19 March 2006

To Fail in property investment?

These are some reasons why some property investors fail before they even start:

Many of the experts say you can't lose if you put your money into Bricks & Mortar. This statement is not true. Many of you are aware and/or remember when these sorts of phrases where commonly thrown around in the boom/bust days. However regardles of the state of the housing market-hundreds of investors who have lost their savings through property investment will tell you a different story. There is no such thing as a perfect investment - including property. A successful property investor will learn the reasons why some fail in property and will learn from others mistakes.

This is my personal views on why some fail:

1) "Lack of investment - time wise!!! "The main complaint is that the would-be investor has a job and family and therefore very little time to devote to this investment opportunity. The truth is, if they cut down on wasted time, such as watching television, or surfing the Internet, they would have the time to put into creating financial independence for them and their family in the future.

2) "They don't know anything about it" The excuse is that the would-be investor doesn’t have the knowledge to get into this business. The reality is that most people who have investigated n property investment would have done some study or talked to successful people. The best way to learn is to read books, or take seminars or join up courses. The other aspect to enlist is the help of others. You don’t have to know everything yourself, but you need to have people you can call on who will help you while getting started. Please don't take this to the extreme- just take key ideas and do you own research, please don't do what I have done to me where people have just sat back and got me to do all the donkey work!

3) "Money makes money and I don't have any " The complaint is that you need money to make more money. The truth is that if you find the right property deal, the money will find you. Lack of funds is never an issue with the experienced investor. Lack of a good deal, however, is. If you can find a good deal and negotiate a good price on a property there will be plenty of people willing to put up the money. There is money to be made from sourcing property and introducing this to established investors. Speak to me if you have any properties you can obtain below market value and i will go through your alternatives with you!

4) "My credit record is not any good- who will give me a mortgage" The excuse is that you need good credit to buy houses. The reality is that good credit does help, but you don’t need it if you want to make money in property investment. There are other options- You can always use a partner with good credit to get into investment howver i can truthfully state that my work as a impartial mortgage broker dealing with over 60 lenders I can assure you that I can obtain a mortgage/ loan for you. It won't even cost you any extra for me to do this for you- just call me 07974650751.

5) "There is too much competition" People often make the same excuse when thinking of busines ideas- this is usually never the case . The truth is that there are far more deals available than people. At any time there are many properties available in the marketplace, waiting for the right investor. The reality is that most people who say they are investors simply sit around waiting for a property to pop up. Don’t be one of these people. Go out and create your own opportunities and make your own deals.

6) "The estate agents are too hard to deal with" A common complaint is that estate agents don’t like cooperating with property investors. The truth is that if you find the right estate agent, they can be your best asset in your investing business. The estate agent is there to make his or her commission. If you are successful they will be involved in the deals you do. This means they will create income for themselves, while helping you. Make sure you have one or two agents you work with and let them know you will be giving them business over and over again, as you increase your property portfolio.

If you wish to add to this list, please feel free to do so.
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