I just had to write about this again because I read a blog today that really highlighted the fact that property investors find it hard to actually start investing and the fear of a first time investor will often actually stop them from starting their investing.
I am just such a great believer in property investing as a way to build wealth that I want to get across to new and early investors just how important it is to be focused so that confusion and fear do not stop you from growing your wealth.
In past articles I have mentioned about writing a business plan and about creating a short list, but I just want to stress here that a very important step in the process of creating a short list is to actually decide what investment strategy you are going to use.
Throw down those books!
“What!” you might say. I am a strong advocate of online education with property investing, but what I am saying here is once you have undertaken a reasonable amount of research and education you will have had time to start forming decisions about the type of investment strategy that you will be comfortable with and it is here that it is the time to ‘throw down those books’.
Once you have decided on your investment strategy, put all the other methods aside. Each property should have its own strategy and you should know this before you even start looking to buy. Once you have decided on the strategy, you can then short list your requirements for the property that will suit that strategy as each strategy will require a different type of purchase to achieve maximum results.
When an investor tries to work with several strategies on the one property, that is when they invariably get confused. AND guess what, that is when the fear kicks in because there are so many issues to focus on that the whole exercise turns into a mess and the investor will either not go ahead or go ahead but not get the results they were after.
The morale of the story
When narrowing down your strategy for investing have an overall strategy for the next 5 – 10 years, but work on one property at a time with one strategy on that property. As time goes on and experience and finances change, then more elaborate strategies can be employed, and your business plan changed.