How to start out in property investment

Posted by Mark Lloyd, Property Mastery Academy on 13 May 2019 | Comments

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Property investment is still a great way to boost your income and improve your work/life balance.

However, you may think that investing in property is a dream that’s out of your reach. But have you researched all the different types of property investments that are out there?

There really is something for everyone; the trick is to delve a little deeper to find the right option for you.

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Research before you invest

You only have to read some of our previous articles to see how many different types of property investment there are. They include buy-to-let, houses in multiple occupancy, buy to refurbish and sell (flipping), and luxury rentals to name a few.

Whatever property investment strategy you decide to embark upon, take the time to research the subject thoroughly.

Read up on each option and assess which one best aligns with your current situation, whether that’s cash rich and time poor or time rich and cash poor. Whatever your position, there’s a potentially lucrative property investment out there for you.

Devise your property investment strategy

As we’ve mentioned, it’s likely your personal situation will inform the approach you take to property investment. Basically, how much time and money do you have? Plus, can you take advantage of a network of contacts?

If you have more time than money, it might be advisable to look for joint ventures – two or more wallets are better than one. If you have a good network of contacts that includes estate and letting agents, mortgage brokers, surveyors and building tradespeople, then you have a valuable asset to bring to the venture.

Alternatively, you could try property sourcing. Your network of contacts will come in useful here too. Property sourcing means you do the research and create property investment propositions and put them forward to investors – acting as a liaison between parties.

If you have more money than time, you may want to invest in buy-to-lets, but hand over the management of your properties to an agent. That way, you don’t have to get involved in any of the administration or maintenance.

Find fellow property investors

Before we look at where to find investors for joint ventures, bear in mind the following: be completely sure you and your fellow property investors fully understand what you’re getting into - and then put your agreement in writing.

Discuss the project in detail, consider what could potentially go wrong, look at every possible scenario – then come to a decision and document it. Also, plan what you will do if one party wants to sell or withdraw from the project.

If you follow the above advice, it’s fine to invest with family and friends. If you don’t, you could end up ruining relationships.

As well as discussing your property investment ideas with friends and family, broaden your horizons. Go online and enter into discussions with other property investors on forums. Attend networking events, property seminars, training courses – essentially, explore any avenues that are likely to bring you into contact with property investors.

Once you make new connections, get to know these contacts and learn about their backgrounds. It goes without saying, it’s risky to jump straight into a deal with someone you hardly know.

Would you like to learn more about property investment?

Register for our course: An Introduction to Property Investing

Our Property Investing Masterclass will help you to understand the different property investment strategies that you can use in today’s property market.

Dates: 6th and 7th June 2019

Venue: Marriot Hotel, Heathrow

Book Now! Limited to just 30 places