Is it hard to be a property investor?
For many people who begin investing in property, they are drawn to the idea because they are looking for an answer. That answer may simply be giving up the day job and creating the financial freedom to do the things they love. If you want to know if property investing is an easy solution, with full transparency we shall answer the question: Is it hard to be a property investor?
What is Property Investing?
Property investing involves many opportunities for earning income that go beyond the basic notions of being a landlord or a property developer. Rather than being limited to a single strategy though, most professional property investors will diversify their investments over many different strategies. Diversification of a property portfolio brings with it added security during times of change.
In short, property income is be generated by either earning regular rental property income or earning lump sums of money from flipping property. Flipping is the process of buying property, increasing its value and selling for a profit, and can be any type of property from residential family homes to land or commercial property.
Rental property, also known as Buy to Let property, can be extremely diverse itself, including family lets, student lets, holiday lets, social housing and commercial lets, and more. The key roles of a property investor can therefore be boiled down to finding the right properties, in the right areas that can be used for the right investment strategy. How hard can it be?
Is it hard to be a property investor?
Property investing is more tangible and easier to grasp than many other types of investments, such as shares and bonds or bitcoin for example. A house is a physical thing that you can see and touch, and the process of renting it to tenants seems straightforward enough. In one way shape or form, many of us have been tenants ourselves during our lifetime.
Some people may feel perturbed by the legislative and compliance elements of being a landlord, such as becoming involved in property management, navigating landlord taxes or keeping up to date with government regulations. However, this is where the importance of a team of experts comes in to play. Something we call the Power Team.
With so many important aspects to consider when buying, refurbishing, renting or selling property, it is best to leave the details to those in the know… the experts. Hence having a trusted team of mortgage brokers, letting agents, architects, solicitors, tax advisers, and many more, will be crucial for your success as you build your property portfolio. So, if the experts do all the hard work, it begs the question…
What do Property Investors do?
Everyone will have their own systems, methods and ways of working. At Asset Academy we teach that as a property investor you should have just two key tasks. All other tasks can be outsourced to experts who do that job day in day out, thus freeing up your time to focus on what is important. This is how property investing can move you towards earning passive income, by working on your business rather than in it.
The first task, quite obviously, is searching for and finding investment properties to purchase. However, it should be noted that it is possible to earn rental income from property without needing a mortgage loan or even owning a property. To find out how, have a read of our blog post: Rent to Rent Deals.
While finding suitable properties that will have a good rental yield or development potential may sound simple, it is very easy to get it wrong. The good news is that the process is simple, and one that anyone can do. It is just a case of implementing systems like the ones we teach on our Advanced Training Courses, which when followed consistently, plot a path towards finding the right properties in the right areas.
The second task is raising the finance to purchase, refurbish or develop properties. While the standard approach is to apply for a mortgage loan, there are many situations where a mortgage will not be granted, for example, due to your personal circumstances or the physical condition of the property. In such situations creative financing strategies can be employed such as Angel Lending, Bridging Loans or Lease Options.
Property Investing is Simple
When we break it down, being a property investor is relatively simple. Yes there are many elements involved with doing things the right way. Yes complications do arise. And yes there will be a lot of information to learn. However, this is where a solid property investing education is a big advantage. Not only will you learn the right systems that will make your life easier, but with a good educator you will also have the support of a community and mentoring potential.
The hard part of being a property investor is being committed to put in the effort, consistently and over a long period of time. It is not just a case of scrolling through Rightmove and Zoopla plus phoning a few estate agents. Property investing is a people business and involves getting out into your investment area, talking to people and building relationships.
So although property investing is simple, it will take hard work and dedication. However, all that hard work will pay off, because once you have established your property portfolio, your role will become much easier and much more passive. Therefore, to the answer the question: Is it hard to be a property investor? No, it is not hard but it will take hard work.
Find out more
If you feel that property investing education is something you would like to know more about, we have a blog post dedicated to how to separate the good property educators from the bad ones. Or if you would like to learn a bit more about property investing in general, why not join a FREE one hour Discovery Training webinar. Good luck with your journey, and if you have any questions just get in touch.