Successful property investment depends on knowing your stuff. Going on what someone else has suggested is like doing business in a new country without doing any research!
When it comes to funding your investment you need to understand what a good deal really looks like and where to get the funding that allows you to work your way.
When you discover a potential property to invest in, don’t skimp on your homework. Don’t guess, don’t take an agent’s word for it, do your own research, ask questions, find out what you need to know to be sure this really is a good investment.
The same applies to your sums in relation to the cost of refurbishment or conversion; don’t guess what a new kitchen will cost - work it out. Don’t estimate the price of installing an ensuite, find out.
Working out what the investment will cost - and how much you want to get out of it when it’s all done - is essential before you make an offer or apply for finance.
There’s a big difference between following the herd and following the experts. If you want to fast track your property investment you’ll need to learn about smart funding methods, specifically bridging finance. A BTL mortgage is not the answer, unless you don’t mind if it takes years to get to the point of being able to be a full-time investor. I call this Inspired Funding.
You’ll also need to develop skills that help you to get better deals. This includes knowing how to persuade vendors and agents that you’re the best buyer they’ve ever met. I call this Powerful Positioning.
Then you’ll need how to retain as much profit in your deals as possible - known as Maximum Return on Investment. No giving away your profit to partners unnecessarily.
Smart investors don’t trap their capital in a project, so knowing how to get your money out and on to the next project is an important lesson to learn. Fast Fluid Finance is just another tool in the smart investor’s toolkit.
The last thing - and probably the most important - is to develop a cash buyer’s mind-set. This let’s you look at potential deals in an entirely different way - and buy properties other investors can’t (or don’t know how to).
If you want to know more about these essentials take a look at the Ninja investor Programme.