Alright Day two. Now, what are we going to cover?
Yesterday we talked about the three C's: Cash
flow.,Capital gains, Capital improvement.
Now we're talking about capacity and commitment that makes up
the five C's of the fundamentals of property investing.
What you need to know as you're going in, as you're getting started.
Now, capacity relates to how much money you can borrow because property
investing revolves around your leverage and around access to finance, basically.
If you can't borrow from the bank,
can you borrow from a non-bank lenders or a specialist mortgage lender?
And if those options aren't available, can you work
with your family, with your friends, with private investors?
And so what you really, really, really need to do, if you haven't already done
it, is figure out what's your capacity for borrowing.
And if you're going on mortgaghq.co.nz/profile and fill
in those details.
Take about 10 minutes and we'll get you a spreadsheet.
Can talk to your bank, talk to a few different banks.
If you don't know how much you can borrow, then there's no point in looking
at what properties to buy.
You need to know if you've got $1,000,000 budget, or you can work under it.
And if your budget is only 200-300K to purchase another property,
then you might need to start looking at joint venture or partnership options
which leverage off your skills of finding a good property.
Or if you can't find a good property, maybe you are
in a strong financial position, but you're not in a position to find property.
That's what takes us to the second
topic of today is commitment.
Now, have you set your goal for property investing, for your financial freedom?
Have you set your goal?
Because if you haven't got a goal, it's really hard to stay focused.
It's hard to put in time and to stay motivated.
Each day as distractions roll in.
And it's especially hard if you're in a family relationship
where you've got a partner and that person is not on the same page as you.
It's really key that if you're in a romantic relationship,
or you're investing in a friendship or family, that you guys are on
the same page.
It's really important if you want to buy ten properties
that they understand that, that it's not just a casual approach
and that when the time comes and you find the right property,
that they're actually not willing to take that big step.
And you are because they are just blows your plans apart.
So commitment relates to your time commitment.
Are you putting things in your diary each week?
If if this goal of finding a good property investment is important to you.
Have you schedule it.
Are you spending 10 minutes a day,
spending 10 minutes a week, spending 5 hours on a Saturday.
Savings.
Is your savings rate in line with what you're saying your financial goals are?
Are you willing to execute?
Are you looking at listings every day?
Are you talking to agents?
Are you making offers?
A lot of people say they're serious about property investing.
They might be pre-approved, but 3-6-9 months rolls around
and they haven't made any offers on properties.
Now, offers are not unconditional.
You can put conditional offers in. There's no cost.
There's no risk.
You can go to an agent, offer your number, and if it gets declined then
great, if it gets accepted, then you can do the work.
And are you committed through your knowledge?
Now, that is such thing is acquiring too much knowledge and not taking action,
but a lot of the time execution or lack of execution is
because you don't have confidence or clarity around what to do and when.
And that's one of the reasons that you're doing the 21 days course.
So step one, if you haven't already: Find out your borrowing power, step 2
if you haven't already.
Make sure the people that are involved with your property
investing understand your goals.
And if you need an accountability partner, you can look at the property
formula workshop.
There's an accountability group and every Saturday they meet
and go over case studies.
Otherwise, if you're working with a mortgage advisor
and especially if you've got a pre-approval,
it will give you a lot more feeling like you've got to get something done.
So if you've got any questions about commitment or capacity
let me know in the comments below.