3 Top Tips For Succeeding In Property Investing
From my personal experience of property investing. Here are my 3 useful, valuable tips for success in property investing:
1.Know your area well
This is fundamental to succeeding in property …. but it’s also one of the easiest to do.
Wherever you are investing get to know what sort of properties are there, what sort of people live there (or want to) and what local employers are there. Get to know what the local amenities are like – especially local schools and transport, and where there are any popular hot spots and those less popular hot spots. Get to know how active the market is for both sales and rental. What type of property are in demand, as well as understanding typical sales and rental values for a good property in a good location.
1. Build a strong network
I was always taught (and I believe it to be true!) that your net worth is the size of your network! So it follows …. the bigger your network the bigger your net worth!
Get to know as many people as possible; who are involved in your sector, have an interest in what you do, may be in a position to help you. These people might be estate agents, letting agents, surveyors, architects, builders, plumbers and planners – whatever is relevant to your investment strategy. Even when you have been doing something for a long time, there are often situations that come up that you haven’t personally had to deal with before, and having a range of contacts and people that you can call upon to help you with the unexpected will be invaluable.
It is important to build a strong team around you, who you can work closely with and rely upon. Be sure to have a few ‘back ups’ though, in case your preferred builder (or whoever) is busy or lets you down.
2. Learn how to add value
First, you can add value by looking for the right types of projects. For example, a renovation or an extension that makes your property worth more than the cost of the work. Secondly, you could look to reconfigure the space by adding an extra bedroom without necessarily increasing the existing footprint of the property.
3. Know when to pass opportunities on
Recognise that not every type of project will work for you. So if a project comes along and it doesn’t work for you then see if you could pass it on to another investor.
Let’s say, for example, you find a property that needs a lot more work and money than you expected. Look at how you could pass it on for a small fee to another investor who is looking for just that kind of project. Moving it on might not make you the large profit you were planning, but it can still make you a small return for the work you have already put into finding the property in the first place.