One Mistake to Avoid When Starting Out in Property Investment
It's really important to have a clear vision of what you want and a plan to achieve it.
Clearly this pirate millionaire knows a thing or two about vision and planning.
Lack of a clear goal is a huge mistake and is the single biggest error I see investors making, seasoned ones too.
An investor without a goal is like a 4 year old without arm bands who's wandered into the deep end of the pool - not a pretty site.
I can see how it happens - many people just fall into property investment.
They haven't been able to sell their house for the price they wanted so they rent it out and hey presto they're landlords and dare I say property investors.
As you can probably guess you can't duplicate that process because not many people have numerous houses they've been living in.
Another scenario that happens often someone has some spare cash, endowment matures or they receive some form of inheritance.
They also have a builder mate and together they decide to invest in a do me up property.
Something they can add value to (in principal this is a sound approach).
But they make a rookie mistake straight away their objective is to buy a house - and this is where it begins to unravel...
See anyone can buy a house.
Buying the house is simply one step in a sequence of steps that will lead you to your goal - and done properly it's somewhere towards the end of the investment process.
What they don't realise is they could already be in deep water, if they buy without pre-planning and goal setting in place.
Why I hear you say? Well the most dangerous part of any deal and therefore the most costly is when you're in the deal because your money is committed and you've had to make other financial commitments as well.
Every day you're in the deal more money is slipping through your hands and your profit is disappearing.
The other important element is without understanding your objective how can you be sure that the property will get you to where you want to be? There are so many variables in property investing from purchase price to financing vehicle, from refurbishment costs to exit strategy.
Each will impact the deals result to a lesser or greater degree.
Possibly to such a degree that instead of providing a return it ends up costing you money.
Clearly this pirate millionaire knows a thing or two about vision and planning.
Lack of a clear goal is a huge mistake and is the single biggest error I see investors making, seasoned ones too.
An investor without a goal is like a 4 year old without arm bands who's wandered into the deep end of the pool - not a pretty site.
I can see how it happens - many people just fall into property investment.
They haven't been able to sell their house for the price they wanted so they rent it out and hey presto they're landlords and dare I say property investors.
As you can probably guess you can't duplicate that process because not many people have numerous houses they've been living in.
Another scenario that happens often someone has some spare cash, endowment matures or they receive some form of inheritance.
They also have a builder mate and together they decide to invest in a do me up property.
Something they can add value to (in principal this is a sound approach).
But they make a rookie mistake straight away their objective is to buy a house - and this is where it begins to unravel...
See anyone can buy a house.
Buying the house is simply one step in a sequence of steps that will lead you to your goal - and done properly it's somewhere towards the end of the investment process.
What they don't realise is they could already be in deep water, if they buy without pre-planning and goal setting in place.
Why I hear you say? Well the most dangerous part of any deal and therefore the most costly is when you're in the deal because your money is committed and you've had to make other financial commitments as well.
Every day you're in the deal more money is slipping through your hands and your profit is disappearing.
The other important element is without understanding your objective how can you be sure that the property will get you to where you want to be? There are so many variables in property investing from purchase price to financing vehicle, from refurbishment costs to exit strategy.
Each will impact the deals result to a lesser or greater degree.
Possibly to such a degree that instead of providing a return it ends up costing you money.