconscious mind actually thinking about that. 

Once I got that out on page, then I would sit and reflect. And I would actually live in the moment as if it's already happened. So I would put myself five years into the future and imagine that that thing had just come true. What was the feeling that that actually gave me? 

When I actually had that feeling, then I'd actually then come back and I would reread the passage with that feeling in mind. 

So now, when I set my intentions for the day, now my intentions have purpose, now my intentions... So now I said that I don't do that anymore. It's because it's now so inbuilt and indoctrinated into my subconscious that I don't need to do it anymore. So after a while, it just becomes part of what you do. 

But initially, you kind of have to build the habit. And you know, having an affirmation journal, or a gratitude journal, or both—both of those are really good ways to both be grateful for what you have achieved and also set your intentions for the bits that you have yet to achieve.

That is phenomenal. It's really important to actually understand and value that because, ultimately, to change a habit will take some time. I hear that it takes anywhere between 30 to 60 days to really ingrain that habit. 

And once that habit is ingrained in you, and it's a positive habit that you want to integrate into your life, then it becomes locked in for the rest of your life. And it's so powerful, because things like that go through, as I said, the victor mindset. And that's such a positive thing that will have a huge impact for your life [and] for the future as well. 

So yeah, I really, really appreciate that. It's been such a really good mindset series that we've kind of talked about now, Rob. And I guess we probably should just wrap it up here then and pretty much finish and close it off.

Absolutely, mate. There's a bucketload that actually goes into this. As I said, I was running a two-day event on this called 'Psychology of Property Development'. So watch this space; that we'll come back. 

We've got planned for a future episode some of the impacts of that negative mindset. So we're going to talk about the mythbusting. Some of the limiting beliefs that we tend to put in front of ourselves—we're actually going to start to break some of those down. 

We're going to look at some of those myths: It's too hard to start. I'm not smart enough. It takes me too long. All that sort of stuff. And we're going to break it down and do what it is that we've said before: Give you evidence of other people breaking that down, proving that it can be done and if someone else can do it, why the hell can't you?

Thank you to Rob Flux, our guest on this special episode of Property Investory.