It's an exciting feeling, isn't it? The prospect of getting into property and building a healthy income is enough to whet anyone's appetite for this business! Especially as it is portrayed as relatively straightforward to start...or is it?
It may be that you are completely new to the world of property, or perhaps you've just started and have one or two properties under your belt. In fact, wherever you're at, it is no mean feat to enter into and build up a successful property business.
Regardless of the size of portfolio you intend to put together (you may want to buy just one property or maybe you have the idea of ending up with twenty or one hundred!), there are certain guidelines you will need to follow to ensure your chances of success. With the majority of businesses (including building a property portfolio) failing within just the first year of launching, isn't it a good idea to give yourself the best possible start?
Having spent the last 14 years building our property portfolio, there are a few things I've learnt along the way. Out of those last 14 years, I have also spent 7 of them educating others' how to build their own portfolios. I have discovered there are some important stages you need to master to massively increase your chances. They can easily be broken down into three main categories:
All too often, I see people who have been 'whipped' into an excited frenzy about getting into property, only to come crashing down when they realise just how much is involved to 'get it right'. They often become disheartened when they are perhaps not taken seriously by the agents or cannot find that 'elusive first deal'. My approach is to lay down the right foundations, keep a level head and to build on this as you go along.
As we all know, having the right mindset is vital to seeing you through the ups and downs in your business endeavours and enable you to have the sticking power needed to find your way around and through any obstacles you come across. Having clarity about what you want to achieve, how you're going to achieve it and why you're doing it in the first place will catapult your chances of success in this industry.
Property is one of the most money-intensive businesses you can get into. Whether you are working with your own funds, and/or those of someone else (including banks, JV partners, bridging finance companies, etc), you MUST be certain of what you are doing. It is therefore crucial that you are aware about what your thoughts
are towards it. You may have heard the saying 'what you think about, comes about'.
So many of us have a 'fear-based' attitude towards money (i.e. not wanting to lose it, scared about whether we can make it work, having a 'not enough' mentality) which can really hamper your ability to work with money and indeed make
money. Understanding what your core beliefs are about money will at least provide you with the answers about how to mitigate any risks when handling your finances.
Remember, your ability to raise
money as well as manage
money will determine your level of accomplishment. Isn't it worthwhile then to take some time to scrutinise your feelings and thoughts about it? Chances are, if you are not yet making (much) money from property, there is likely to be a latent belief around money which may be stopping you from making progress.
Your ability to manage multiple activities within this business will also be a major factor to your progress. Not only will you need to manage your finances and properties efficiently and effectively, but also the multiple roles which you as a property investor and landlord will need to be proficient at. As your business grows, you will need to be able to build your team and learn to manage other people, which, as we all know, can be a whole other challenge!
Possibly the most important person to learn how to manage, however, is yourself. For me, property has been more a journey of self-discovery and personal growth than anything else. If you are able to master your own inner workings as well as react positively to any situation which comes your way, you will be building your portfolio from a great standpoint.
In essence, your property business will grow as you do. Having been in business now for a number of years, I've come to realise 'you don't go
into business, you grow
As a useful guide to help you along the way, I have put together a special new free report entitled 'What To Know Before You Buy Your Next Investment Property'. If you would like to get hold of a copy with my compliments, please feel free to contact me below:
t 01303 766455
To your property success. :-)
Hazel de Kloe
Property Investor | Property Coach and Mentor | Speaker | Author