So you want to learn from our experience and minimise your chances of making the same mistakes?
This is a good plan and is exactly what we have done over the years, learning from some very successful property investors, coaches and mentors.
Property investment has the potential to provide you with the lifestyle you dream of, maybe giving up your day job, spending more time with family or taking more regular holidays…
It also has the potential to be very costly both financially and personally.
Investing in property is something we had wanted to do for a long time, but we had no idea where to start and we had very little capital to invest. This limited the action we took as we didn’t think we could get started with the limited resources and knowledge we had. We would read the odd book and have a look through Rightmove at properties we would buy if we had the money…. So herein lies lesson number 1
Do not allow limitations around time or money discourage you from making a start!
Years later once we had a reasonable pot of money to put in as a deposit, we started to do more research and became aware of the various courses and networking meetings that take place around the country. We realised that if we were going to speed up our results, we were going to have to broaden our knowledge. Another difficult decision because courses are expensive and we wouldn’t then have funds to purchase any property! …. lesson number 2
You can achieve far more by increasing your knowledge and working with others than you can doing it alone!
Once we had started educating ourselves and building up a network of like-minded people who we could potentially work with, we needed to decide on a strategy.
In the beginning we only knew about putting a 25% deposit into a small house and renting it out as a family home.
We then became aware of: –
- Student Lets
- Title splitting
- Lease Options
- Purchase Lease Options
- etc. etc.
….. all of which seemed like great strategies, so we spent months switching from one strategy to the next and back again…. lesson number 3
Have a clear goal and focus on a single strategy!
With all this now in place, we had to find a suitable deal and actually buy a property. This was quite daunting as we had never bought a property before, including our own home as we were still renting.
We were confident in our strategy, confident in our ability to work with others but conscious of finding the “perfect deal” and nervous of actually putting in an offer. It wasn’t until we started working with our mentor that we took action and did it.
We spent over 8 months refining our strategy and ‘getting ready’ to purchase something….or procrastinating as some call it.
Within 48 hours of having a mentor, we had put in an offer and had it accepted!…. lesson number 4
Do not under estimate the power of having a coach and/or mentor to guide you and hold you accountable – we had the benefit of this in the beginning and have continued to work with a business coach ever since.
The above process took us many years to go from having a keen interest in property and reading a few books to actually getting educated and coached through our first purchase. But even so, we were able to minimise the risk of losing our capital by making mistakes and our first deal was quite different to what it would have been had we done things the way we originally planned.
Our initial plan was to purchase a property needing repairs so that we could increase it’s value and then rent it out or sell it. This would have required an investment of around £40,000 for the deposit and refurbishment and would have generated around £200-300 per month if we were able to get a good mortgage product.
Instead, we bought a 7-bed HMO which we refurbished and rented out. We only put £10,000 of our own money into the deal and we created £70,000 of equity through the refurbishment. It now generates a monthly profit of around £1,000 every month.
There is no way we would have done a deal like this without taking the steps above, but the one thing we would do differently?
We would have started working with a coach from day one.
We realised soon after we started working with our coach and mentor that we could have done all of the preceding steps much quicker and at less cost. Having the benefit of someone else’s experience and them holding you accountable for the actions you know you need to take is invaluable.
Hopefully the above has given you some insight into how our journey started and maybe you’ll think differently about your own journey, or maybe it’s given you the inspiration to take the first step.
If there are any areas of your property investment you feel we may be able to assist you with then please do not hesitate to get in touch!