5 Habits of Super-Successful Property Investors

23 February 2018

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5 Habits of Super-Successful Property Investors

The world of joint ventures, property management and wholesaling is an attractive prospect.

Good old bricks and mortar is often promoted as the best of assets to invest in, for the simple reason that it’s something that we all need.

But it takes a little savvy to actually make a success in a highly competitive arena. It’s about having the business know-how, not just the idea and the funds.

Here’s how the pros do it.

1. Create a Business Plan

You need to treat your property investment like a business. By visualising the bigger picture and setting short- and long-term goals, you’ll become more focused and limit any setbacks.

A solid business plan will include budgeting, objectives, timelines and profit expectations. In the long-run a polished business plan can be used to source funding or additional investors. It gives confidence that you know what you’re doing and you have a strategy.

Check out this post by PropertyPro for top-notch advice on creating an all-singing, all-dancing business proposal, that will put you a cut above the rest.

2. Get Market Knowledge

Like any business, you need to understand the market you’re operating in – property investment is no different.

Keep in the know about current trends, mortgage rates, spending habits and the general economic state. This way, you can always make decisions based on actual knowledge and predicting trends and you can create opportunities based on fact.

The important rule is to get your basic knowledge and then stay up to speed. It’s a fast-paced business, so keeping on your toes is key.

Visit The Property Hub  for a ton of news and advice for property investors.

3. Develop a Niche

Spreading yourself too thinly is not the way to success. You could very quickly become a Jack of all trades (and master of none).

1. First-Time Buyers

Some property investors find it suits them to sell to first-time buyers as, typically, they’re in more of a hurry to get going and the process is quicker. It’s also great if you’re a strong communicator and would get satisfaction from seeing someone settle into their first home. The downside is you might have to educate them a bit more about the buying process.

2. Rental

The big draw for buying properties then renting them out can be summed up in two words: passive income. Your one main job is to make sure your tenants are happy at all times, so choose the property wisely.

Consider if you would oversee the property on your own, or would you employ the expertise of a Property Manager? Would you prefer a single family, or would multiple tenants in flats be more up your street? Be strategic and think of the full picture – it could be an excellent source of long-term income.

3. Renovating

This is a simple concept on the face of it; find a property that needs work, do it up, sell it on for a profit. However, you need to be willing to get your hands dirty and assemble a team to help you. The real deal-breaker here is you have to have an eye for property. You need the knowledge to look at a run-down or ‘grubby’ property and accurately assess its potential.

4. Build a Network

Successful property developers always have an effective network of companies and influential people at their fingertips. Not only can this provide important support and advice, but unexpected opportunities can arise from knowing the right people.

So much of property development is gained through experiential learning so if you can find a well-chosen mentor, like-minded companies and individuals and clients (who are likely to encourage referrals), you’ll have a strong platform for success.

5. Understand Risks

If you were investing in a different industry, say the stock market for example, your progress would be peppered with warning after warning and every move you made would be based on risk assessment. For a property developer you’re likely to see adverts everywhere stating how easy it is to get into property development. You’ll see success stories in the media and sometimes, through friends, tales of overnight wealth.

Don’t get sucked in.

Understand the risks involved. Educate yourself and you’ll be in a prime position. Property investment could be the best venture you ever make, as long as you adequately prepare yourself. It’s a challenging business requiring expertise, focus and planning – make sure you keep these 5 habits in mind and you’ll prosper.

Happy investing!

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