Let us hear your story.

[Spider]

There has been some wonderful participation in this forum. Let's crank it up a notch. Share with us (if you dare) an incident - a particular occurrence - when "Stinkin' Thinkin'" on your part, a Limiting Belief or a bad money attitude, helped you miss a financial opportunity or otherwise 'kept you out of the money!' And then share the lesson you learned from it.

[Chuck D]

Well Spidey.

In 1998, I lived in a an unusual flat in part of East London that no one was buying in, and was offered it at £80,000.

We were paying £810 per month rent.

My friend said "Thats outrageous, he'll never get that for it".

I bumped into the girl who bought it, and she sold it for £350,000.

My flatmate and I still talk about it when we see each other.

You could say its left an imprint....

[Spider]

I get the story, Chuck, but I don't see where a poor money attitude or limiting belief contributed to it. What was the bad money belief involved here? And what did you learn from the lesson?

[Chuck D]

I get the story, Chuck, but I don't see where a poor money attitude or limiting belief contributed to it. What was the bad money belief involved here? And what did you learn from the lesson?

Sorry, I got interupted.

I already had a flat, and was worried about owning two properties - the crash of the early 90's was still in my mind - and I bottled it.

I guess that I let emotion - rather than the simple pragmatic facts - make my decision. We were paying more in rent than we would have paid in mortgage!

Now I have three properties, as we approach a "slow down".

*Bites nails*.

What I learned was - DO THE NUMBERS.

[Spider]

Sorry, I got interupted.
I already had a flat, and was worried about owning two properties - the crash of the early 90's was still in my mind - and I bottled it.
I guess that I let emotion - rather than the simple pragmatic facts - make my decision. We were paying more in rent than we would have paid in mortgage!
Now I have three properties, as we approach a "slow down". *Bites nails*.
What I learned was - DO THE NUMBERS.

May I make a suggestion?

From the portion of your post that I emboldened, it seems to me that the "Stinkin' Thinkin'" still exists. Whatever the limiting belief was before, it has not been eliminated because you are playing the same ritual in your mind now.

I think your identification of the lesson as 'do the numbers' is great, and, if you have done the numbers this time you should not be 'biting your nails.' But you are, you say!

So, what was the limiting belief and why is it still in effect?

[Chuck D]

May I make a suggestion?

From the portion of your post that I emboldened, it seems to me that the "Stinkin' Thinkin'" still exists. Whatever the limiting belief was before, it has not been eliminated because you are playing the same ritual in your mind now.

I think your identification of the lesson as 'do the numbers' is great, and, if you have done the numbers this time you should not be 'biting your nails.' But you are, you say!

So, what was the limiting belief and why is it still in effect?

Spider

The reason that I am "biting my nails" is that a major financial institution - Northern Rock - with whom I held my mortgage on one of the properties fell apart last year.

That means that they wont be offering me a new mortgage, and they have thrown their standard variable rate up to above 8% to avoid people borrowing money from them.

I had - quite correctly - worked my numbers on the basis that I would always be able to pick up a remortgage at marginally more than the "going rate" from my lender without having to jump through to many hoops.

My numbers were correct, assuming NR didnt go to the wall, which they did.

If I could have seen that coming, Warren Buffett would be calling me for tips...

[Spider]

Spider
The reason that I am "biting my nails" is that a major financial institution - Northern Rock - with whom I held my mortgage on one of the properties fell apart last year.
That means that they wont be offering me a new mortgage, and they have thrown their standard variable rate up to above 8% to avoid people borrowing money from them.
I had - quite correctly - worked my numbers on the basis that I would always be able to pick up a remortgage at marginally more than the "going rate" from my lender without having to jump through to many hoops.
My numbers were correct, assuming NR didnt go to the wall, which they did.
If I could have seen that coming, Warren Buffett would be calling me for tips...

Chuck,

What I'm talking about is, supoose your stinkin' thinkin' was a limiting belief that real estate property values cannot go up forever. That would translate into the £80,000 property was not going to increase to any great extent, but it did and you missed a perfect opportunity. And, now, that same limiting belief is having you doubt your ability to remortgage your existing property.

Whereas, dispensing with that belief would allow you to believe that your property will increase in value, giving you a greater value to loan ratio and make it *easier* to remortgage.

Then, the Northern Rock incident becomes a mere blip on the higway and of no great significance.

So - what is the limiting belief (or whatever it is) that is making the Northern Rock collapse so troublesome for you? Or, to put it the other way round - what would you have to believe so that the Northern Rock collapse is to your advantage?


If I'm challenging you too much in public, please say so and I'll stop.

[Chuck D]

Chuck,

What I'm talking about is, supoose your stinkin' thinkin' was a limiting belief that real estate property values cannot go up forever. That would translate into the £80,000 property was not going to increase to any great extent, but it did and you missed a perfect opportunity. And, now, that same limiting belief is having you doubt your ability to remortgage your existing property.

Whereas, dispensing with that belief would allow you to believe that your property will increase in value, giving you a greater value to loan ratio and make it *easier* to remortgage.

Then, the Northern Rock incident becomes a mere blip on the higway and of no great significance.

So - what is the limiting belief (or whatever it is) that is making the Northern Rock collapse so troublesome for you? Or, to put it the other way round - what would you have to believe so that the Northern Rock collapse is to your advantage?


If I'm challenging you too much in public, please say so and I'll stop.

No Spider its ok.

My belief is that long term, the value will go up.

The question is Spider, do I want to pay a premium for the property in the meantime?

I have done the sums, and I would need to fund the property to the tune of approx £250 per month while the value, and the rental markets are where they sit today.

Now, that will go down if interest rates fall - unlikely - or go up if they rise - more likely.

Likewise I expect property prices to fall in the short term - next 2/3 years - and so why leave my equity in a falling asset?

Why would I want to pay £9000 to keep something for three years that is only going to worth then what its worth today?

Limiting belief? Or pragmatism?

[Spider]

...Limiting belief? Or pragmatism?

That's for you to say. My purpose is only to get you thinking 'outside the box' - to get you to think differently to your usual thoughts. If you think the same way you've always thought, you are likely to get the same results you always got.

You cannot outperform your self-image!

[Coach Morse]

Up until the age of 27, I had the limiting belief that in order to open a business or take advantage of a business opportunity a person needed to have a lot of money.

During a conversation with my boss one day, the subject of apartment complexes as investments came up to which I made a comment to the effect that if I had a lot of money I could take advantage of such opportunities.

My boss then proceeded to rip into me about how all a person needs is an idea and the courage to sell it and how the only difference between me and the real estate investor was that he had guts and I didn't, AND he threw in for good measure that I was the sort who could never run a business - that I would work for someone for the rest of my life, because I was gutless.

Yes, he was a jackass, but his hard-hitting comments changed my view, as well as created a lifelong desire to prove him wrong.

So, when I looked into the possibility of opening my first Subway, I didn't let the fact that I had no job, no money and no collateral for a traditional loan stop me from finding a way to get my business open. I ended up using a creative combination of private loans, credit cards and equipment leasing and opened my store 100% financed.

It's not quite a missed opportunity story, but it has a happier ending!