5 Steps to Take If You’re Stuck Getting Started in Property

5 Steps to Take If You’re Stuck Getting Started in Property

Today I’m going to explain 5 key steps for you to take if you’re stuck getting started in property.

Being successful in property is no longer about just buying a house and renting it out. Investing is a business and if you spend time on each of these 5 areas you’ll ensure you buy deals which serve you and your goals.

Unfortunately a lot of people don’t invest time up front thinking about where they want to get to and end up wasting time and money.

I don’t want you to be in the same position. So let’s get going…

Spending time on each of these areas will create the foundations of a successful portfolio

Amateur investors don’t think about these things because they:

  • Don’t know they exist
  • Have money burning a hole in their pocket and just want to get started
  • Are swayed / influenced by others rather than making informed decisions

However you’re different. So grab a cup of tea, sit down for a few minutes and take action on the following key points…

Step 1: Set your property goals

Most of us don’t invest in property to be landlords - instead it’s a means to an end. So what do you want to get FROM your property investments?

In the same way you wouldn’t just jump in the car and drive, you shouldn’t invest with no end goal or destination.

For example:

  • How much cashflow do you want each month?
  • Why ROI are you looking for?
  • Do you want to leave your job or perhaps go part time?
  • Build a legacy for your kids or charity?

Setting clear goals will help you make decisions

Step 2: List the resources available to you

Investing in property isn’t easy and takes effort and commitment. And two big parts of investing are time and money.

Do you have time to find deals, analyse them, view them, put in offers, chase purchases, arrange builders, check on progress, speak to letting agents, and everything else that needs to be done?

How are you going to fund your property deals? Your own money, working with investors - joint ventures or loans? How much money do you need?

Your access to time and money will have a big impact on how you invest.

Are you time rich but cash poor? - perhaps start with deal sourcing or R2R

Maybe you’re cash rich but time poor? - look at joint ventures or a turnkey solution provider

Don’t start down a path and then realise it doesn’t align with time / money you have (don’t spend time climbing a ladder, just to realise it’s leaning against the wrong wall).

Step 3: What do you know about property investing?

How confident are you about investing? Are you prepared for the large numbers different tasks:

  • finding deals
  • stacking deals
  • structuring deals
  • financing deals
  • instructing and managing builders
  • finding and instructing letting agents
  • legislation, tax, health and safety requirements

The list goes on…

What training have you completed, have you listened to podcasts, read books? Or do you need help from an experienced mentor?

Step 4: What property do you want to buy?

There are an overwhelming number of different property business models, each with pros and cons. So research which model aligns with your goals from step 1 and understand how it works. For example:

  • single lets (Buy to Let)
  • HMOs
  • Serviced Accommodation
  • Blocks of Flats
  • Rent to Rent (R2R)
  • Commercial to Residential
  • Holiday lets

I often see investors attempting to use lots of different models, but the significant differences in deal structure, finances, experience requirements etc. mean they waste a lot of time starting from scratch, not making any progress.

So focus and get clear.

Step 5: Where do you want to Buy Property?

Finally, after you’ve chosen your business model, you need a location. Think about:

  • Whether you have the time to travel a long distance?
  • Are you using a sourcing company to act on your behalf?
  • Is there the right type of housing type available?
  • What is tenant demand like?
  • What is the average property / rental price?

My advice to you is choose the area closest to you, that satisfies your investment requirements. Don’t jump on a social media band wagon!

There is a lot to digest this week, so if you need help, connect using the links below.

TL;DR

Step 1: Set your property goals

Step 2: Make a list of the resources you have available

Step 3: What do you know about property investing?

Step 4: What type of property do you want to Buy?

Step 5: Where do you want to Buy Property?

Andy


Whenever you’re ready there are 3 ways I can help you:

  1. Subscribe to my weekly newsletter for tips and tricks about investing in property
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