Hi. Samuel here. I hope you're having a fantastic day. It is Christmas tomorrow. How exciting
is that? I wanted to give you an early Christmas present, which was the five most common mistakes
that property investors make. Hopefully, you won't make any of these mistakes going into
the new year.
Number one is most property investors buy, I've said this before, it's the biggest mistake,
they buy with their feelings and not with their formulas. I know it's like Christmastime,
but if you're buying properties this Christmas and you're buying properties in the same way
that you buy presents, which is, do I like that, and oh, and it's all with your feelings,
that's not how you should be investing. You should be investing with your formulas, and
then the money that you make, spending that money with your feelings. That's okay. That's
the biggest thing that most investors do wrong. They'll look around the street. They'll check
the neighbours. They'll see if they're okay. Would I live in it myself? That doesn't matter.
The only thing that matters is how much will it rent out for and what's the deal? What
are the formulas? That's the biggest, I think, mistake.
The second biggest is that property investors often think that they have to buy close to
home. They think that they have to buy on their doorstep, otherwise, it just won't work.
They might happen to live in an area that doesn't work very well for investing. If you
live in a city, or a town, or a village that doesn't work for investing, then hey, why
not buy outside of your area? So that's mistake number two, thinking that you can only buy
in your area.
Mistake number three, which is kind of the opposite, is investors who buy outside of
their area, but they don't do any market research. They don't do any due diligence. They don't
figure out what the area is like, what the demand is like, how much the properties are
going for, what kind of tenants they'll get. I mean, I will buy blind in one sense because
I won't necessarily physically look at the property, but I will do my market research
because if you don't know exactly what the numbers are, and what the demand is, and what
the supply is, then you can't calculate the correct formulas and the deal falls on its
face.
Yes, don't necessarily buy only in your own area, but if your moving outside your area,
make sure that you do your correct, proper due diligence and market research. Number
four, the forth biggest mistake that investors make when buying properties is they do everything
themselves. If some of the investors that I know who aren't investors, they're actually
landlords, they're landlords first, and yeah, maybe an investor when we need to be an investor
first, landlord second. Some of them you could ring them right now on Christmas Eve pretending
to be an upset tenant and they would answer the phone. What a terrible business. You might
have a 100 house, but you haven't really got a 100 houses. In fact, you've got 100 headaches.
If you do everything yourself that's not financial freedom. We call that a rope around your neck.
You want a business, not a job.
The thing to do is to get a set up whereby you've got good people in place doing the
work for you. You've got good managers. I personally have got property managers that
manage all of my properties and then I've got an overseer. The overseer is the person
who chases the property managers and oversees the managers. The overseer, one person, is
the only person who's allowed to speak to me. And guess what? He won't contact me on
Christmas Day. You want to systemize business, so don't everything yourself. And everything
that can lead to is if you do everything yourself because it's not physically possible is on
Christmas Day, for instance, or just generally speaking, if you've got lots of complaints
or problematic tenants or you've got issue, you bury your head in the sand, and you think,
oh, I don't want to deal with that. Then, it just gets worse, and worse, and worse,
so don't try and do everything yourself. Just get a good system in place.
Number five, this is a massive, massive mistake which is costing you hundreds of thousands
of pounds. Biggest mistake number five, most property investors don't buy enough properties.
They don't buy enough. I look back 10 years ago when I started investing and I'm just
thinking, oh my goodness, why didn't I try and buy more properties. I've seen over the
last 10 years, some of them have double in value, and I'm like, oh, if only I just bought
more at the time. It always feels like, should I buy, should I not. Buying properties, you're
always going to be safe buying properties as long as you don't make these kind of mistakes,
as long as you get good systems in place, you have good people to manage the business,
you're buying the right properties with right power team, with the right market research.
As long as you get that right, go and buy as many properties as you can because when
you buy property you get paid twice, once in capital appreciation and once in rent.
Those are the mistakes. I hope you have an absolutely beautiful Christmas. I look forward
to seeing you very, very soon. God bless.
Thank you so much for watching this video. It's Mentoring on a Monday, every single week
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