One of the benefits that property investment has over other, more traditional businesses, is the power to use leverage. Much of this leverage comes from access to finance in the form of mortgages, commercial loans, bridging finance or joint ventures. But there’s another form of leverage to think about as well.
Being The Owner, Not The Workman
I know many investors and landlords who feel like they can save £50 here or £100 thereby fixing a tap themselves, cleaning the property or by finding their own tenants.
Now while they may be “saving” money in their eyes, many don’t consider how much money they are actually loosing.
How much time does it take to do the work themselves?
How much time to re-do the repair that wasn’t quite right the first time?
How much do they lose when their property is empty?
Or is under-performing because they let to the wrong sort of tenants they found themselves
If You Think It’s Expensive To Hire A Professional
The great oil well firefighter, Red Adair, used to say:
“If you think it’s expensive to hire a professional to do a job, wait until you hire an amateur”
There are so many aspects of property investment and letting that you need to consider if you’re going to run (and grow) a successful property portfolio…
- Finding properties
- Evaluating properties
- Negotiating buying prices
- Legal paperwork
- Choosing a mortgage
- Choosing insurance
- Gas work
- Finding tenants
- Managing tenants … and more…
You’re never going to master them all and the good thing is you don’t have to.
Join Our FREE Property Training
For a complete guide to getting started in property sign up for our FREE property training today.
We cover the 3 core elements to property, every investor needs to know as well as seven different investment strategies.
We also include checklists and other downloads that are going to help you analyse any property deal.
So doesn’t it make sense to spend your time where you can do the best job? and leverage the expertise of professionals for all the other tasks?
Let them spend years mastering their jobs, so you don’t have to.
Building A Power Team
As much as this makes sense, there is one downside: you need to find the right people.
It might take you years to find the right letting agents, solicitors or maintenance contractors if you don’t know what to look out for.
I’m talking from personal experience – it took me 7 years to build a “power team” with the combination of experience, contacts and local knowledge that I was completely happy with.
So, when I partner with investors, they get the benefit of all that expensive trial-and-error.
If you ever need any contacts to help you on your way, please feel free to give me a call or email me, and I would be happy to help you.
Having a little black book of contacts you can rely on I truly believe has been my key to Success.
If there is one take away I can give you, then using leverage (in more ways than just finance) would be it.