1.Get your financial house in order & track your salient figures at least monthly:
Investing has to start with getting ones financial household in order. This involves budgeting, tracking expenses AND best practise to SAVE 10% of your GROSS Income, BEFORE one spends a cent. The tracking can be in very rudimentary forms such as a simple spreadsheet (contact us for some templates at firstname.lastname@example.org) and ultimately ends up in a full blown Profit & Loss, Balance Sheet and Cash Flow. Hey – , if you want to be successful in property investing, one has to treat it like a business…. – because it is a business… unless of course you want to have a hobby and hobbies COST money, they don’t make money…
Put the 10% away into a completely separate account, which is allowed to grow until at least 3 months expenses are accumulated, 6 months is better. This serves as an emergency reserve – for “just in case” scenarios, such as illness, loss of income, or the like. Note that this is emergency fund and is NOT to be spend frivolously.
After that one saves to invest.
2. Be clear on your strategy and follow it (no shiny objects…), for it determines your failure or success:
There are many ways to “make it in property”. The very best way is to educate oneself about the various strategies and to “pretend invest”, whilst monitoring the “would be” outcome. From there you will find the strategy/area of property investing that suits you. Once decided on a strategy, such as renovate, buy for growth, buy for rental income, buy and flip, buy to build asset portfolio etc, you are well advised to “study the hell” out of that strategy. The intend has to be to know as much as there is to know about your chosen strategy. If you want to play the game you have to know the rules, know to play within the rules and know how to get around the sticky areas. Note that I suggest to know as much as to be able to bend the rules, but never break them. In Property Friends we play within the rules, there is more than sufficient fun and profit in that, rather than breaking the rules and/or taking perceived shortcuts that in the long run only cost money.
3: Have a mastermind/mentor and align yourself with other property investors to get to wholesale buying power. Retail buying is too expensive…
Knowledge is power and if I have learned one thing over the last 13 years as a full time investor one person CANNOT know it all. Hence, as often is said, we are only as good as our team. Everyone remembers the old adage…It’s hard to soar like an eagle when you are surrounded by turkeys…
So, if you are surrounded by turkeys, or when you start and you are surrounded by no one (LOL), go and find a (new) group of advisors/mentors/like minded people (ideally more advanced than you are).
A group makes you more powerful. Leverage (through a group) both in knowledge as well as in purchase power exponentially speeds up your success.
By buying as a “quasi conglomerative” you can access WHOLESALE, rather than RETAIL buying power. I think everyone would agree that wholesale buying power is the better way.