Making The Most Of Your Property Journey

Having Goals And Strategies 

The first thing I want to talk about is goals. You need to be clear about what you want to achieve from your property investing. Why do you want that? Which is what's going to keep you motivated and keep you moving forward.  

Let's talk about strategy next. There are so many different strategies and I think this is one of the problems people have when they're investing in property. They get overwhelmed by all these different things they could do. They dabble in a few different strategies and never really master one thing. If you want to generate cash flow from your property, it's probably not best to do property development because it's not going to give you cash flow. It's going to swallow your cash. However, property development is something you should do at the right time in your property journey.  

The Two Main Problems When Setting Up

The next thing I want to talk about is resources. A lot of people want to invest in property but have two major problems. One is they often don't think they have the money, and the second thing is they don't think they have the time. The way most people get into property is recognising the equity in existing property, primarily their own home because they've been trying to pay that down over many years thinking that's the best thing to do. People are in the homeowner mindset where they've been trying to pay that down. We can use that at the beginning of our journey to release that equity and use it to buy more properties. First, think about the resources you have in terms of equity. You might have money in your business, you could borrow as a director's loan, you might have a SSAS pension, or there are other people's resources you might have family who've got savings or money in their business doing nothing, other people that have got pension SAEs. There's enough profit in it for not only you but for someone else to make a good income from that deal. Once you get to the point where you've run out of resources, there will always be other people who could fund those deals if it's a good enough deal, creating lots of profit. 

The next thing I want to talk about is resources. A lot of people want to invest in property but have two major problems. One is they often don't think they have the money, and the second thing is they don't think they have the time. The way most people get into property is recognising the equity in existing property, primarily their own home because they've been trying to pay that down over many years thinking that's the best thing to do. People are in the homeowner mindset where they've been trying to pay that down. We can use that at the beginning of our journey to release that equity and use it to buy more properties. First, think about the resources you have in terms of equity. You might have money in your business, you could borrow as a director's loan, you might have a SSAS pension, or there are other people's resources you might have family who've got savings or money in their business doing nothing, other people that have got pension SAEs. There's enough profit in it for not only you but for someone else to make a good income from that deal. Once you get to the point where you've run out of resources, there will always be other people who could fund those deals if it's a good enough deal, creating lots of profit. 

How to Finance Properties

There are lots of different ways you can finance property deals and you need to be aware of what's available and what's possible for you right now based on where you are in your property journey. You could use bridging finance, commercial finance or buy-to-let finance, private finance, SSAS pension, director's loan, credit cards, overdrafts, re-mortgaging, equity release, all these different ways of financing a deal. And the right way to finance it depends on the deal you're doing and where you are in your journey. When you're starting, if you're buying properties to rent out, typically you're going to need buy-to-let finance. If you're doing buy, refurbish, refinance, then you might use a bridging loan or bridging finance because you can only get buy-to-let finance after the property has been refurbished. If you're doing bigger projects, then maybe you need commercial finance. The key thing here is you need to know what's possible. Don't look at a deal and think, oh, I haven't got the money. You need to know where you can get the money from and then work out how you're going to structure that deal to make it work based on where you're getting the finance from. 

Ask Yourself These Questions

Let's think about where you are in your property journey right now. Have you got clear goals? Do you know what you want to achieve and why you want to achieve it? Have you got the right strategy based on where you are right now and what resources you've got available to you? Have you identified all your resources? Or are you just limiting yourself to what's in your bank account? And are you aware of what's possible in terms of finance and have you got systems and processes in place to give yourself that credibility and to be able to manage and execute those deals?  

Want to learn more? Sign up for our Virtual Property Exhibition on Saturday 18th of May 2024!