Property Investment is about Stepping Stones
There's a journey that a successful property investor takes that seems to work the best. You see, it’s not just about the strategy, it is about the right strategy for YOU and the TIMING of the right strategy for YOU
Step 1 - Get educated
Step 2 - Learn foundations/fundamentals [B2L, BRR, JV's, Flipping perhaps]
Step 3 - Systemise foundation strategies
Step 4 - Intermediate strategies [Deal Packaging/property biz, HMO's, Options IC's etc]
Step 5 - Systemise intermediate strategies
Step 6 - Advanced strategies [Assisted selling, Title splitting, Commercial (Low end retail, office space, small Pub conversions, change of use)]
Step 7 - Systemise advanced strategies
Step 8 - Expert strategies [Super Commercial (High end retail, Trophy, Hotels, Casinos)
Step 9 - Systemise Expert strategies
To get to each level, experience in the previous level, and especially the systemisation, is important. To make each level work, results in the previous level need to have been achieved.
And the common thing I see is people trying to jump in at level 4 or worse at level 6 without the necessary grounding or experience.
To get the level of income you want per property you are in levels 4 & 6. Do you feel like you have experienced enough of levels 1 to 3 yet [a genuine question not an assumption]?
To move through each level takes a small step into the unknown, and we don't grow or progress unless we move somewhat uncomfortably into the unknown.
But to jump more than one level usually ends in wasted years and money and pain, or back tracking back down a level and 'starting again.'
Of course everyone wants the bigger chunks of cash.
1. Have they gone through the levels and earned the right?
2. Are they prepared for the sacrifice? When people say 'it takes as much time to do a deal for £100 cashflow as it does £700 cashflow' they have no idea.
It is higher risk, more variables, more research, more time, more specialist knowledge - more risk more reward. It only takes less time when they master it because they have done it many times [by which time it's often time to step up to the next level].
There's nothing wrong with smaller deals - they are easier and when you get good at them you can, for the most part, systemise and repeat.
£700 - £1000 net profit [I guess per month] on £30 - £50K is between a 15% and 40% return - definitely at the high end of the 'returns' spectrum. Especially passive. Often the best way to get £700pcm is to get 7 good single lets at £100pcm, because you have all the other benefits, lower risk and future rewards.
Often... getting bored means getting good(!), or chasing much bigger things comes from other people's marketing.
I know many VC's who lose 100% of 8.5 out of 10 investments. But 1.5 win BIG. High risk/high reward.
You may well be at the right stage, in which case great.
Also, it is irrelevant what others are doing.
Remember it is the "strategy + YOU + timing" that equals the results.
Other people are at different TIMING stages and are not YOU. Diligence should be as much about timing and YOU as it should be other people and strategy.
What stage are you at? Have you made any mistake by skipping steps in the past?!..... Let us know.......