Property Investment – Life isn’t about DIY!

Property Achievement Groups | Life isn’t about DIY!

The oven was on, one meal for the adults, another for the kids.  The phone was ringing and then the mobile started too.  I’m trying to unravel the yo-yo for my little boy and put the clothes back on a doll for my little girl.  Then the doorbell goes! Time to delegate!

And suddenly a blinding flash of the obvious! I can’t do all this myself.

The same is true of property investment and building a business from property income, so which bits are you good at?

  • Are you great at meeting people and talking to them but not so good at following up leads and doing the paperwork?
  • Are you good at all the admin but meeting people to talk about a deal freaks you out?
  • Perhaps you enjoy meeting motivated sellers, but when you have the information you have no idea how to put the deal together.
  • What if you can make a deal out of anything, but you don’t have the IT skills to generate your own leads.

There are many ways to make money from property and you don’t even have to have your own portfolio.

If you are challenged with no deposit and little chance of getting a mortgage you can you still make money from property?  If you have the money but no time to go out sourcing deals can you still builfd a portfolio?

Yes you can, and you don’t have to do it all yourself.

The essential elements of building a portfolio are:

  1. Finding motivated sellers / generating leads
  2. Doing the due diligence on the property
  3. Visiting the property and meeting the seller
  4. Asking the right questions to find out more about their situation
  5. Working out if it’s a deal or no deal
  6. Following up later if the seller isn’t ready
  7. Engaging with brokers, solicitors and finance organisations
  8. Making sure the deal goes through
  9. Making sure there are tenants for the property
  10. Making sure all the renovation work is carried out properly
  11. Making sure all the legal requirements are in place
  12. Checking tenant’s references or credentials
  13. Collecting payments
  14. Renewing contracts when they come up for renewal
  15. Filing tax returns and producing accounts
  16. Passing on to other investors the deals that don’t work for you

The list could go on, and I’m sure you could add to this.

Which ones of these do you feel comfortable with – put a big tick against them.

Which ones make you feel nervous or uncomfortable – put a big cross against them.

Some might not fall into either category, but they are not a definite Yes, so you might want to consider delegating these too.

When you have your list then you need to get others you could work with to do the same and see where their skills complement your own. You’ll need to understand where your limitations are and work on finding others who can support you in this bid for a property business.

Challenges can make it simple

If you are unable to get a mortgage at the moment and have no spare cash to buy a deal then you are going to be forced to find some Lease Option deals (these are still going to cost you £2000 in fees) or you’re going to have to find leads for other people.  You can sell leads, or if you get really good at the process you can source property and sell this on to other investors through the large companies who have big databases of investors waiting to buy property.

This way, you are doing the groundwork for other investors who are either unable or unwilling to do this part of the process.

Just suppose you were working full time and you wanted to invest.  You would be able to get a mortgage, you might well have £5k to buy a deal, but where are you going to get the time to find the deals except for working during the hours you previously had free.

If you are not working full time and therefore can go in search of property deals during the day either by internet lead generation or leafleting then you can be the support person for those who don’t have the time.

So, are you great at IT, but not so good with meeting the sellers?

Are you great at meeting with people, but not so good at IT?

What a great combination.

The IT expert can help generate leads, the person who’s good with people can negotiate the deal and together these deals get sold to investors.  Everyone is happy and more importantly everyone gets paid.  This is how we make money in the property business.

Often our focus is on how many properties we have, rather than how property can work for us.

Even if you are building your portfolio then not all the properties you come across are for you.  What are you doing with the deals you come up with that don’t fit with your strategy?  Make sure you have a system in place to pass them on to other investors.

If you are leafleting, then how are you able to take all the calls that come in?  Do you need to set up a system where you get someone else to take an initial call to gather the most important details?  This allows you to do the due diligence before calling the seller back.

Create Opportunities

What is the part that you like to do? – you may as well enjoy your investing.

Do you love to get the spreadsheets out and work out the yields?

Do you love to go round other people’s houses and imagine what you can turn them into?

Do you just love to do the wheeler dealer negotiation part?

It might come as a surprise, but it’ll be the best thing you ever learn – that the things you like and think are fun, most other people don’t.  You might assume that everyone is like you, but that simply isn’t true and we often forget this important point.

Go back to the list. What would you like to do?  Who do you know who enjoys the other parts? Why not work out how you can work together and do not just double the business but exponentially more business than you would do on your own, because often on our own we simply don’t do anything because the whole is much too much for one person.

Work together this month to produce a well oiled property machine that brings you cash month on month.  Don’t put it off any longer – Life is not about DIY.

Join the Property Achievement Group in Birmingham – starts February 2010 http://www.yvonneemerycoaching.co.uk/propertyachievementgroups/

Happy investing

Yvonne

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