This book is for those who wish to change their life through property investment – and you, who are reading, are definitely one of them. So, what kind of sharing that this book is offering?
Investment and war are similarity. The ultimate purpose of investment and war is to generate and create a better living standard and lifestyle to people who we love and ourselves. And yet, the outcome for both is same either lose or win. There is no one can guarantee the success of the war or investment. Since then, there are many considerations before investing or start a war.
Samuel, the author, has been work in real estate industry for past ten years. He used to work as developer’s employee, thereafter became a property investors. Along his property investment journey, he met many investors. Some of them are extremely success and make tons of money, some of them pitfalls in their property investment and carried a lot of debts. Since then, he seek for a method that allow him to analysis each property investment opportunity systematically. He found his answer which inspired by “The Art of War” written by Sun Tzu. There is a methodology that offer step to step guide to buying investment property base on 5 elements.
Before that, here is some introduction of “The Art of War”. It is an ancient Chinese military treatise back to century BC. It is commonly thought of as a definitive work on work on military strategy and tactics. It had influence on Eastern and Western military thinking, business tactics, legal strategy and beyond. In fact, there are many people interpret this books base on their understanding. As these people come from different background, each of them has a unique interpretation and point of view.
The 5 considerations and 7 steps of calculation are found in Chapter 1 of The Art of War – The Calculations. According to this chapter, commander could use a set of questionnaire base on 5 considerations to calculate the chances of success.It is a system that allow us to better understand our positioning and analysis all the factors – external or internal – during the war or investment. In fact, it works similarities as SWOT (Strength, Weakness, Opportunity and Threat) analysis.
The 5 considerations are:
(1) Destination and Purpose (道)
(2) Timing (天)
(3) Marketplace (地)
(4) Structure and Market principle (法)
(5) Alternatives available to choose (将)
Base on the understanding of these 5 considerations, you could analysis any investment opportunities by applying these 7 steps of calculation:
(1) What is your purpose and priority?
(2) Which target markets that you are focusing?
(3) What are property cycle and marketplace condition?
(4) Property market principle
(5) Overall resources needed
(6) How to utilise resources to overcome the issues of insufficient resources or maximise your return?
(7) What are the risks and rewards that you can expected?
The journey of learning these theories is short, but to practice these theories takes a long way.Author practised this methodology in his property investment for past 10 years and fruitful outcomes are generated. He notice that everyone is unique. Everyone came from different financial background. What make other success may not applicable to you and me. By practising these steps, everyone are able to analysis a given property investment opportunity base on his or her personal financial position.
Indeed, these steps enable people to tailor make their unique investment plan. It covers not only how to analysis the given opportunity from beginning stage but also include preparation and exit strategy for particular investment opportunity. Overall, it doesn’t guarantee people to make tons of money in property investment but offers people tools to analysis the success rate of given investment opportunity. After analysis, you have gun on hand, and you decide whether to open fire or not.