How do you really start a buy to let property investment business in today's market?
Let me give you the ten things I think you need to consider.
Hi there, my name's Tony Law from your Your First Four Houses.
My channel's all about helping you get to investment property number four as quickly
and as painlessly as possible.
Let me give you these ten things, I feel, you need to have at the forefront of your
mind in order to be successful in this property investing world of ours.
The very first one is to, you need to understand your financial goals.
Let me give you a specific way you should do this.
You basically need to understand how much money you're spending every single month.
Download three months worth of bank statements, work out what you're actually spending every
single month, and that is the target that you need to hit, essentially, to be financially
free.
The sooner you hit that target, the sooner you can basically give up the day job, essentially,
and focus far, far more of your energy on building your property portfolio.
When you know what that number actually is ... Now I run a paperless office, largely,
but when you know what that number is I need you to do something vert manual for me.
I need you to go and draw up one of these, it's effectively the kind of thing that you'd
see if you were trying to raise finance for a particular project.
At the top of it, you're going to have that target, that number that you've just worked
out.
Running up the side, you're going to have integers at about, say, 500 pounds, little
marks going up the side.
Whenever you do a deal that puts money in your pocket you need to colour that in.
It may sound primitive but it's incredibly powerful.
I've recommended this to a lot of people that use it and they find it really, really helps
them keep focused.
Moving on quickly to point number two, you need to work out how much time you can give
to this.
Really, if you're working full-time, that doesn't mean that you haven't got time to
do this.
You've got your lunch times, you've got your evenings, and you've usually got your weekends.
How much time can you give to this?
The more time you can give, the better and faster results you're going to achieve.
Next number three, I need you to start building your education.
Now, there's a number of ways that you can do this.
You can look at podcasts, you can get books, webinars, you can employ a coach, mentor,
you can look at some courses.
The sooner that you can build your knowledge, the sooner you're going to better achieve
bigger and better deals.
One of the specific things I'd like you to consider if maybe this is an area of weakness
for you, is to maybe get some training on negotiation because this is a real key thing
that will really help you when you're speaking to agents or when you're speaking specifically
to seller.
Please look into that.
Number four, the sooner that you can focus on picking your strategy, the sooner you're
going to be successful.
Now, I like people to focus on maybe one or two core strategies.
Rather than having more of a shotgun approach, it's better to be more laser focused.
See if you can work out which one or two core strategies would work really well for you
and start focusing on those.
Number five, research the different areas and work out where you should be actually
buying.
Now, I did a video recently on this that basically gives you a really detailed explanation on
how to work out supply and demand in any area within about 60 seconds.
You need to look at other things.
In the area that you're actually looking at, what's the situation with regards to perhaps
new employment?
What about transport links?
Are they being improved, specifically?
What about population?
Is there an increase or decline that you've noticed?
All of these things can really dictate the better areas to actually invest.
Point number six, go and see a mortgage broker.
You need to find out what kind of mortgages you can get.
Again, I did another video here on how to actually improve your credit rating.
I would strongly suggest that you watch that.
That will give you some real key tips to improve your credit rating, which is going to mean
you'll get better access to better mortgages at lower rates.
Number seven, you need to learn how to find great deals.
Now, I know that this is a massive topic and we can go into this in a lot more detail.
Essentially, you do need to understand how to find better deals.
You need to learn, very specifically, what makes a good deal for you.
Honestly, this is a real key thing.
You may have no funds at all but if you can find and negotiate really good deals, honestly,
you'll never have problem raising the funds.
I'll invest with you if you can find really good deals.
In essence, there's lots of people around you that will be delighted to put money into
the deals if you can find them.
Next, start building connexions.
When I say that, I'm talking about connexions with agents.
I'm talking about connexions with deal sources.
I'm talking about connexions with people who can help you fund your next deal.
The sooner you start building genuine, sincere, honest, full-on relationships, friendships
with people, honestly, the sooner you're going to actually be successful in this property
world of ours.
Number nine is simply exit strategy.
So many people I talk to have no clear exit strategy.
They don't really understand their exit strategy at all.
I always encourage people to consider two exit strategies.
I would love you to do the same.
Even before you buy that very first property, just consider, are you holding this for the
long term?
Is this a flip that you want to churn to get the money out very, very quickly?
If things don't work out, is there a second way out for you?
Number ten, this is the big one.
This is where so many people stumble and that is, you have to take action.
Now I know that seems bleedingly obvious but so many people, they build their knowledge,
they learn, learn, learn, but they stop at the action taking point.
Frankly, I don't really understand this if I'm being truthful with you.
I think it's largely down to fear quite often.
Quite often, perhaps, having somebody behind you that's maybe got their hand in the small
of your back and just pushing you forwards or just giving you a bit of a shove to actually
take that action might be really beneficial for you.
Let me ask you a question.
How many properties have you actually been out to see this week or this month?
If they answer is none, then you're not taking any action, I would respectfully suggest.
You need to take that action.
I really hope that you found that helpful.
I just want people to be successful in this property world of ours and to get to that
magical place where the income that's coming in surpasses the money that's going out.
If this sort of stuff really helps you, I am absolutely over the moon.
My name is Tony Law from Your First Four Houses.
I really hope you found this one helpful.
I look forward to seeing you in the next video.
Before I go, please if you can take a moment to subscribe to my YouTube channel, if you
haven't already done so.
That would be absolutely brilliant.
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Thanks ever so much.
I look forward to seeing you in the next video.
Thank you.