https://www.linkedin.com/in/mightypete/ (Mighty Pete Lonton) from thehttp://hyperurl.co/fireinthebelly ( Fire In The Belly) show is an author, soon to be TEDx speaker (Jan 2021), podcast host,...
https://www.linkedin.com/in/mightypete/ (Mighty Pete Lonton) from thehttp://hyperurl.co/fireinthebelly ( Fire In The Belly) show is an author, soon to be TEDx speaker (Jan 2021), podcast host, mentor, entrepreneur, property investor, husband, and father of three beautiful girls.
Pete’s background is in project management and property, but his true passion is the ‘Fire In The Belly’ show and project. His mission is to help others find their potential and become the mightiest version of themselves.
Pete openly talks about losing both of his parents, suffering periods of depression, business downturn, burn-out, and ultimately his years spent not stoking ‘Fire In The Belly.’ In 2017, at 37.5 years of age, that changed, and he is now on a journey of learning, growing, accepting, and inspiring others.
“Not everything that shimmers is gold. Just because it looks good and it smells good doesn’t mean it is good.”
Pete Lonton
Worst investment everPete started investing in property 20 years ago in his early 20s. It has always been something that has worked for him in the background. Pete, over time, came up with a very successfulhttps://myworstinvestmentever.com/ep278-daniel-st-jean-decide-on-your-investing-system-and-follow-it/ ( property investment model) that was super simple. The model looked for a 10% growth yield that brought a return on investment in three years. Pete retained the asset but would add value to it or buy an undervalued property and get it back up to value.
Exploring new opportunitiesPete had the opportunity to meet somebody who was a much bigger investor than him. The man was heading towards retirement, and his portfolio was about ten times the size of Pete’s portfolio. The man wanted to offload his portfolio, and Pete saw an opportunity to grow his portfolio. The two gentlemen quickly grew on each other and had a good rapport.
Sizing up the opportunityPete got invited to go and take a look at the properties with a view of potentially doing a deal. One particular property stood out as a good investment opportunity. The Gulf Open was coming to a location in Northern Ireland, and as a result, accommodation was under severe demand. The property could be developed into a guest house, or it could be knocked down and built into ten apartments. The property, therefore, had both short term and long term potential.
The universe bending to make this happenThe deal was a five-year lease, with an agreement to buy. So that gave Pete five years of a head start on the lease agreement. The sale price to be paid in five years was pre-agreed on the commitment to sell and for Pete to buy. With this kind of arrangement, financing the deal would not be a problem for Pete. Contracts were drawn in just a matter of days, and everything seemed to be moving along pretty fast. The pressure to close the deal was on.
One little issueEverything seemed to be right with this deal except one thing—it went against his property investment model. Pete started feeling off about the whole deal, and he decided to run it through someone else who would look at it with fresh eyes.
Pete assembled his family, friends, and colleagues, took them to the property, and asked them for their feedback. They were all against the deal. Their reaction came as a huge shocker for Pete but was also a big wake up call.
Backing out of an agreementFortunately, Pete had not signed the deal yet though they had had a gentleman’s handshake. Pete felt guilty about having to back out of the deal, but he had to protect himself from making his worst investment ever.
Lessons learnedStick to your investment modelDo not let anyone rush you into a deal, especially if it goes against your investment model.
Take time to make significant decisionsBefore you make a major decision, sleep on it, and give it some more thought. You never have to make a decision right away.
Not everything that shimmers is goldJust because it looks good and it smells good does not...
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