The Property Learning Cycle

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The Property Learning Cycle

Property Learning Cycle

At RMP we are passionate about education; we provide our clients with podcasts, blogs, emails and a toolkit so that they can develop their knowledge, skills and expertise in property development.

It’s interesting to observe how people approach their own education and how they use it to invest in property. Some use very little education and take significant action and some will learn everything and fail to take any action at all. Neither of the two are ideal, what you need to do is give yourself a good base of education to work with that will allow you to make sensible and considered decisions that will inform future action. The good news is there is a learning cycle that you can use to assess where you’re at as an investor.

The property learning cycle will help you assess where you’re at education wise and hopefully allow you to identify your strengths, weaknesses, or gaps in your knowledge base. We will look at the four stages of the property learning cycle, what they are and what you should do if you find yourself at any given stage.

Stage one – Unconscious Competence

Unconscious competence means that you’re not aware that you don’t know, and that you lack the understanding and competence to manage successful property investment. However, you have no idea that you lack the knowledge. Property investors that fall under this category tend to be impulsive. They have no financial education so they are wasteful with their money. The old adage “a fool and his money are soon parted” applies to those who are unconsciously incompetent. They often fall into the hands of property sharks who take advantage of this type of person as they are easily led and are happy to be sold a dream that simply won’t materialize. Would-be investors who fall into this category are often ‘know alls’ stupid, or both.

What should you do if you’re in this category?

We fear for people who are investing in property at this stage as they are pretty much doomed to fail. The good news is that the fact that you are reading this blog shows you’re not at this stage, at the very least you’re at the next stage which is….

Conscious Incompetence

If the previous category sounded a little brutal don’t worry, it gets better from here on in. People who are consciously incompetent in the property learning cycle acknowledge that they don’t know enough to get started. This is where the majority of people start in the learning cycle. They realise that they have a knowledge gap and that they to fill it. They will be in the process off educating themselves about all the key aspects so that they can make better informed decisions. Topics they will be learning will include;

● Goal setting
● Strategy planning
● Leverage
● Basic mortgage knowledge
● Yields
● Choosing experts to work with
● Basic finance and law

What should you do if you are in this category?

Continue to build on your education, reads blogs, listen to podcasts, read books and talk to credible people who are more experienced than yourself. A word of warning – make sure you don’t end up prolonging your stay in this category. Some people end up doing so much research and knowledge building that they end up suffering from analysis paralysis and fail to start at all. Remember, after building a basic knowledge level, the most positive action you can take to extend your knowledge base is to do it for real. You can read all the material and speak to all the experts but actually investing will develop your knowledge far beyond anything else. Once you have invested you will hopefully progress one of the next two categories.

Conscious Competence

Conscious competence means you know that you know. You have all the basic knowledge tools required to invest in property and you are fully aware of this. Whenever you are presented with a challenging decision to make you know you have the knowledge to deal with it and all the contacts to go to. If you’re in this category you are most likely to have invested already and maybe you’ve accumulated a small property portfolio. Continuing to build your portfolio from here seems easy and not intimidating.

What should you do if you’re in this category?

Continue your good work and continue to build on your experience, use your knowledge to engage with people whom you know are experts in their fields and avoid the charlatans and sharks.

Unconscious Competence

Unconscious competence means that property investment comes naturally to you. You do it without even knowing how you do it, this is the Nirvana of property investment. There are very few people who have reached this in any field especially property investment.

Malcolm Gladwell the author of the international bestseller ‘Outliers’ says that to become an expert in any field requires around 10,000 hours of study and application. This equates to working and investing in property on a full-time basis for 50 weeks a year for five years. Most investors run their property portfolio on a part time basis alongside their main day job meaning that even if they have the right systems in place they may be spending no more than five hours a month on their property investments. At that rate it would take 167 years to reach the same point so for most people this is unachievable.

What should you do if you’re in this category?

Bask in your property investment awesomeness as you are quite likely to be an expert in your field. However, beyond the ego trip you may want to put your knowledge to good use and help others to move up the property learning cycle.

Okay so I understand the property learning cycle, what’s next?

Most of the readers of this blog will fall into one of two categories – consciously incompetent or consciously competent. If you still have learning to do don’t worry, nobody was ever born an expert. By acknowledging that you still have to build up your skills and knowledge you’re far more likely to be successful.

Remember to build a good knowledge base and then take action, the first property you ever invest in will be the hardest. Equip yourself through education and by surrounding yourself with experts and you will find the process a lot easier.

Once you have begun, the transition into conscious competence happens very quickly and you will wonder what all the fuss was about. So wherever you are in the property learning cycle good luck and continue to build your knowledge as ‘the person who thinks he knows it all is the biggest fool’ so never stop educating yourself.

If you want to build on your property knowledge make sure you have downloaded our property investment toolkit it’s an ever-growing resource of property knowledge and it’s free!

Good luck on your property journey.

2017-08-02T13:25:02+00:00 June 4th, 2013|Blog, Property investment|