I just spent the last few weeks touring Australia providing our unique brand of property investment education to investors looking to take their results to the next level.
I usually start these events by asking the audience the following question:
“What do you think you need to know to get better results in the property investing space?”
This tour we found there were quite a few people who were new to investing and wanted to know how to get started. So in this article, I want to explore getting started on the right foot in property investing in some detail.
No doubt, property investing is a skill — and like all skills, it improves with practice and experience. When we look back at our own investment journeys, Luke and I will freely admit that we really didn’t know what we were doing when we first started.
We jumped from one strategy to another. And between us we have probably done nearly every property strategy out there, from residential and commercial to industrial and off-the-plan; we bought in mining towns and did dozens of renovations, subdivisions and developments.
And like many people, at times I personally fell victim to listening to the wrong advice from the wrong people, causing me to lose both time and money. In my defence, they seemed to know what they were doing and clearly had more experience than I did.
So therein lies the problem: how do you actually get started on your investing journey when you really don’t know what to do? Who can you trust?
Well, when Luke and I set up The Property Mentors, we discussed this issue in great detail. We asked ourselves, “Why do so many investors fail to get the results they really want?”
We looked at the industry from top to bottom — the good, the bad and the downright ugly sides of property investing. We asked ourselves, “If we were starting out again from scratch, what sort of advice, support and access to opportunities would we have wanted to experience?”
And then we just went out and built it!
In summary, here are the Top 3 Keys to Property Investment Success that we believe all investors need to get started properly:
1. Get The Right Education
Would you attempt brain surgery on your mother without the right training? Would you jump in the ring with Muhammad Ali in his prime without first achieving a high level of skill in boxing? Of course not! Yet every year thousands of people start investing in property without really knowing what they’re doing. Crazy, right?
Look, let’s face it — there’s never been more information available than there is today about property investing. In fact, everything you could ever need to build a sustainable property portfolio is already out there…somewhere. The challenge is, how do you find it? And then even if you can find it, how do you make sense of it all? Every day we’re bombarded with information — and misinformation! — and it’s easy to become confused, overwhelmed and unsure of how to progress when everyone seems to have a different opinion.
“An investment in knowledge always pays the best interest.”
― Benjamin Franklin, The Way to Wealth
That’s why we recommend that first-time investors commit more time to their education before jumping head first into what can be a very costly investment if you get it wrong.
And you know, education comes in many forms. There’s the theory of investing and then of course there’s the real-world, practical application of investing. We believe that education is not something you do once — rather, it’s an ongoing and constantly evolving experience.
That’s why we decided, when establishing The Property Mentors, to include a true mentoring service. That is, our Senior Mentors are all experienced property investors with real world results, each assigned to work one-on-one with our members to provide them with the guidance, support and accountability most investors need to get amazing results.
Imagine having someone in your corner who you can ask all those questions you wanted answered — as well as answers to the questions you don’t even know to ask yet! Imagine having an accountability partner on your side whose job it is to help you achieve the types of results you really want safer, faster, and more predictably. Now that is an education worth having!
2. Develop Your Property Plan
When asked, most people agree that it is common sense to have a clear, written plan to create the investment results you want. However, common sense is not commonly practiced. In fact, overwhelmingly far more people will fail to create a plan than actually create a clear vision for their investment journey.
Why is that?
Well, goal setting, wealth planning, life designing or whatever you want to call it is not commonly taught. We certainly never learned this invaluable skill at home, at school or in the workforce. No, we had to go out and make a lot of mistakes, spend a lot of money and invest decades learning how to effectively plan out a highly performing property portfolio from scratch.
We don’t have the time or space in this blog to detail exactly how to create a bullet-proof investment plan; however, we will cover this in great detail in our upcoming online workshop, The Ultimate Beginner’s Guide: Property Investing for Maximum Profits on Wednesday, 11 October at 7pm. If you want to know how to create a solid property investment plan from scratch, then click here to register now!
3. Build Your Own A-Team
Property is a team sport. What do we mean by that? Well, it would be virtually impossible for one individual to acquire all of the skills required to do every aspect involved in property investing. Think about it: do you have the time or desire to learn how to become an expert in property research, negotiation, finance, accounting, legal, design, construction, property management, etc.
And even if you did somehow manage to acquire all of those skills, how do you know if you would be any good at them?
It is your choice, of course. In our opinion, it’s always better to work with experts — your own A-Team! — in all the areas of property. Imagine working with top-level mortgage brokers, property-savvy accountants, leading architects, and master builders.
Now in making this decision, the challenge for most novice investors is: how do you know how to find, engage and manage a highly professional team? What questions do you even ask them? How do you know if they’re any good? How do you ensure that you are utilising their services effectively?
Ultimately, the investment results you’ll be able to achieve will be a direct reflection of the skill and experience that you and your professional team possess.