So you have been thinking of investing in property. Thats great. There is no doubt, property is a great investment class get it right and there is lots of money to be made, get it wrong and it is easy to lose lots of money. One thing for sure, it's not a get rich quick business and it involves a lot of work.
My name is Will Robinson and I am the director of Brentor Property Group. We started Brentor Property Group 18 months ago to help our clients, who are all people like you invest in property. We have been investing for ourselves for the last 10 years and wanted to help make it easier for people to invest and help them navigate round some of the issues we have faced over the years. Below are our 10 tips that we find help new investors when starting out. So here we go....
Before you start make sure you take the time to learn the ropes before making your first purchase. Errors in investing can generate some major losses if you don't watch out. Spending time to gain education is always a wise move. This does not need to be paid education, there is loads of content out there now. However, If you do decide to take paid education do your due diligence on the training provider, we have done a fair bit of training ourselves and the quality varies wildly.
Start small, cut your teeth on nice simple BTLs, or team up with a more experienced investor. This will mitigate your risk and hopefully avoid any expensive errors in the early days.
The property investing world is not that large, it's important to maintain a sterling reputation. This is why you must alway remain honest, genuine and always keep your promises. This allows you to be credible so that people can trust you and be loyal to the company you run.
Build relationships with people, this is so important. Get out networking and telling everyone what you're doing, find people that align with your goals and principles.
Learn a strategy so you are familiar with it and perfect it. It's easier to manage several properties if they are the same, you can also perfect the strategy as you build your portfolio. No matter what type of investing, keeping with what you know will really help you succeed.
Listen more and talk less during negotiations. Sometimes a person will negotiate against themself if you just let him keep on talking. If you listen closely, you are more likely to get the information required to make a deal, you might also learn something too.
Evaluate areas just as you do the individual properties. An attractive and desirable neighborhood usually performs well under most market conditions, while depressed areas can be a real challenge. Location will always be the key determinant for a property's value and the correct strategy to use in that area. Don't buy properties in the worst areas. Be certain to understand the local area where you intend to buy. Make sure you have done your homework. A good deal on a property in a bad area may be problematic.
Consider the possible rental income of a home when you project its worth. Investing for cash flow will keep your property business going and bring in a lot of money for you. You can always sell the property or refinance it to release capital.
When buying a property for investment purposes, it makes sense to affiliate yourself with a good handyman. The money you make will be used on repairs, otherwise.
Have some idea of your time's opportunity cost. Refurbishing properties might be something you are good at, but it might not be worth you do it yourself due to all the labor that is involved. Your time may be better spent on the hunt for another opportunity. Learn to outsource what you can. Keeping your time free allows you to focus on the important angles for your business. Work on your business not in your business for at least 40% of the time.
If property investing is something you're considering, this article gives you a few things to think about before you start. It is a smart idea to evaluate your many options and make the choice that is best for you. You will make much greater interest with property investments than with a bank account. Keep these tips in mind and think about how you can get the most money from investing. We specialise in Turnkey portfolio building to help clients scale and Passive investment opportunities, for those that want to be hands off or are just looking for a safe place to invest their funds that will actually provide an annual return, unlike the bank.
If you would like to discuss your options further or find out a little more about our Turnkey and Passive investments book in a free no obligation call with me. Click the link. https://calendly.com/willrobinson/property-consultation
We hope you enjoyed the article.
Kind Regards Will Robinson
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