7 Steps to Recruiting Your Next Property

Often when we start something new we assume that we know nothing and have to start from the beginning, but that’s just our perception of the situation. Whatever we decide to do, we take with us the resources and experience of all the other areas of our lives.

Yvonne Emery CoachingMany successful business people who come to me for coaching presume that they don’t know how to succeed in property, but I know they do, and I’ll tell you how they know and how you know too.

Have you ever applied for a job? Perhaps you’ve even been involved in the process of recruiting staff into your team or business. Whichever way, you know how successful companies go about employing the best staff to help them to move towards their ultimate goals.

The secret to having a successful portfolio is to understand the process of recruiting property to work for you so that you can move towards your ultimate goal too. It sounds easy, and I’ll show you just how easy it can be.

  1. Assess what you want to achieve – set your vision and work out whether you want capital growth, cash back, cash flow, pension security or financial freedom. Look at the first year and consider what you want to achieve, and then write it down.
  2. Write the job specification – What characteristics, skills and attributes would you like your ‘candidates’ or houses to have. Perhaps you are good at renovation, so you might want your house or flat to be in disrepair. It might be that you want to buy at a specific percentage below market value – what is that percentage? Write yourself a detailed list of all the aspects that you are looking for both essential and preferable. Consider which locations are going to work, how easy they will be to rent or sell and what type of people they will attract?
  3. Every good company has more than one role, so it may be that you need to write two or three different specifications to meet all your requirements. It’s always a good idea to build your portfolio from several different types of property so that you are more easily able to ride out the storms of market changes.
  4. Now that you know the type of candidates that you want in your business you can start the process of recruiting suitable applicants. Whether you prefer to search the web, ask Estate Agents, get leads and deals from property clubs or use your local contacts, both you and they know which properties will work successfully for you.
  5. When you have narrowed the field down to appropriate properties you can check them rigorously against your specifications and you will know very quickly if they are worth interviewing or not. You will also know your best sources.
  6. When you interview each property you will be looking to match the job specification again, and this time you will get a feel for the advantages that a property can provide for you. There may be extra features that the agent has failed to mention, both positive and negative, and that will help you to narrow the field even further.
  7. Finally, you will know by now which properties you will want to make an offer on. You will also know the return you will get for each property if your offer is accepted. As with all businesses the fit needs to be good for you, and that is why you will pass over some, and yet other people will invest in them. If you are clear on what you want to offer, and how that property can help your portfolio then you are far more likely to make appropriate offers and not waste time chasing ‘interesting’ deals because you know absolutely whether or not a particular property fits in your portfolio.

As you repeat this method of recruiting houses you will find that each time the process becomes easier, more successful and you will find yourself working smarter rather than harder.

The benefits to you are that you understand why you need to buy the next property, for which role you are recruiting it, and what your returns will be.

Whatever the market is doing, you are still in control of the properties you are purchasing as you know the outcome you will get from each one.

The consequences of not having specific criteria for each purchase is that you end up with a real motley crew of properties and you’ll have no idea what they are providing for you.

To make a real success of property investing you will need to find your system of recruitment and refine the process so that you recruit the right property each time.