Property investors have to start somewhere and anything that you haven’t done before probably qualifies as being in your ‘Scary Box’!
It’s triggered by fear of the unknown – a bit like sitting in the driving seat of a high performance F1 car on a race track, when you’ve only ever driven a family saloon before.
Even if you’ve gone through the process of applying for and maintaining a mortgage for your own residence, getting your first buy-to-let (BTL) mortgage can be scary. Especially if you don’t immediately have tenants ready to pay a regular rent to cover that big monthly outgoing.
All kinds of doubts go through your head ‘What if …’
You get what you expect – so if you keep focusing on negative outcomes, guess what – that’s what you’ll attract.
Focus on the benefits of being a property investor. Know that if you do your due diligence you will set the rent at a reasonable, but profitable level. If tenants are a worry, register with a letting agent who guarantees your rent (as long as it doesn’t wipe out your profit!)
There is always a way to solve your challenges.
Better still there are better ways to finance your property investments than BTL mortgages – it’s called bridging finance, but this definitely lives in most people’s Scary Box. It’s all to do with getting familiar with how it works AND the real benefits of using it. After all it’s got to be worth it.
If you’re scared of going on a motorway, getting in an F1 race car probably isn’t going to motivate you. However, if you are exploring property investment then you’re motivated to make a success of it.
Take a look at this progression. When it comes to funding investments where are you on the scale?
If you think the only means of financing your property investment is BTL mortgages or cash – you’re still at the beginning of the progression – and ready to move on.
Learning how to use bridging finance is just like being in the driving seat of that F1 car, you just need some tuition and practice (OK, for F1 probably a lot of practice)!
To become a Ninja Property Investor you need to step out of the mind-set that is focused on getting mortgages on your properties and start thinking in terms of cash purchases.
Bridging finance isn’t as tough to get as most people think and the costs of the loan are more than covered in the returns on your investments that are simply not possible with mortgageable properties.
Now you know it’s possible, you’ve already opened the Scary Box and can see that it’s not such a scary thing and will launch you on a more profitable career in property investment.