Buying property? Theoretically speaking, the process of buying property need not be difficult at all. Unfortunately for all means and purposes, investing in property, buying below market value property and making sound investments as a “property investment business" appears to be, however, a daunting task.
Be careful! There are seven mistakes that YOU, as a property investor, can make that can ruin your business:
- The absence of strategy A key step in any investment process is formulating an effective strategy. Having a proper property investment strategy is something that cannot be overlooked. From the information printed on your business card to organizing your time effectively and deciding who to connect with, everything needs to be planned. Next on the list should be setting up the action plan needed to execute the strategy.
- Too much analysis Are you one of those people who spends a long time analyzing below market value property deals and are too scared to take the next step. What could be missing is simply confidence. You need to know that unless you ACT, you will never learn. After all, it is the mistakes that teach you life's biggest lessons.
- Not following the strategy If you want to avoid wastage of precious time, money and energy, it would do well to stay with your property investment strategy, once it is well defined. If you don't stick to the plan, you might get tempted by a deal that sounds too good to be true. While the deal may really be good, it is necessary to identify whether it is the right below-market value property deal for you. Take your strategy as a reference point and keep questioning whether your deal/action is in-line with it.
- Looking to get rich quick Property investment is not a short-term commitment. Although it is possible to earn quick money, if you are lucky or have the right contacts, this does not happen to often.
- The wrong focus You, as a property investor, can be tempted to occupy yourself with various types of activities to kick start your bmv property business. While this might give you a feeling that you are acting, this is usually far from the truth. What you need to do is get going, consider deals, talk to vendors and move. For example, you need not keep an accountant or open a bank account unless you begin to get a feel that you have a feasible business at hand. Conduct a few deals and see if a property investment business is the right choice for you and then plan other details.
- The marketing mania As a property investor, make sure you don't get stuck spending months printing leaflets, advertising and slogging out at the offices of various agents. While all this can give excellent results and might be required to grow your business, what is more important is learning the basics of the trade - assessing leads and turning them into deals, also called “buying leads. " The crux is finding a seller who is motivated. This is something that can happen on Day One of your business. Later you can be in a position to choose which motivated sellers to conduct business with, instead of just whatever comes to you.
- Giving up Everything in life needs hard work, consistent effort and most importantly patience. The property investment business has its own risks. But if you truly believe that this is the business for you, don't give up without giving it your 100%. Identify bottlenecks. See if you can find a joint venture partner to work with or outsource part/s of activities. Just don't give up easily.
Robert Clark is the owner and founder of Rapid Property Investment, a company which helps property investors to find Below Market Value properties in the UK.
You can find for a complete list of their current property investment bargains at http://www.RapidPropertyInvestment.com
Robert is also a contributor to Property Investment Tips.co.uk a popular property investment blog which features news, interviews and articles designed to help you to make more money from your property investment business.
Property Investment Tips.co.uk is a great source of free information for new and experienced property investors alike. http://www.PropertyInvestmentTips.co.uk/