Things I Wish I Knew as a Property Newbie

Things I Wish I Knew as a Property Newbie

Even though I have been investing in property since 1994…I still have many things to learn. Actually always learning…but sometimes like today in this lovely weather, I take a step back and think of things I wish I knew as a Property Newbie & want to share.

Curious to hear feedback….

1. Realize building a team and relationships. You can not do it by yourself. I tried at first refurbishing…lending money…you name it…all by myself. I learned slowly to delegate and use other investors money.
2. I learned that I could make more money by making less money. What does that mean? I started a bridging company and within 6 months ran out of funds. Through my attorney I found investors. I ended up running a large pool of investor money. I made a very small percentage of the deal how the volume was huge. Myself and my JV partners are building that same strategy now with Professional HMOs
3. Are you an investor or an analyzer? It is much better to be an analyzer of deals. It is easy to be an investor. Being an investor does not mean you stand the chance to make money. By throwing money to deal does not mean it will work…do your homework. Being an analyzer of property helps you to tick all the boxes.
   

4. Realize it is very hard to know where the property market is going. I myself spend a fair amount of time worrying about if I should be buying, selling, waiting, or spending. None of us really knows. However if you buy right and plan to hold for a long time with very little leverage it simply does not matter. Adding one very important point is that you can rent and keep rented the property. An example of this 20/20 hindsight… In 2009, the property market was at or near its bottom. When people look back, they often say, “I wish I had bought back then. I would have made a killing. It’s just too late now, prices have already risen.” The problem with this is, back in 2009, everyone was saying the economy had collapsed and we were fools to buy! Think about this one…biggie to consider.
5. You can overcome lack of sufficient funds or resources. Everyone is worried if they have enough money. However if you have the right deal with margin, money seems to find you via JV partners. I have been lucky with JV partners….like in marriage there are many that do not work out. Know who you are getting in bed with first and always protect yourself by either owning the property yourself or your entity…or conversely putting a RX1 on the title…thus your interests are protected.
   

6. Finding a support system and group is very possible. My strongest suggestion is go to property meetups..Pin meetings…online groups…read …ask questions and learn. I do not think all those courses and mentors have reinvented the wheel. When I first started, I knew I did not know what I did not know. I JV with a leader of local property meet. We did all kinds of deals together. We both made very nice money. I funded one of his blocks of flats at one point and another we split to buy a large piece of land that was being repossessed. I learned and made money. The same I can say with Professional HMOs. I use builders who have alot of experience and knowledge of Professional HMOs. We work as a nice team and they even have an assistant who is helping us to rent our rooms. Bottom line is network…try to find honest and hard working people….