7 Keys to becoming a Successful Property Investor
#1 – Write down your Goals and Dreams
Why do you want to invest in property? Is it to build secure assets for your retirement, buy all the things you want, enjoy more time with your family/friends or to quit your job and be financially free? Whatever it is, you must know what is it and desire it greatly. This is what will keep you going when times are tough.
If you want a nice car, go out and test drive one first. Go out and inspect your dream house, dream suburb – whatever works for you. This will give you the ultimate motivation to succeed. Like Paris Hilton says, “Fake it till you make it!”
Set realistic goals for yourself and break them down into what you want in 5 years, a year, and a month then daily. Successful Investors review their goals and dreams every day.
What happens when you achieve your goals and dreams? Set new ones and keep growing. Don’t stop until you’ve done all you can. We only get one chance to live our life so make the most of it.
#2 – Create a Plan
“People don’t plan to fail, they just fail to plan”- Napoleon Hill.
Think of your goals and dreams as your destination. So, how will you get there? You need a plan. Without this, you will get lost and fail to reach your destination on time.
What vehicle will you use to reach your destination? Cash investments, Shares, Business, Residential property, Commercial property…
There are many different strategies to invest in property. Build and hold; Build, renovate and sell; Negative gearing vs positive gearing; Options; Developments… to name a few.
How will you structure your finance and tax? Will you buy assets in your own name? What risk management strategies will you have in place? What is your exit strategy?
These are important and the more detail you have in your Investment plan then the more prepared you will be to reach your goals and dreams.
#3 – Have a Positive Mindset
Before you can even start investing in property, you must have the mindset of being a
Successful Property Investor.
Your thoughts determine how you feel and how you feel drives your behaviour. This then leads to the results you obtain in life.
Think about it – we all get negative thoughts that invade our heads (“the one telling you that you can’t do it”) and know people, whether intentional or not, that will crush your dreams and tell you it’s not possible because of their own beliefs.
You need to eliminate and stay away from these as much as possible. Stop thinking about ‘what if’ something bad happens or ‘what’ if you make a mistake.
“If you think you can, you can. If you think you can’t then you can’t.” – Confucius.
#4 – Know the Numbers
The difference between good debt and bad debt is that good debt is for appreciating assets, while bad debt is for depreciating assets. The key is to accumulate as much appreciating assets as possible and use the passive income to pay for your expenses.
Make sure you know how much you can comfortably borrow before making offers to buy on property. Each Lender has their own criteria but make sure you have paid down any bad debt, such as personal loans or credit cards because this will affect your borrowing capacity.
#5 – Good Research is Important
Don’t listen to the media – they only talk about headlines that sell. There is so much information available out there but you only want those based on fact.
Find a reliable source and use a system that suits your strategy then stick to it.
Understand the value of what you are buying, the area and demographics. Go out and inspect at least 100 properties in your price range so you know what to look for.
Don’t put all your eggs in one basket by focusing on only 1 suburb. Every city has their own property cycle and you need to be up-to-date on the trends.
You also need to know the purchasing costs, holding costs and most importantly, the return on investment! High rental yields build income cash flow, while capital growth builds wealth.
#6 – Build a Team
“Your network determines your net worth and you don’t have to be an expert in all the fields of investing or property!” Create a relationship with like-minded people who you feel can help you get to where you want to go and vice-versa. Learn from their mistakes to save yourself making the same.
You’ll definitely need experienced people that you can work with in property, finance, conveyancy and quantity surveying. Leverage off their skills and achieve your goals and dreams faster, rather than trying to do it all by yourself.
#7 – Take Action
“The key to Success is forming the habit of doing things that unsuccessful people don’t like to do.” – Albert Gray.
Find the information you need, talk to people in the industry, make property deals happen and get out there. There are lots of opportunities out there for you but they will not matter if you don’t take action!
This article is written exclusively for Landlord Specialists and authored by Jason Wong, Property Consultant at Empire Property Investors. Jason has built a property portfolio of his own in a short time frame and is mentored by CEO and Founder – Eric Trieu, who has 20 investment properties himself.
To find out how we can help you build a secure and rewarding property investment portfolio email us NOW! team@landlordspecialists.com.au
“All information contained in this article is of a general nature and no responsibility or liability can be given for any actions taken from the information provided.”