There is a lot of advice out there when it comes to investing in property and it can
be hard to choose what advice is good advice, what advice is bad advice, what advice is
looking after my interest and what advice is looking after the self interest of the
person who is giving that advice.
I try to steer away from giving specific property advice or suburb advices to people however
I do get a lot of questions from people asking me for advice so I wanted to create this video
of my 10 Best Pieces of Advice on Property Investment this is not advice on what property
to buy, what area dot buy in or anything like that this is advice on how you can become
a better property investor and how you can make more educated investment decisions.
My first piece of advice is to; 1) Set your financial goals before you go
and look at property so many people go into the property market game and say I just want
to invest in property, I just want to be rich, male money and they have no clue about their
investment goal, no way of knowing where they want to end up at the end of the day.
I do think that is very important before you start investing to actually set a goal of
what you want to achieve, is it a passive income that will allow you to become financially
free, if so how much passive income do you need each and every year to achieve financial
freedom.
For me that figure sits around sixty thousand dollars per year as inflation goes up I am
sure I would need to increase it but that is my passive income goal or is it your goal
to have a certain amount of equity and cash in the bank by knowing your goals before you
go out and look at investing you can choose an investment strategy that's most likely
to move you towards those goals and when you are analyzing property you can choose properties
that are more likely to move you towards your goals.
Rather than looking at the entire spread of properties inside Australia you can narrow
down your properties based on the properties that are most likely to move you towards your
goal and make you money.
2) Learn a lot before you start investing, the property investing market can seem extremely
overwhelming there is so much to learn that sometimes there feels like there in no point
learning anything let's just jump in buy a property and see how it goes.
There are a lot of people who look at a couple of properties in a local area and they just
buy one because it seems like a good property.
This is not a smart way to invest and yes you can get lucky doing this but it is not
actually a strategic strategy.
What is more so strategic is actually learn a lot about property investing before you
go out there and invest, learn how to research an area, learn how to identify good properties,
learn how to inspect a property so that you can find issues, learn about the different
investment strategies and different pieces of advice I am going to share with you in
this video.
Don't just jump into the market start by investing in yourself and your own education so when
it does come time to invest you are making a more educated decision.
3) Don't decide on an investment strategy too early there are so many investment strategies
out there in fact in the last video I talked about 21 common investment strategies people
use to make money in Australia.
If you want to check out that video go to onproperty.com.au/236 for episode 236 you
can check that video out there but 21 different strategies that's a lot of different investment
strategies and depending on who you are and how you want to make money, what your financial
goal is and your risk factors are that will depend on what strategies is best suited to
you.
What generally happens is when you go to read a book or you watch a video like this one,
you go to a seminar you learn about their particular investment strategy and you go
yes!
This is it for me I am going to smash it, I am going to make money this way but it may
not necessarily be suited to you.
There is a lot of different ways to make money so don't decide too early on what your investment
strategy will be learn about all the investment strategies first before you decide.
4) Once you do decide on a strategy become a master at it, maybe your strategy is renovation,
become a master at it do the course that will teach you about renovating and learn everything
you can about renovating for profit.
If your strategy is positive cash flow there is no point in learning everything there is
to know about renovating you want to become a master in positive cash flow.
How do you find positive cash flow problems, how do you increase your rental.
You research an area and make sure you are buying property that will go up in rent overtime
become a positive cash flow master so whatever investment strategy you do end up choosing
become a master in that strategy because the more you know the more likely you are to make
a good investment.
5) Which is something a few years ago I would have never said and that is get a mortgage
broker involved early, I had a bad experience with a mortgage broker back when I was 20
I was trying to do my first property deal and it turn me off mortgage brokers for a
longtime.
However know that I live and breathe property I understand how important a mortgage broker
is.
A mortgage broker will help you understand how much you can borrow, show you and teach
you what you need to do in order to prepare to get that loan in the future and that will
enlighten you as to how the whole process works.
Mortgage brokers is really important because if you just go you your bank that might be
the one bank that doesn't take rental income into account and therefore they can't lend
you any money.
That might be one bank that doesn't take commissions into account and therefore they can't lend
you any money.
Just going to one bank you are not getting the full picture of what your borrowing capacity
is or what you could achieve financially through lenders if you were to go through a mortgage
broker.
Mortgage brokers have access to over 30 different lenders and they can show you everything out
there and what you can and can't get and they can really help you create a strategy to purchase
that property.
If you want my recommendation of what a mortgage broker currently, my mortgage broker is Brad
the broker and he is awesome I love Brad we went out for coffee, he sat he down and taught
me through exactly what I need to do in order to get a loan in the future and some steps
I need to take to make sure I am actually prepared for when that day comes and brad
is super helpful and I love his down to earth nature.
If you want to get in contact with him go to onproperty.com.au/mortgage you can request
a call from Brad or you can get his contact details over there.
Involve a mortgage broker early on they can get you pre-approval so when you are looking
a property you already got that pre-approval for your finance and then all you need is
an evaluation.
6) To avoid too good to be true deals like the plague.
There are a lot of deals out there that just seem too good to be true.
