Skills of a Good Property Investor

December 22, 2020 12:22 pm

Being a successful property investor takes knowledge and patience alongside an array of other skills which are acquired throughout your journey. Property investing is a great venture to grow your income or capital. Throughout your time as a property investor you will gain an understanding around what it takes to make a success of it. Our article outlines which skills are useful to obtain as a property investor.



Knowledge


Whether you are beginning your first investment or adding a new investment to your already existing portfolio an understanding of investing is necessary. Investing is a great opportunity, however, it is essential you don’t dive in too early otherwise you risk failure.


A willingness to learn and continue growing your understanding around property investing, markets and numbers will stand you in good stead for making your ventures a success.


The property world is one that is well connected, making networking an extremely powerful tool in the property investment industry. This proves beneficial as it provides multiple platforms for buyers, sellers and investors to improve their knowledge and strengthen their understanding.


This well connected industry allows those involved to easily remain up to date with market changes etc. These updates help investors make well informed decisions - assisting with their success.


Understanding your numbers is also vital as a property investor. You need to have the ability to determine which numbers will make a deal work and what numbers will collapse a deal. By performing due diligence regarding numbers and your budget you will reduce your risks along the way. Meanwhile, this will help you envision your investment before commitment.



Relationship Building


As we have mentioned, the world of property investing is one that is built on networking. This makes relationship building particularly important in property investing. Building strong relationships works as a great benefit to your investments.


Relationships work as a two way street and this works in a way that allows each party to bring benefits to each other. Often these relationships can ease the process of your investment.



Vision


The easy road would be buying a property and renting it out, but doing the bare minimum brings you the bare minimum. The best investments are those that you can add value to.


Let your creativity flow and envision how you can bring your property investment to its best possible state - improving your income opportunities.


The best investors add value to a property in ways that bring in more money than they cost.


With experience of sourcing and renovations, a property sourcer and their team will have knowledge of what can add the best value to your property for limited costs, so utilise their knowledge.



Example:


We spent time working with one of our investors to add value to their purchase. This property was purchased at approximately £126K as a one bedroom flat.


Combining our knowledge with the knowledge of our power team and our investor we increased this property by £10K through adding an extra bedroom and en suite, meanwhile, creating an open plan kitchen and living room.






Ability to Work Under Pressure


As you know, property investing is something not to be taken lightly. It is a decision that comes with a lot of responsibility and commitment, but we believe the returns are totally worth it.


There can be a lot happening at one time during a property investment, therefore, it is important to stay focused. Ensure you know what is happening at each stage, even if you have left the management of your property investment in the hands of someone else.


We are also currently in a climate where the market is fluctuating continuously with multiple factors causing affects. This means it is vital that you remain up-to-date with current happenings and how these may affect your investment.


By remaining focused and up-to-date you increase the opportunity for your property investment to run efficiently and become successful.



Be Financially Smart


You’ve got your budget secured and you are ready to commit to investing in a property - great! But it is important that you don’t overstretch your finances. Be money smart. Don’t commit to a deal as a result of FOMO. Make your decision to commit to a deal because it is the right deal for you.



Conclusion


Property investment takes diligence and commitment, therefore, building your knowledge and understanding of processes, options and everything surrounding your investments is important. Over time your knowledge will grow, but you will also gain valuable knowledge by networking among the property community.


By developing strong relationships within this community you offer yourself a two way street of benefits. The property community are one that are keen to share advice and offer help where appropriate, meaning you will not be stuck.


Finding the right property to suit your objectives is important, so it is important you keep your objectives at the forefront of your mind and refrain from diving in too quickly. When you find the right property investment for you you will be presented with great opportunities.


With the right property you will be able to envision how you will add value to your investment. This paired with the experience of your sourcing/ power team will ensure you bring out the full potential of a property.


Working closely with a property sourcing team relieves stresses from you, however, you must still hold the ability to work well under pressure as things can change unexpectedly as we have witnessed in this past year. Be diligent and observant throughout and this will allow you to approach changes with a steady mind.


Disclaimer: This is information based on our knowledge gained throughout years of experience, education and learnings. This information is open to interpretation, therefore, you must carry out your own due diligence regarding the subject.

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