HOW CAN I START?
The thought of becoming a property investor can be exciting, nerve-wracking and daunting all at once. The reality is that with the proper help, guidance, and support, you can become a successful property investor and be on your road to financial freedom.
Many of those whom I speak with who are interested in property investment have often watched Youtube videos, read books or been to some property events. I would suggest that this is a good way to get a basic understanding of property investing and the different strategies that are possible. The reality of property investing is great if you do things right, follow the rules and set achievable goals. I want to be able to provide as much practical advice as possible, so here is my 'How to Start: To-Do List'! This list is for those who are brand new to property investing and would like to start their journey towards financial freedom.
1. Read Books - Change your mindset!
Self-education and personal development are pivotal to your continued development and can help give a real base of understanding. Often people have a whole mindset-shift after reading or listening to certain books and it truly can change their life. Aim to read 5-10 books regarding property investing, mindset and business in general and it will change the way you think. Here are a few suggestions to help you start:
- Rich Dad Poor Dad by Robert Kiyosaki
- How to win friends and influence people by Dale Carnegie
- The Thank You Economy by Gary Vaynerchuk
2. Watch Youtube Videos
Youtube can be full of great, free information but don't take everything you hear as gospel, remember its a free, un-audited platform and some of the information you hear may not be 100% correct or the laws on your area/country may be different to the information given. However, it can be a good way to learn basic principles and strategies and watch other people's experiences.
3. Attend local property events and network
Local property events are worth their weight in gold and can offer you access to investors who are doing it in your area. Some of these events are free and will help build your network, which is deeply important. Check out the FREE property meetup that I run each month HERE.
4. Find a mentor or someone in a position that you want to be in
Having a mentor or being connected with people who are in a position that you aim to be in will accelerate your knowledge and opportunities. Offer to help them for free or simply ask for a chat and some advice!
5. Speak to a mortgage adviser who has experience dealing with property investors and ideally is a property investor also.
I am not blowing my own trumpet here as there are many people in this position! If you are using a mortgage adviser to deal with your finance, wouldn't it make sense that they invest also? This means that they understand what to look for and what deals would best fit in with your property investment goals.
6. Listen to property investing podcasts
Podcasts are a popular method of consuming content and can be a way to make your day more productive by listening when you travel, work or relax. You can find them on Spotify, Itunes and many other platforms. A couple that I would recommend are:
The Property Podcast by Property Hub
The Progressive Property Podcast by Progressive Property
7. Learn how to evaluate property deals
Learning to research and doing your due diligence is key when you are investing your personal money into an asset. Find properties listed on popular sites such as Rightmove, Zoopla, Purple Bricks, etc and practice calculating the financial figures such as yearly % profit yield or researching average rents in that area. Practicing this and learning from those who currently have properties will prove invaluable.
8. Don't make rushed decisions
Many aspiring property investors often watch some youtube videos, attend a training course or listen to advice from a friend and get extremely motivated and excited. This is great and can really give people the push they need to take the leap into investing. However, it can lead to individuals making rushed decisions without doing their full due diligence on a property, using a certain property strategy or the legality of certain arrangements. Always make sure that your due diligence is done and that you are making decisions based on figures, not emotions and you understand fully what you agreements you are making.
9. Start saving/earning for a deposit
It would be my prediction that a large percentage of the population would agree that investing in property is most likely a good idea and that if they had extra money they would consider it. However, the reality is many of those who would like to invest simply may not have enough money to start. Although there are ways in which you can get involved in property with very little or no money, nearly all strategies will need you to put money in. Saving as much money as you can alongside making extra money on the side will put you in a position to start investing. The longer that you do not save or do not earn extra money, the longer the wait will be for your first property.
10. Take professional advice from a tax accountant
Every individual has different financial circumstances, therefore it is impossible to give the same advice to everyone. Therefore, it is wise to discuss your situation and plans with a professional tax accountant about what your best course of action should. This advice could cover how to be most tax-efficient if you need to place the property in a registered business structure or specific advice regarding your personal finances.
Becoming involved in property investing is exciting - I hope that this to do list provides you with some real value that will help you to start your journey!