Have you ever wished there was a short guide you could use to invest in property successfully? This article provides relevant property investing information, highlighting the fundamentals, in a short and informative way. So, whenever you’ve got a few minutes to spare feel welcome to read over it again and again.
Skills and Training
There are two kinds of people; those who prefer the DIY way and those who get the education before anything else. In addition to being support, getting the right property education and training shortcuts the learning process. Bear in mind that you’re also paying to evade making a lot of avoidable mistakes as an investor. The key here is to learn practically and theoretically. The skills or training provided with educational programs involve:
Many accomplished people start their success journeys following this practice and this is a learned skill. Even with property investing education, it’s important to establish your aims and plan of action before signing OTPs or negotiating deals with sellers. The SMART method allows you to set goals that are: specific (simple), measurable (meaningful), achievable (attainable), relevant (results-based) and time-bound (time-sensitive). Success comes with clarity of what kind of step to take and where these steps are going to take you.
Our students have a clarity regarding their short term, medium and long term goals and the idea which direction in property business to take.
Once you’re clear about what you want then you need to establish which strategy will help you achieve your desires. During your training, you’ll learn the two categories, cash or cash-flowing, that house the various strategies.
Cash strategies provide you with a lump sum of money after selling an investment property once-off. Here you must buy below and sell below market value to stand out from competitors. Some examples include: flips, back-to-back deals etc.
If you want money coming in regularly, then consider cash-flow. Here you can get a steady, standard monthly income on the condition that the rent of your tenants covers all costs as well as gives you profit. Multi-units, mixed-use buildings and developments are examples of strategies that cash-flow.
Our experts advise diversifying your property portfolio. Also, at our 3 Day Masterclass we cover 15 powerful property strategies. This will give you an idea on which strategy to focus on.
Do feasibility studies
By doing feasibility studies you’ll be able to decide whether or not an investment is viable, considering the resources required to profit from the property. In order to do your feasibility studies optimally, you’ll need to access reputable information such as reports from http://www.lightstone.co.za/, feedback from realtors, and records from the municipality etc. As part of the training, zooming into prospective locations to make informed investing decisions is also important. Even though there’s different opportunities in different locations, some areas sell properties best suited for homebuyers than investors.
Sometimes making money means spending money first. It’s important to be familiar with all the costs involved with investment properties such as transfer costs, lawyer fees, renovation costs etc. With rentals, you’re going to pay money for maintenance, and the services of a leasing agent. One way or another, there are costs involved. You need to do your math to ensure that you’re buying a property that’ll pay you and itself before you sign offers. Important lesson to remember is that you need t be aware of all the upfront costs first before you put the money down. Amateur property investor assume, estimate…professional know exactly how much is going to cost them and what kind of profit they are going to make. With Riches and Beyond you are surrounded by professionals who have been doing property business for years.
“In life you don’t get what you want…you get what you negotiate for!”
In order to succeed in property investing you need this skill and it’s also one you can learn. Talking to sellers or contractors requires some form of negotiation. The more you save the more value you get from your investment properties. Being adept in creating win-win situations, through negotiation, takes time and practice. A few key aspects associated with this skills include communication, persuasion and strategizing. As an investor, you need to be willing to compromise when dealing with buyers or sellers.
Weigh the risks and advantages
With property investing, there are rewards and risks involved. Before you sign any offers or start spending money it’s best to do your due diligence and refer to your goals to guide you. On that note, these are some risks to consider when investing: overleveraging property, market risk depending on inflation, vacant property etc. However, there are many great benefits in property investing such as: cash flow, tax deductions/benefits, leveraging equity, building a legacy etc.
Types of questions to ask realtors
- Why is this property being sold?
Getting information on the sale of a property influences an investor’s decision to buy it or not. Learning why the house is on sale allows you to negotiate with the seller. For example – you buy their property below market value before bank repossession and then offer to pay to transport their belongings to a new location.
- What is the neighborhood like?
By asking this question the agent will highlight key information about the area and the amenities around.
- What kind of strategies work best in this neighborhood?
Just as people’s preferences aren’t the same, areas differ too. Your role as an investor is to assess the needs of your target market against activities in the area.
- How long does it take for properties to sell in this area?
All goals are time-bound including property goals. Having an idea of the frequency of sales in the area helps you plan effectively, especially if your strategy involves buying and selling.
- What are some of the most common things tenants are interested in?
If you want to get tenants in your property it will be fruitful to ask this question to a leasing company or an estate agent. They’re constantly exposed to landlords or tenants and can guide you best.
- Are there any new developments that will take place in this area?
Make it a point to find out about possible future projects early if there are any; a mall or hospital that might be built. If you want to partake in those developments, gather information early and plan ahead.
Essential people required
You’ve probably realized that having a successful property investing business is a team effort. Between finding sweet deals, negotiating costs you also need to co-ordinate the people you’ll be working with:
- An attorney reviews or sets up the offer to purchase, a legally binding document signed by the seller and buyer.
- An accountant focuses on the financial aspect that affects buying and selling the property.
- A contractor carries the vision of the investor by physically repairing, renovating and building on the investment property.
- A letting agent manages the investor’s property and takes care of the tenants as a middleman.
- An estate agent puts up the property for sale, oversees the buying and selling process, as well as covey the seller’s interests to the buyer.
Concise property investing checklist
- Establish what you want from your investments
- Get the education and training
- Heed to the advice of experts in the market
- Research the market and do feasibility studies
- Weigh the risks and rewards of investing
- Commit yourself and take action
Are you ready to take your property investing to the next level? Do you want to learn and do more to succeed in the property space? We want to help you or hold your hand during the process. Fact is people’s lives have been changed through our teachings. Yours can too. Just register for a FREE online property investing webinar.