Josh introduces Property Filter members to the concept of "SOS" Snake Oil Salesman — individuals who knowingly sell fraudulent goods or are themselves frauds, using it as a metaphor for financial situations encountered during our property journey.

Josh outlines three snake oil salesmen to be aware of while managing finances in your property business:

1. The Accountant

He could be your first SOS. Often overworked and functioning in a model similar to letting agents, accountants can become highly reactive, requiring more money if things get more complicated. In order to have your finances under control Josh recommends transitioning from a team of one to a team of four world-class professionals consisting of a: 

1. Finance Assistant (responsible for operational finance: making payment, chasing rents, who doesn’t need formal qualifications)

2. Bookkeeper (qualified by experience or AAT qualified, a person responsible for wrecks and checks)

3. Finance Manager (preferably a chartered accountant, responsible for data to information & creating reports)

4. Tax Accountant (for tax strategy only)

2. Your Bank Balance

The second SOS can be your deceptive bank balance. It changes every minute, making it an unreliable indicator of your company's health. Decisions based on your current bank balance can be detrimental. Josh advises moving from the bank balance to the balance sheet - a set of reports you review each month providing you with a holistic view of your company's performance. The three pillars include:

1. P&L Profit & Loss per Property (Past performance)

2. Balance Sheet - net worth of your asset, your assets minus your liabilities (i.e loans, mortgages, interests) (Present value)

3. Cash Flow - large inflows, and large outflows in the future (Future Problems)

3. You

The third SOS could be… you. Entrepreneurs love roller coasters, the adrenaline, enjoy the ride, want to do more and more deals, but are often not so keen on details. Josh emphasises the need to work both hard and smart, stressing the importance of a future forecast.

Future Forecast - 12 months ahead

Setting rules and returns upfront, knowing what to do when unpredictable situations arise, predicting profits and drawings to the penny, and sticking to your forecast even in the face of uncertainties are vital aspects.