In this article we will share with you the top 5 ‘Golden Rules’ for successful property investing from our guest writer from Your Property Why, Hazel De Kloe.
Top 5 ‘Golden Rules’
1. Know and understand why you are investing
Ask yourself, ‘what is the end objective’ in my property investing endeavours? Is it that you want to supplement your retirement income or do you want to create chunks of capital now? Do you want to replace your salary, or are you happy to supplement your current earned income in order to give you more lifestyle choices? I truly believe this to be the most critical element to your success. I urge you to explore this, as your initial reason and motivation may not be the real reason behind wanting to invest.
2. Get educated – properly!
A little bit of information is a dangerous thing in this industry. When you are talking about tens, if not hundreds of thousands of pounds, making a decision based on sketchy or plain bad information can work powerfully against you. If you are serious about building your property business, the right knowledge is key. There are many portals for you to explore in this respect. Find someone you can trust who has achieved what you’d like to achieve and learn directly from them.
3. Property is a people business
Property investment is a people business – 90% people, 10% property! If you think about it, every step along the process of purchasing, refurbishing, selling or letting and managing a property involves...people! Focus on how best you can help people in this business and you will experience true success. 4. Do your due diligence and research before buying
This is an absolute must. Regardless of where the deal is coming from, you must perform your own research and due diligence before committing to buy any property. I have come across so many people over the years who have blindly trusted other people’s judgement and ended up with a ‘lemon’ of a deal. If you don’t understand what you’re getting into, don’t do it!
5. Treat it like a business
This point includes many elements, from understanding the reason behind the purchase of each property, overestimating costs and underestimating values, buying wholesale and selling/refinancing for retail, knowing your numbers thoroughly to protecting the downside by having a minimum of two exit strategies for each purchase you make. These all constitute running a good portfolio business and are crucial to your success.
If you have liked the ideas mentioned here, you can download your complimentary copy of my full eReport ‘Golden Rules for Successful Property Investment – An Investor’s Essential Guide’ on my website www.yourpropertywhy.co.uk
. This report is a collation of many of my own personal experiences as well as the knowledge I have gained from working with countless others.
Feel free to post your own ‘Golden Rules’ below and watch out for next month’s ‘Top 5 Costliest Mistakes’ article.
Enjoy the read!
Hazel de Kloe – Your Property Why
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