I had an investor email me yesterday and actually say Ryan can you please have a look over this
deal for me it just seem too good to be true and the yield on this property was huge like
it was $400 per week and the property was for sale for about $220,000.00 however when
we looked into that property in more detail we realize that it was rented to university
students which means that property could lye vacant for about 3months out of the year,
December, January, February when no one is going to university.
There also a large body of corporate fee's on that property with cash flow and there
is a couple of other things that you need to look into.
This property seem too good to be true and on the surface you know it seemed ok but when
we actually dug into it was a regular investment.
You also need to be careful of deals that seem too good to be true that are being sold
to you by someone often they are too good to be true, they are overpriced so just be
careful always do your own research.
7) Learn how to do your own research don't expect someone else to do your research for
me inside my members area on property plus I do a lot of research for people so I will
list positive cash flow properties which I do every single week and I will provide research
data on those properties.
Things like population, our previous sell price a bunch of other statistics about that
property, however I do expect all of my members to go out and do their own research in that
suburb into that property they can just go off what I say and I don't think you should
every go off what someone else says.
Learn how to do your own research so at least then if somebody is providing research like
I provide research to my members you can then go verify that and back it up because in a
lot of circumstances a lot of the research that we provide especially on house and land
packages are actually provided by the different developers who have a different conflict of
interest and they make money by selling the property to you so can that data be trusted.
Learn how to do your own research means that you won't be swayed by false data.
8) Analyze your cash flow injection and projections before you buy your property.
If you are looking at a property you look at how much rent is going to come in, expenses
is going to be, how much body corporate, how much insurance, how much are council rates
and getting an idea of how much the cash flow will be and that will help you if you can
afford this property and whether this property is going to generate enough profit for you
to actually warrant purchasing it.
By doing a cash flow projections early on you can actually cut out a lot of properties
you may have wasted your time on going to the open house.
You can really narrow it down to the properties that look like they are going to be the most
profitable for you.
You can do these by hands and I have videos you can link up in the description below on
how you can calculate positive cash flow problem, however I do have the advance property calculator
which you can analyze the potential cash flow of a property in three steps and under ten
seconds.
If you want to see more on that go to onproperty.com.au/acp for advance property calculator.
9) Get around like minded people by talking about your investment goals and how you want
to achieve financial freedom with people who aren't aligned with you.
What they are going to do is give you advice on that's not really achievable you should
just keep working climb the corporate ladder do whatever it is you do and the thing is
these people probably love you they have your best interest at heart and are really trying
to help you but they not moving towards your goal and they are not going to help you move
towards your goal.
By getting around like minded people, people who are interested in property, people who
want to achieve their own financial freedom you can help each other move towards success.
They will drive you along, you drive them along, the bible says as iron sharpens iron
so one man sharpens another man something like that.
Basically as we rub up against people who are like minded or who are further along with
us they make us sharper and move towards our goals.
I have never really had a mentor in my life I have always found it very difficult to find
people who move at the same rate as me.
I am 26 got 2 kids my wife is pregnant with our 3rd I work for myself I am an internet
marketer and I am passionate about investing gin property.
There is not many 26 year olds that are the same as me but I have always found it difficult
to find people who are like me, however I have used the internet to surround myself
through people through forums and meeting up with people that I have meet on the internet
or through meetup.com and I also have consumed a lot of information.
I have consumed a lot of information from property experts and experts in the fields
I want to go into.
If you can't get around like minded people then consume information from people who are
like minded to you who are further along in the journey to you.
10) Take it one day at a time there is so much to learn about as I said at the start
property is big space to play in there is so much to know things about renovation, solicitors,
paying deposits, financing and saving your deposits.
There is just so much different things you need to learn in order to invest in property
and it can seem overwhelming but don't let it get you don't just take it one day at a
time, just determine to take today and to learn something new today and when tomorrow
comes learn something new tomorrow.
My tag line at the end of my show use to be remembering that your long term success is
only achieved one day at a time and I still believe that to be true.
A long- term success isn't achieved overnight something doesn't just happen that makes us
wealthy and financially free every day we take steps towards that and steps away from
that so take it one day at a time and take those step you need to take towards it I am
just about actually ready to release and e-book called the essential guide to buying your
first property in Australia.
In that book I have identified 21 major steps that you need to take in order to buy your
first property and the goal of this book was to take that overwhelm and narrow it down
to where you are at and what the next step is you need to take so rather than trying
to learn everything there is about property you can take it one day at a time and you
can focus on your next step and how you can achieve your next step.
It is really taking over that overwhelm and making it achievable for you.
If you want to check out that e-book it is currently 71% off and it will be launched
on the first if November but 75% off pre-launch.
You can go to onproperty.com.au/buy and you can check that out, that e-book is an awesome
resource.
I had a lot of people buy it already in the pre-launch and I thank everyone and I think
that is going to be really helpful to a lot of people so that link again is onproperty.com.au/buy,
so I hope those ten pieces of advice helped you become a better property investor that
you take those to heart and you learn how to research and area and don't decide too
early on an investment strategy and when you decide you become a master at it and all the
other piece of advice I have given until next time stay positive.