Successful property investors are not an enigma; the traits that make them successful can be replicated and used by people new to property investment. In this blog we look at the laws that dictate their success.
Have a plan
Successful property investors do not build a portfolio by randomly selecting property investments, they have a clear plan and they meticulously stick to it. Their plan of course has been formed with a specific financial goal in mind – without a goal you can’t begin to plan. Those who invest with no goal or plan will never be as successful as those who do. Investors with no plan will be more prone to mistakes and will subsequently suffer financial losses.
Take Away: Before you start make sure you have a plan and a financial goal in mind
Buy below market value
You can invest in a property for below its market value, yet it’s amazing how many investors fail to take advantage of one of the biggest benefits in property investment. Successful investors always buy below market value. Only lazy, amateur or accidental investors will walk into an estate agent and pay near asking price. Not only does buying below market value make sense in the short term but the equity you acquire can help you accelerate your medium to long term success.
Takeaway: Research ways to buy below market value, some options include auctions, networking or working with a company like Rescue my Pension.
Do your research
Successful property investors will never rush into a deal without carrying out research. If there are time pressures, the successful property investor will pour a coffee and work late into the night because any mistakes could hit them financially. Fortunately in this day and age you can carry out extensive research from the comfort of your own home. There are many websites that can assist you to make detailed inquiries, from the Land Registry to Rightmove.
Ignore the media
Only new or inexperienced investors make investment decisions based on the media doom merchants. There will always be something negative happening in the world. You will, if you look for it, find negative economic data. However, successful property investors aren’t distracted by the media as they don’t invest with the short term in mind. Successful investors invest for the long term and they know that short term influences will have little effect on their portfolio.
Protect your cash flow
Cash flow is king in property investment and successful property investors never forget it. You can have the world’s most attractive portfolio but if you neglect your cash flow you can lose the lot. Your cash flow can be easily managed especially when your portfolio is small; the key is not to take big risks where your cash flow could be drained.
Takeaway: Always put together a full cash flow forecast when assessing an investment.
How can Rescue my Pension help?
- We work with our clients to enable them set financial goals and put together a plan.
- All the investments we recommend to our investors are below market value.
- We supply all of our investors with a due diligence pack called the Big Report.
- All investors get to review a full cash flow on every investment we present.
If you would like to discuss or take advantage of any of the above benefits above you can call us on 0207 148 3164 or sign up for one of our investment guides below.