Just Do It! February 2010

How to choose the right investment strategy for YOU. Mortgage Calculator

Let’s get right down to business this time and make some constructive decisions.  Lots of questions, but what comes out of this is a way forward that you know you will take.

This month we are going to explore how you can choose a strategy that works for you and make it happen.

What are you trying to achieve?

•    Enough income to replace your current income
•    An extra £1,000 per month would be great
•    Cash-flow of £200 gross from each property
•    Cash-flow of £500 plus from each property
•    Easy property that doesn’t need any work
•    Property that needs general tidy up
•    Property that needs complete renovation – kitchen, bathroom etc.
•    Pension replacement income
•    A different lifestyle – income to allow you a few luxuries
•    The option to retire early

You’ll think of many more, and I’m asking so that you will then have a solid reason for making the investments, and have a clearer view of the type of property that will help you achieve this.

If you were going to make a difference to your life over the next 6 to 12 months what would help you do that?  Would an extra £1,000 per month on top of your wages help?  Perhaps it doesn’t matter about the income, as long as you change your job.  Do the kids want to pursue expensive hobbies which cost £100 per month, or more?  Would you like to be able to fund that Gym membership?

Why are you trying to achieve this?

If you can’t answer this simple question – ‘why?’ then the goal is probably not motivating enough for you.  The main reason we don’t ‘Just Do It’ is that we are not challenged or interested enough in what we are trying to achieve.  We constantly try to block our own progress either because of a fear of failure or a fear of success.  Yes, would you believe that a significant proportion of us stop that success subconsciously.

What is your financial situation? – be honest with yourself.

•    Significant equity in your own home
•    No equity in your own home
•    Savings of £50k or more
•    Savings – max £20k
•    Somewhere in between
•    Absolutely no money to invest
•    Able to get a mortgage based on income over £25k
•    Self-certificated income so mortgage is more of a challenge
•    No savings, no possibility of a mortgage

The biggest difference for people in the strategy they choose to pursue is their current financial situation.  Whichever situation you are in then you will need other people to help you and finding them can be your greatest achievement to date.

Time and Experience

•    Are you time rich and cash poor?
•    Are you cash rich and time poor?
•    Do you have lots of experience?
•    Are you just starting out?
•    Are you working full time?
•    How flexible is your working week?
•    Are you able to keep an eye on the deal provider’s messages?
•    Do you know how to do the due diligence quickly?

Have you been investing in property for years and now you’ve run out of funds, or are you just starting out and need other people’s trained eye to find you the property you require?

Find people you can team up with, even if it’s to encourage you to keep going.  You will find all the knowledge you need on this site and there are many others to look at if you are researching a particular strategy.

If you don’t know, or you don’t have time – find someone who does.

We’re not very good at delegating generally, but the better you can get at this then the more you will be able to leverage other people’s time, experience and money (and we’re all after ways to use other people’s money).

Personality

Personality plays a big factor in the way we choose to invest and even the way we dream our goals.  You need to get familiar with your own personality, make friends with it and realise your strengths and limitations.

Come and hear me speak at one of the networking events to find out more specifically about your personality and how it affects the way you choose to invest. www.YvonneEmeryCoaching.co.uk/events

The more reserved you are the more likely you are to choose an anonymous way of investing – getting others to do the deal making and negotiating with motivated sellers.  This might cost more money but will save you the stress of following up leads generated by flyers.  You might be enticed by the easiness of communicating by flyer and web advertising, but you will find yourself hesitating because you have no way of dealing with the calls this might generate.

Those who have more extrovert personalities, will be great at having the conversation with the motivated seller, putting them at ease and building rapport, but you might struggle with the dedication required for leafleting your area.  You might also be happy to chat but worry about having enough information to be able to explain the detail to the seller.

In reality we all need other people to have input into our system, whichever we choose, so that we can use our skills to best advantage and fill the gaps with other people’s input.

What are the strategies that suit you?

•    Buying deals provided by Below Market Value sourcing companies
•    Leafleting to find your own leads for distressed/motivated sellers
•    Picking one area and one type of property and repeating a system
•    Buying deals across the UK as long as the cash-flow is good
•    Buy, renovate and sell (works best in a growing market)
•    Buy low and re-mortgage to release the cash
•    Buy no money down
•    Purchase Options, Lease Options, Sandwich Options (no mortgage required)
•    Joint ventures

You can find information on all of these on the mentor sections of Just Do Property.

Most people wouldn’t get out of bed for an extra £200 per month.

Remember that for each property that cash-flows at £200 per month, that’s £2,400 per annum and £24,000 over 10 years.

£200 is not just for Christmas, but it’s for the rest of your life.

When will you start?

I have introduced my MINI Groups for 3 to 6 people to set strategies and buy property regularly.  Just £100 per person for a 3 hour session in a town near you.  Call 01733 689567 to learn more.

Happy investing
Yvonne

If you would like to discuss personal coaching/mentoring with Yvonne then as a Just Do It member you can get 20% off.  Phone Yvonne: 01733 689567 she can help you leap over your barriers.

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