Knowing where to begin with investment property can be overwhelming. Many suffer from analysis paralysis because they quite simply don’t want to get it wrong. Ten different people will have ten different ways to tell you how they got into investment property but the reality is, what has worked for one, might not work for you.
First you need to decide what your goals are, what your current situation is and map your process out from there. Everything starts with a plan.
If you’re a regular listener of The Property Podcast, you’ll have heard The Robs discuss exactly how important having goals and a strategy is. From the very early days of the podcast they’ve pushed goal setting.
Let’s take a look at some of the main areas new (and experienced) property investors sometimes struggle with.
Finding the right property that ticks all of your boxes can be a time consuming task, particularly if you’re time poor. Many an evening and weekend can be written off trawling through the likes of Rightmove and Zoopla only to still come out empty handed.
There are so many options to consider:
You can put the work into finding investment property – we have a handy free course on how to find a property investment deal here – or you can work with an investment property sourcing company who will do the groundwork for you.
If you’re not yet sold on using a property sourcer, we have a video on working with property investment companies just for you.
We’ve compiled the top four types of property investor we frequently come across. You may have heard The Robs talk about this before on the podcast. But let us introduce you to them:
Freedom Fred – If you’re wanting to buy investment property to replace your monthly salary with the goal of quitting your full time job, then you’re a Freedom Fred.
Fred is the type of investor that’s ready to go – but the investment needs to be right. He’s driven by income and wants to invest wisely to maximise income and generate enough funds to quit the day job – or at least give him something to fall back on.
If this sounds like you, have a listen to this podcast episode where The Robs went back and spoke to a few Hubbers about their property investment journey. Also, try taking this course which will help you decide which property strategy is right for you.
Hands-on Hilary – Do you like being hands-on with every single aspect of the property investment process? If you do, you’ll be a hands-on Hilary.
Hilary loves every single aspect of the investment journey and wants to be involved in every decision, right the way down to which shade of magnolia should go on the walls. She has more time on her hands to get involved with the investment process and day to day management. But, if the process isn’t managed carefully, the entire process could run away with her and the whole project could end up way behind schedule and way over budget.
The trick here is to know your strengths. You might like getting involved with the nitty gritty, but are you really good at it?
If you think the super hands-on approach is for you, have a listen to this podcast. It’s particularly useful if you’re doing a refurb. And if you see yourself as a decent number cruncher and want to look at doing your own taxes, this course will be invaluable.
Long-term Lou – A generous pension, security for your family, and something to pass on. Ticking your boxes? Say hello to Long-term Lou. The bonus with being a long-term Lou is you already have the most important asset when it comes to property: time.
Investors like Lou want to make money from property but they’re in it for the long haul. A ‘get rich quick’ strategy isn’t what you have in mind, and you’d rather take your time and find investment properties that are truly right for you. High returns aren’t a big thing on your agenda either, you’re more focused on capital growth and future potential of your investment property.
Now we could tell you to listen to every single podcast episode, take all the university courses and read all of Rob D’s books before making your first move. But for now, give this podcast episode a listen and have a stab at this Property Hub University course and see how you get on.
Income Ian – He’s not necessarily looking for a ‘quit your day job in a week’ strategy, but he does want to start making money from property as soon as possible.
When income is your primary driver, it’s easy to get sucked in by false promises. Many property investors have been sold pipedreams from companies promising earnings of thousands of pounds each month. We’re not telling you what do to and what not to do, but before you do anything, have a watch of Mike Winnett’s video especially if you’re considering attending a property seminar.
Making money from property quickly doesn’t have to cost you a ridiculous amount of money but you will need to do your research. It will be highly beneficial for you to work with a bunch of professionals like Property Hub Invest, part of Property Hub, who can help you find a deal, sort your mortgage, rent out the property and even handle your taxes. It’s a win win!
Telling you to take action might seem extreme, but we’re not telling you to go out and buy any old property right this second.
Believe it or not, there’s a lot you can be doing before even looking for a property and there’s no time like the present.
Setting your goals and laying down your strategy are 100% the two most important things you need to do before anything else.
So what are you waiting for? Get going and educate yourself before jumping straight in. Let us know how you get on.