In property investment buying a property is only the first step. You will need to think about whether you want to find properties yourself or whether you want to use a property professional who can build you a successful portfolio. This will all depend on your strategy and the time you have to allocate to your investing. If you are a career professional, or have another successful business, you may want to invest but feel you do not have the time yourself. In this case you can use a property finder, who will charge you a fee, but will be able to do the work for you, so you can get the rental profits but remain hands free. If you are going to invest yourself then I suggest that you get educated first, and learn from someone who has been there and done it, and is at the point you want to be at.
If you are going to use a property sourcing company to find you property, then you should always do your due diligence as well and not just leave it all to face value. You should be looking to do due diligence on the properties you are presented with before you agree to buy. You should also do your homework on the company or individual themselves, and can do this by speaking to others who have used their services, or asking them for contact details or testimonials. A reputable company or individual will always be happy to provide you with access to this, and will give you a better idea of who you are dealing with.
After the purchase you will need to think about whether any refurbishment is required, and whether you rent it out yourself or get an agent to do so. Agents will charge you a management fee, but will deal with any problems and should have a good network of plumbers, electricians and other workers if things go wrong. You can make more money by renting the property out yourself but you will need to be prepared to give up weekends and evenings on viewings, advertising and repairs. So again this will depend on your other commitments outside of your investing. Sometimes it can seem like you are saving money if you rent or manage the property yourself, but if it is taking up a lot of your time that could be spent somewhere more profitable, then it could potentially cost you money.
Best results can often be achieved through leverage. The more personally you get involved with small things not worth your while, the poorer you can become. The key is to outsource as much as you can where possible, and then this will allow you to focus on the other things you enjoy that can generate you more income. As mentioned earlier, building a strong team is vital, and will let you focus on your strong points and get help where needed. You will need to think about this from the outset, so that you can integrate this into your long term plan to avoid any confusion going forward.
- Peter Iwaniszewski