Grow your property portfolio faster and with more confidence by learning about these valuable ideas. Today, we look at how you can find the right people for your team, value a property with great accuracy, find those buyers who need to sell quickly, negotiate like a pro with a vendor or estate agent and develop the right strategies for making sure that any property you own stays profitable.
Let’s look at 5 Fantastic Property Investment Ideas that every property investor should know – these five things will help you grow your property portfolio faster and effectively.
Property Networking Events
For some people, networking can be quite difficult at first. A lot of people are not the type that is going to really enjoy going out to events and networking with other property investors and developers. Seasoned investors recommend you try going to property networking events. They said it was really worth the try. Property Networking will give you a lot of fantastic experiences, not to mention getting contacts that are really going to help you in your property career.
Property Networking Events: These days there are lots of different property networking events all across the UK. These are branded events that tends to provide a platform for some idea or strategy. There could be training involved as well. There are also more independent events where that are not as sales oriented, with everything more focused around the connections that can be built within the group. They recommend to try both. You may want to see what kind of property networking event is the right fit for you. If you are short on time, they suggest that you stick to attending the independent events to start with. They can be great for getting a few local contacts that’s exactly what you are going to need.
How will I Benefit from Networking?
The main benefit you will get from attending property networking events is that you can make few connections that will be the key to your growing business. These are people that you can work with in the long run.
Learning How to Value A Property
The second thing to consider is to make sure you know how to value property. If you are just starting out in property it can be hard to know what to look for. It can be difficult to know how to compare one property to another. But once you have a little bit of experience in this regard – when you are comfortable with doing this – then growing your portfolio is going to be a lot easier and a lot more profitable. This is because making accurate valuations is the key to getting better deals. Property Valuation is not an exact science. There is always property that is being sold, either through an estate agent, or at auction that has been either overvalues or undervalued. As an investor your job is to spot opportunity. You want to see where you can add value to a property. You want to be able to spot where a property is being sold at below market value. If you understand how to value a property then, as your portfolio grows, it will be a lot more profitable.
Next up, is understanding how to spot the motivated sellers. This aspect of spotting a deal can be undervalued by a lot of investors. A lot of buyers assume that just because a property is on the market the seller is keen to sell.This isn’t always true – or at least some sellers are more keen to sell than others. You should always try and understand why a property is being sold. And from there ask yourself how motivated the seller is to sell.There’s always a reason to sell a property whatever the property – be it a semi-detached, a commercial development, a one bedroom flat – there is always a reason why someone wants to sell. The truth is that the reason might be something that should put you off buying. There might be a problem with the neighbors. There might be some development that is happening close at hand that is going to change the area.Every seller has some motivation that lies behind their decision to sell. That is why the property is being advertised on the market. It’s important, as best as you can, to understand what that motivation is. But what you really want to focus on is not the vendors that wants to sell but on vendors that NEED to sell. These will be people that perhaps have a predefined time frame in which they want to sell that property. It might be a couple of weeks, a month, a couple of months – whatever it might be, they have a target date in mind. Properties with motivated sellers will all eventually sell for a price that works for the buyer and the seller alike. The only real difference is that the seller has a need to sell rather than just wanting to sell.
Understanding the Art of Negotiation
Negotiation is KEY -It’s important to bear this in mind when you are speaking directly to a vendor or homeowner. And it’s very important to take note of it when you’re speaking via or to the estate agent, who is acting as a third party in the deal.Negotiation is about a lot more than just understanding how to value a property or knowing why the vendor has put the property on the market. It is about bringing all these elements together and then trying to get as much value in that deal as possible. The fact is that when investing in property, you are going to make the majority of your money when you buy. You can’t turn back time. You can’t change a deal once you’ve completed it. You want to make sure that you never overpay on a property. If you can, you want to lock in as much equity in the initial stages when you buy a property. Having value in the deal is going to help you in the long run by giving you more opportunities for an exit strategy. Negotiating hard on a deal is important, especially when you consider the property’s value. Think of the other things you might negotiate on like a car or a holiday vacation. Investing in property is a lot more expensive than nearly anything else that you could buy. As such, negotiation is vital. Even a few percent can save you thousands of pounds.
Know Your Strategy
Lastly, is to have a strategy for the property you are interested in buying. This, of course, shouldn’t be one idea as to what you are going to do but a strategy that involves PLAN A, B and C. So more often than not an investor might go to a property and think “OK, this could work as a buy to let or an HMO”. This isn’t really enough. It’s great to have a clear ideas as to how you want to approach a property investment but you need to have a fallback plan. If PLAN A, for whatever reason, did not work – you need to have a PLAN B and PLAN C that will still make the property work without you having to sell it or discontinue the project earlier than you first anticipated. Having to leave a project by selling it is going to drastically affect your bottom line.
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