Brett Wood Interview - Managing Director of Your Property Club

Brett Wood is a man on a mission. His company 'Your Property Club' helps people to take full control of their financial destiny through the successful invesment in property.

Your Property Club, is different from many other property businesses primarily due to the fact that they invest so much time and effort into helping people develop the knowledge and emotional skills necessary to build a property portfolio...


The Interview

Damien Senn: What was it that first attracted you to developing a career in the property business?

Brett Wood : I had been working in corporate consulting with many of Australia's largest companies. As I earned more and more money I became worried that I still had not created any significant wealth. I turned to personal development seminars and books, thinking they could hold the answer but soon realised that positive thinking doesn't generate real wealth. I kept looking around and came to the conclusion that the only thing that seemed to guarantee wealth was property investing. I started as an estate agent and noticed that many deals would fall over due to finance problems, so I became a Mortgage Broker. That was 12 years ago now and I have never looked back.

Damien Senn: Now you've just signed a publishing contract for your first property investment book with Law Pack. Tell me more about your writing journey and how you went about getting your book published?

Brett Wood : It has been one of the most frustrating yet most rewarding experiences in my life! I’ve wanted to write a book for many years but it was never the right time, and then about 2 years ago I made a firm decision to bring together the strategies, structures, principles and practices I have used to build my portfolio. It was the culmination of a lifetime of reading and putting what I had read into action.

Optimistically, I first thought it would take around 3 months and it has turned into a journey. The more I wrote the more I had to write. In the end I had to decide to cut it back and focus on the core message.

I finished the book in December and went searching for a publisher. It started out with buying just about every book on the shelves about property. I found what was unique about my book and developed a clear picture of the market it would appeal too. I then researched each publisher and came up with a short list. After a lot of research I chose Lawpack and then put all my energy into selling them the idea. It took about 6 weeks to convince them and the book should be out in July 2007.

I think the biggest lesson is to write it for your audience -- not to get published. Show you're passionate about your topic and show the publisher that you are prepared to back up their efforts 100%.

Damien Senn: Your business 'Your Property Club' is growing from strength to strength. How did you start the business and what have you learnt along the way?

Brett Wood : I originally started the business to back up the “Insider’s Tips and Tricks” newsletter I wrote to my investors. At that stage I was helping to build another property club business but unfortunately they didn’t share my long term vision. So, after many sleepless nights (isn’t it funny how we still fear change, no matter what level we are at?), I decided to part ways and put all my energy into Your Property Club. Luckily, many good people came with me, and with their support we were up and running within a few weeks. This gave me what I had been searching for: total freedom to grow the business.

The biggest lesson I have learnt so far is to hire passionate people and reward them well. My team has been with me now for 2-3 years with not a single person leaving. It makes for a really strong foundation for the business and means the clients have multiple relationships within the business. Apart from team, I think cashflow is the biggest consideration for starting the business, I was lucky to have my property portfolio to back me up.

Damien Senn: A lot of people in the property arena try and encourage investors to speculate using strategies designed to return quick profits (often with disasterous consequences). How does this vary from your set and forget property investment strategy?

Brett Wood: It is possible to make quick profits, but the reality is that most people in the UK are largely uneducated about the intricacies of property investing and unfortunately for them, the level of salesmanship is quite advanced. This can leave a massive gap between what you think you are being sold and what you are actually likely to achieve.

I always work on realistic worse case for clients. This way I know they are likely to achieve exactly what I have sold them. I also teach them my “set and forget” strategy, which allows them to “set” up the portfolio and then 'forget' about it until you need to do something. Things like using direct debits, accurately providing for cash flows, using lettings agents.

Now don't get me wrong; you never really forget your portfolio -- you simply do the things that allow you to forget it for longer periods of time and get on with the more important things in life.

Damien Senn: Many would be investors often worry about the right time to buy property and often this holds them back from every getting started. When do you believe is the right time to buy?

