There are many sources of inspiration that can be used to guide your property investment career, but there’s no better one than the lessons you can learn from those who have been there and done it before. Successful property investors usually sit in that space, because of the strategies they use to make the system work for them, so it would a mistake of anyone looking to come out on top in the Property Investment game not to take a look at their proven methods. We take a peek at a few of those now.
Lessons to learn from successful property investors:
1. Don’t Wing it!
One of the foundations of success in property investment is to have a plan. Don’t go into it thinking that you’re guaranteed to do well, so “ why bother planning ?”, because it doesn’t work that way. Creating a business plan, complete with both short and long term goals, enables the property entrepreneur to gain an overall picture of the market and to be better informed on what constitutes a shrewd move. We all know what ‘Proper Planning Prevents....”, that’s right - Poor Performance.
2. Stay Honest
Being Ethical and transparent is in no way a prerequisite for an entrepreneur, but it certainly goes a long way when building a network of contacts that can serve you well in your career. Also, your reputation as a property investor does tend to follow you around and if you’ve been a little underhanded in your previous exploits, there’s a chance that buyers and sellers might avoid you. Karma has a habit of returning the favour, so work honestly and you don’t need to worry.
3. Know Your Stuff
An unforgivable area of weakness for any property entrepreneur is the knowledge (or lack of it) of the market in which you’re looking to invest. Other things you just must have a grasp of are spending trends, mortgage rates and a whole host of useful information to guide your actions. All this information is freely available, to anyone who wants to obtain it, so make sure that ignorance is not one of your weak points. It’s not just market conditions that need to be mastered either, as there are raft of tax laws, building regs and terminology that you need to understand to be able to make considered judgements. Staying on top of the legal aspects of purchasing property and any updates when they occur, will protect you against making a bad investment and prevent a nasty surprise later.
4. Employ a Good Accountant
Any business venture will be deemed a success or a failure by what it says on the bottom line after all expenses are taken away. A good accountant will have a complete understanding of tax laws, acceptable expenses and will offset much, if not all of the cost of employing their services. The detailed insight an accountant has in this important area can be extremely valuable, so having one on the books is bit of a no brainer.
5. Professionals in Your Corner
A successful entrepreneur in any industry will often not be experts in all of the specifics of the trade they’re working with, preferring to lean on a carefully selected group of professionals who are able to advise on any given project. Making a success of things for yourself can be extremely challenging if you rely solely on your own knowledge and expertise. This may of course, incur additional costs, but the value to the process is priceless and can help you make a significantly larger return on your investment.
6. Know the Risks
Much is made of the gains that can be achieved in property investment, but the cold, hard fact is that you can lose and lose big, especially if you don’t protect yourself. Significant profits can be made investing in bricks and mortar, but it shouldn’t be seen as an easy ‘get rich quick’ scheme. A prudent investor will make decisions in full knowledge of what is at risk. Complacency can be a killer when it comes to making the right move and whilst we’re not trying to put you off investing in property, you must do so being fully equipped with full knowledge of all the risks.
7. Respect = Referrals
Further evidence of the need to be respectful during your interactions with property buyers and sellers can be seen when looking at how successful property entrepreneurs encourage repeat business. There are many people involved in the buying and selling of a single property and when you treat others you work with, with respect, the chances of referrals coming your way increases greatly.
Reputation goes a long way in business and if you leave those you work with, with a positive view of how you operate. they’re likely to want to work with you again.
So, as you can see, the best in the business operate professionally, with respect for others and with the dedication needed to be as informed and prepared as they can be. There are, of course, lots of other variables in the equation like good fortune (we all need a bit of that), but by following the basic principles listed above, you give yourself the best chance of prolonged, long term success in property investment.