7 Habits of Highly Successful Property Investors

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1 7 Habits of Highly Successful Property Investors

2 7 Habits of Highly Successful Property Investors In property investment there are people who have been hugely successful, making enough money to buy them financial freedom and there are people who have lost money and seem to lose money with every deal they are involved in. How can investors have such varying success levels especially when you consider they are investing in the same commodity - property? Property investment can be a very effective creator of wealth and many people have successfully mastered the art of making money in the property market, whether it s experiencing boom or bust. There is no magic formula or secret code; it just comes down to following some simple rules and sticking to them. These rules have helped guide hundreds of our clients. Take on board each rule and feel free to call us on if you have any questions. 1. Set Goals Goal setting has been the most important factor in the successful development of many of our client s property portfolios. It wouldn t be an exaggeration to say that it has been a life changing experience for many of them. Before you attempt to build a property portfolio, stop and think about what you want to achieve and set some tangible goals. Top 4 Goal setting tips 1. Write down your goals, you can t hit a target if it doesn t exist. Putting pen to paper will help you focus on what you want. 2. Be specific - stating you want to be rich is not a good goal. A much better example would be a target of 10,000 per month from your property portfolio in ten years time. This is a SMART goal. 3. Break down the big goals into manageable portions. Every month, list out what you can do to progress towards your bigger goals. 4. Refer back to your goals constantly. Don t write your goals down then file them away never to be seen again make sure you constantly refer back to them. Some people carry them around with them; some choose to create vision boards. Use whatever works for you, just keep them in your focus.

3 2. Create a strategy. Having goals will put you ahead of most property investors but to supercharge your success you will need a strategy. If your goal is a destination then your strategy is the route towards it. Creating a strategy may appear daunting at first but the time spent on strategy will save you many hours, lots of money and help you avoid amateurish mistakes. When creating a strategy it is best to work backwards from your goal and start to break it down into manageable chunks, this will make achieving your goal less intimidating. Often your goal will help you determine your strategy. For example if you have a longer term goal you don t need to be as aggressive and take as much risk. If you would like any help or guidance to create your own strategy request a call back and we would be happy to help. 3. Research It may not sound exciting but conducting research is critical if you want to become a highly successful property investor. Failing to conduct thorough research could be the most expensive mistake you make in property investment. Research the deal If you are presented with an investment opportunity, don t dive in immediately, make sure you do your research. Issues to consider include what is the current state of the property, is the property priced at below market value, what rental can you achieve? If it s a flat, how long is the lease, what are the service charges and ground rent? Get it right and the rewards could be fantastic. Research the area So the deal is great invest? No, you need to make sure the area is up to scratch. We may have discovered that choosing an investment property is about much more than just location, but you still need to research it. Look at what we call the good solid fundamentals. We are not talking about properties with a nice aspect or lovely garden; we are talking about the things that will make your property tenantable now and in the future. There are several issues that we take into consideration before taking on any investment for our clients. Does the area have good schools, shops, employment? We also look at investment levels and transport links. In our investment reports we also look at things like the average credit ratings of people living in that area, comparables and much more. Make sure you do the same. hello@rmpproperty.com

4 Research the people Who are you working with a solicitor, mortgage broker and a property investment company? If you haven t worked with any of these professionals before, make sure you ask the right questions. What s their background, experience and are they investors themselves? Would you feel comfortable taking advice from someone who has never invested themselves? Make sure you read 48 things you must research 4. Buy Below Market Value (BMV) If you want to be successful in property investment then you must always adhere to this rule. Buying below market value is what sets property investment apart from all other investment types. You can t go into a bank and ask for a below market ISA or ask a stock broker to sell you shares below market value but you can purchase property at below market value. A graph representing average UK property prices since So if you can buy an investment property below market value then why would you pay the full asking price? Sounds crazy but that s what most people do. To source below market value property you could research your market, speak with selling agents, network with other investors who may know of a deal they can t act on, or work with a reputable property investment company. It is often said that you make your money when you buy a property not when you sell. Make sure you follow this habit of successful property investors to ensure you set yourself up for massive success. 5. Create a power team The most successful people in property are the ones who surround themselves with experts. You too should look to create your own team of advisors or power team. Make sure you check the experience of all the people you recruit into your team. Ideally they will already be actively investing in property but at the very least they should work in the industry. The types of professionals you need in your team include a mortgage broker, reliable solicitor, letting agent and a mentor or someone with experience of building a portfolio. This is obviously a role Rescue my Pension executes very well for our clients.

5 6. Use systems If you are well organised from day one, it helps avoid problems further down the line. Make sure you sort out your bank accounts, contacts, accounts, mortgage deals, etc. If you sort out a system, it can make owning a property portfolio an enjoyable process. Those who fail to sort out the relevant systems can end up wasting time and money. Ask a more experienced investor or a decent property investment company to help you set up your own systems. A great book on systems is The E-Myth by Michael Gerber 7. Take Action Most people would agree that property investment in the long term is a good investment. The reasons are plain to see - a proven track record, income from day one, you can leverage, etc. People fail to take action as they either play out negative scenarios in their head or they have not had the correct education and have been influenced by someone who has scared them or put doubt in their mind. The other reason people fail to invest is procrastination, an evil disease that costs people huge sums of money. It seems no matter how much some people believe in the benefits property investment can bring to their life they can always find an excuse not to. Don t be that person, if you re keen to take action request a call back via our website and let s get you moving forward!