BLOG: Why amateur property investors shouldn’t go it (totally) alone
As a professional property investor, I have found that while people enjoy the financial benefits of owning investment property they do not want the worry of buying the right property, finding and managing tenants, or dealing with maintenance issues. They do not want, nor have time for, another job.
Property investing is a professional business. You must learn the fundamentals of property investing before starting out, then buying and running your own property does not have to be hard work.
You will be able to use other people’s skills and experience to manage your portfolio for you, whilst having the basic knowledge to be in control.
The fundamentals include knowing: –
• ALL the expenses in buying, running and maintaining the property even allowing for contingencies
• where in the country properties give good cash flow and where they go up in value more quickly
• what makes the right property to buy for you and your tenant
• how to reuse your initial deposit over and over again
• how to check out purchase propositions from home with confidence
More often than not, the best property for you may be outside your locality. You can direct ‘property finders’ to look for a property that meets your criteria in other areas, and because you know ‘how the numbers work’ you can check out their propositions without travelling all around the country.
A good property finder will often be able to negotiate a better buying price than you could. This discount builds in equity in your property from day one.
You can then arrange for a letting agent to find a tenant and manage the property for you on a daily basis.
You need to check that your predicted rental income exceeds ALL your expected expenses, even allowing for empty periods. It is also highly beneficial to buy in a location where there is a continuing high demand for people to buy their own home.
Many new investors try going it alone and realise after a few years that they have made costly mistakes.
I suggest that you find a mentor who you can trust and who understands your specific needs and desires; someone you can work with and supports your personal development. You will achieve your goal more quickly.
My passion is to help people, through my education and mentoring programmes, to accomplish financial independence so you do not have to rely on others to provide you with a salary or pension.
If you would like to find out more, I discuss this topic and much more in my book, Retire Early Retire Wealthy – Your essential guide to Successful Property Investing (£14.99 Panoma Press).