Brett Wood: “Now”. “Now” is always the answer to that question. The real problem is that most people are so frustrated that they didn't get involved 5 years ago and so fearful that it won't keep going the same direction that they procrastinate. I always say education sets you free. The more quality education you get the more you'll realise that property and property cycles act in very predictable ways. As long as you understand these ways or cycles you can take advantage of them.

The fact is that when the property market is galloping upwards you get great capital growth, but only small discounts or deals. But when the market is stagnant, what you lose in capital growth you gain in the bigger discounts and deals. The trick is to have a proven set of strategies for any market. This way you can buy and make money in any property market.

Damien Senn: You had an interesting experience recently where you played the new version of Monopoly (the one with the credit card machine instead of the cash). How did your experience of playing the game differ from playing the original version?

Brett Wood: A frustrating experience! Not only did I get beaten, but I almost lost my temper at the fact I had no idea how much money I had. The problem with the new monopoly, (the one with the credit card machine instead of the cash) is that you constantly have to go to the “cash machine” to find your balance. It just doesn't feel like your money and you certainly don't treat it the same as cash I found. When I used to play the game years ago, I would have piles of money allocated for difference purposes. A cash card doesn't allow you to do this. It's a stark reflection of the way our lives and finances have turned as the credit card has become more and more in use. My advice is buy the old monopoly if you want to teach your kids about money. Let them feel real cash between their fingers, not a figure on a computer screen.

Damien Senn: On your website you have an incredible amount of great free information to help educate investors. How important is the right education in the likelyhood of investment success?

Brett Wood: Absolutely critical. The most troubling thing about the UK property market now is that there are so many people with equity in their homes yet so little financial or emotional intelligence. The information on my website is free because it’s vital that it gets out to people before they make the many common mistakes that new investors make.

Let's face it - financial competence is never taught as school and you cannot go to university and learn it. Most people have to learn from the school of hard knocks and that hurts. I have structured my website in small bites of easily digested bits of information rather than as a dry workshop or technical seminar that goes in one ear and out the other.

Damien Senn: What kind of results have your clients achieved by working in collaboration with 'Your Property Club'?

Brett Wood: My business model is 'Building your portfolio from 0-10 properties'. That’s our focus and I have already had a number of clients who have achieved this. But more important than achieving the 10 properties in a short space of time is integrating lifestyle enhancements along the journey.

The mission isn’t to get to 10 properties and then start living. Building a portfolio is about creating a life now and in the future. It’s great for me when clients get to the point they can start to think about extra holidays, hiring babysitters, dining out, catching taxis rather than the tube. These are real results that our clients achieve day in and day out.

The flipside is the emotional side. I always say my job is 90% emotions and 10% houses. Putting people in control of their financial future is an amazing accomplishment but often times it’s an emotional and educational shift rather than a financial one.

Damien Senn: What personal attributes do you believe make a good property investor?

Brett Wood: Discipline. Most people think it’s about how much money you have or make but in fact I meet plenty of people earning over £100,000 that are no better off than people on £20,000. At the end of the day if you are disciplined and get the right education and support you will succeed.

Damien Senn: What memorable mistakes, if any, have you made in business? What did you learn from them and how can they be avoided?

Brett Wood: Trusting people and not getting it in writing. I’ve made this mistake four times now if you can believe that. A recent experience involved building someone else’s business with the promise of a share. I kept my side of the bargain to any measure, but of course, the deal changed when it came time to pay up. Luckily, I had my property portfolio to support me while I did what I needed to do.

Damien Senn: What are the best and worst things about being an entrepreneur?

Brett Wood: I think it’s very easy to call yourself an entrepreneur when really you’ve just created yourself a job with obscene hours and low pay. I think a real entrepreneur is someone who can rise above the business and create something that gives them more life.

As for best and worst? The best has to be the freedom it allows me to travel, fly helicopters and the thought that I have helped many people change their financial future. The worse parts are all the red tape and compliance that you have to do. The financial and governmental requirements on small-medium business can be stifling but it’s always worth it. I am a big believer in getting to the point where you can hire people to do this for you.

But the best and worst thing about being an entrepreneur is that the buck starts and stops with you. No-one else!