You don’t know what you don’t know
Gavin J Gallagher
Managing Director at EastPoint | Commercial Portfolio Manager | Speaker | Podcast Host | Property Investment Mentor
There are so many misconceptions out there when it comes to investing in property. I've seen people who have a little bit of knowledge quickly get themselves into trouble because they're just not aware of what they're doing wrong.
It should go without saying, but I'm not sure people are aware of the scrutiny that you need to give a deal. Certainly, if you're presenting a deal to an investor or a lender, they're going to look under the bonnet, and if you haven't done your homework, your deal’s going to be rejected.
But they’re not going to take you aside and tell you what you did wrong. They'll just say that the mortgage (or loan) hasn’t been approved, and you'll be left scratching your head.
Novice investors seem to make one of two mistakes when it comes to analysing a deal. The first is someone who thinks that they're buying in a good area and that’s enough for a lender or bank to lend you money. That’s the first mistake: there's an awful lot of nuance behind what makes a ‘good’ area.
The other mistake I see people making is them looking at what they can afford… and that's as far as they go in terms of analysis. They don't dive into the economics of the deal, just whether they can raise the deposit and make their monthly payments.
Understanding the finer points of a deal boils down to how experienced you are as a property investor. It’s one of the problems that I find when people join my courses: from listening to other people talking, they soon start to realise how much they don’t know!
5 steps to avoid common real estate errors
1.?????? Don’t get emotional about it: stay cool and rational
2.?????? Don’t put all your eggs in one basket: it means there’s too much to lose
3.?????? Don’t make assumptions: we all know the common saying…
4.?????? Don’t skip the financial analysis: really stress test the deal
5.?????? Don’t pay too much! (You’d be surprised…)
Podcast REPLAY: The Rebuild - Overcoming Setbacks & Challenges
In this replay episode I discuss the traumatic impact that prolonged stress or challenging experiences can have on your psychology and mindset.? I hope you find this one helpful.
On the Blog: A Halloween Horror Story
You want to hear a real horror story?! In this week’s blog I’m sharing the nightmare deal that nearly broke me…
LIVE Property Investment Q&A
Every Wednesday @ 7:30pm - 9:30pm (London time)
Join my LIVE Q&A session for Property Investors seeking answers. Anyone can ask a question but priority will be given to comments left by members of my FREE Skool community.
Q&A Replay - Is Ireland's PROPERTY market overheating?
I host the 90-minute Property Investor Q&A livestream every Wednesday evening at 19:30 Ireland/UK
Get your questions answered while hearing some of the latest real estate and Irish property market news - whilst based in Dublin, I have bought, sold, built and managed real estate across cities and towns on 4 continents so wider topics such as international property, general business & finance or the economy in general are open for discussion. Here’s the replay of a recent session to whet your appetite!
If you need help finding the right direction for a career in Real Estate, then take a look at my new training Your Real Estate Roadmap (link below).
Watch my FREE investor training video and download the PDF to learn the 5 key steps to building wealth through property and how to scale your real estate investment portfolio.
Inside I cover who I am, how I know what I’m talking about, why you should build a property portfolio and how to go about it, as well as the key steps to take you to the next level on the road to success.
That’s all for this week, see you next time!
Gavin J Gallagher