If you are a novice property investor looking for information on investment properties for beginners, this article should help make your life easier. It details eight tips that will help you in your quest to become a landlord.
- Don’t believe the hype. It doesn’t matter if it is negative or positive hype about investing in property; do not take anything at face value. Always consider whether the person or media that is putting out the story might have ulterior motives. Anyone interesting in selling you property or property products will only talk about the positives and the value of investing in property. The media likes to sensationalise the negatives, because that is what sells newspapers. You have to look at the evidence and seek impartial advice and make up your own mind.
- You have to believe. You have to have a belief that you can make money from property. At times it can seem as though the property investing World is already saturated with people more experienced than you. You have to believe that there is room for you as well. If you start off with negative self belief then you are on a slippery slope to failure and before you know it you will be another one of those that have “tried” property investing, but found that there was no money in it.
- Decide why you want to invest and formulate a strategy around this reason. Being clear why you want to invest in property can create compelling reasons that will push you forward towards your goals, even when things are not going well. Once you know why you are investing you can then build a clear strategy based around what your goals and aims are.
- Research and make sure the figures add up. Don’t just dive into investing in a location because you have heard a rumour on a forum that it “might” be the next property hot spot. You need to do your research and your own due diligence. It will be hard work to begin with and it might take you several months to find the right location and the right type of property, but after that you can probably continue to invest in the same location for several years, so the initial hard work is well worth it and should pay off in the end.
- It’s a numbers game. You have to be prepared to look at hundreds of properties to find a deal that meets your criteria and that corresponds with the strategy you have set out. This doesn’t necessarily mean making hundreds of phone calls a month to different estate agents or vendors. You might achieve your goal by simply browsing the local newspaper which normally has at least a couple of hundred properties in, although a more proactive method is usually needed to be really successfully.
- Have effective exit strategies in place. One of the main reasons many beginners fail in their efforts to become professional property investors or developers, is that they don’t have exit strategies in place. You need to know what route you are going to take to get out of a deal if things do not go according to plan. You also need to have an idea of how you are going to off load the property in the long run, if you don’t plan to hold onto it forever.
- Take a long term view. Successful property investors take a long term view of the property market. Many of the budding investors that have failed, have failed because they wanted to make a quick buck. If you are serious about learning how to become a landlord and being financially independent, then you have to take a long term view. This will help minimise your risk and will stop you from wanting to bail out if the property market goes through a bad patch.
- Be careful of using property investment companies. There are a host of companies that claim to be able to buy investment properties for beginners, so that novices don’t have to do any of the work themselves. Some of these companies are good, many are terrible and a few are crooks. I would advise you to learn the basics about what equates to a good property investment first, before you trust others to buy investment property for you. That way you can access the properties that they put in front of you and you will be able to tell if they are good or not, without being totally reliant on what the investment companies tell you.
If you are a beginner to making money from property, then by following the tips laid out here, you should be more equipped to go out and start hunting for those bargain properties. Keep in mind that people progress at different speeds and don’t get caught up in the thought that if you don’t become a millionaire in one month through property, then it’s not going to happen.
Find your own pace. However, make sure that you are also pushing yourself and forcing yourself to get out of your comfort zone because this is where the real growth, learning and wealth happens.**Nothing on this website should be confused with financial or legal advice. If you need this, or any other type of advice, please seek the help of a competent professional. In addition, because real estate laws change all the time and differ from state to state, and even city to city in the same state, everything in these pages should be considered general marketing advice and ideas. Please see link to full Disclaimer at the bottom of this page.