In this video, I talk about 5 Deadly Property Investment Mistakes (And How To Avoid Them). In the video you'll discover:
Hi, John, Wilson here from Property Investment Blueprint, and today I want to talk a bit about property investment mistakes and how to avoid them. So I'm going to cover five Investments mistakes and the first one is, well spending thousands of pounds on seminars and property training and never using it.
That's a terrible mistake. I mean you maybe know one of these people who is a "seminar junkie", who is just going to all the training events and filling their heads with information, but never actually acting on that information.
Seriously, I mean, you know, most of us will find excuses as to why we're not following the information that we've learned and maybe the most common one is lack of time. Right?
But what if you were to take just one hour a day and implement what you've learned? If you do one hour a day for a week, that's that's seven hours and that is an entire working day that you've just reclaimed. So even if it's just 45 minutes a day, that's a good chunk of time.
So that's mistake number one. Number two is doing a deal for the sake of doing a deal. Now, I have been guilty of doing this myself. Some years ago, we were going through a dry period and a motivated seller called us and we ended up taking a lease option on their property and we agreed to pay a monthly fee for that, and that was just crazy.
We just did that because we felt we needed to do a deal and we wound up paying this fee for several months and we realised that we weren't going to be able to do anything with this property because the the terms were just wrong. So we wasted money and we ended up pulling out of that deal in the end.
So set your criteria or rules, and stick to it. Don't be tempted to let your standards down, just for the sake of doing a deal.
So mistake number three is, "The Grass Is Always Greener" syndrome. So you see what might be a deal and you think well, I think I could get better than that and and you never actually do the deal, because you think nothing is ever good enough.
The solution to that is really just to get to know your area and know when a deal is a deal and set your criteria. So, set the minimum amount of profit that you're going to make out of the deal if it's going to be like a flip or a, you know, a refurbishment project. Or set the amount of cash that you require if it's going to be a rent to rent or an HMO type deal.
Set that minimum level and you know, if you see a deal then and it fits your criteria then go for it. And that way you will get round "The Grass Is Always Greener" syndrome.
So mistake number four. So this one is for people who are refurbishing properties, maybe doing larger development projects and the mistake here is doing a property to your own taste, instead of to your budget.
Now if you were around and into property when Sarah Beanie was doing her Property Ladder show back in the day on the television.
This was something that came up again and again. People would just, you know, not follow her advice and do up the property to a ridiculous spec. The properties would look amazing, but they've just gone way over budget and by doing that they're blowing out their profit.
So people end up putting in, you know, LCD, flat screen televisions in every room, and just going crazy. Perhaps how they would if they were doing up the property for themselves to live in so, yeah, just you need to take hold of your emotions and keep an eye on your budget, on your business plan, and plan everything in advance, and make sure that you're costing everything and making sure that you're not making crazy emotional decisions to put in things that are going to pull you over your budget.
So mistake number five: property investment mistake number five is not dealing with motivated sellers. So if you are running the deal sourcing or deal packaging strategy, and you're trying to find deals then you must be dealing with motivated Sellers and preferably going direct to motivated sellers.
If you are trying to get deals from estate agents, which can be done, but if you're trying to get deals from estate agents and you're competing with other buyers: investors, And homebuyers, then you're going to have problems you need to deal just with motivated sellers.
So people who need to sell, not people who just want to sell. If you if you are dealing with people who are not motivated then it's really a waste of time and you're going to end up spending time and just not getting the deals that you're looking for.Not getting the discounts that you're looking for.
If you're not dealing with motivated Sellers then the way to get around that is to market and advertise directly to motivated sellers.
That's the last of our property investment mistakes. So thanks for listening. If you want to learn more about motivated Sellers and how to how to reach them to get those discounted deals, then you can do that by signing up to our free property course, and you can do that either by clicking the link above or below this video or going to freepropertytraining.co.uk. That's freepropertytraining.co.uk. So thanks for listening and I'll see you next time.