For too long, many people have been fed the idea that they can get rich and stay rich through property investing, with no money, no skill and no effort, and it’s simply not true. Especially now.
Property investment is no longer a game for amateurs; nor is it case of buying low and selling high or relying on capital growth and hoping the income covers costs in the meantime while handing everything over to a letting agent.
Property still remains a superb wealth-creation vehicle if you can understand how to overcome some of the challenges to give yourself a much better chance of success.
Think beyond the ‘here and now’
You only have to go back a decade to see the devastating impact the financial crisis had on not just property investors, but home owners too. Those who had only recently got onto the ladder or were highly geared found themselves in negative equity and a lot of investors relied on capital appreciation. A lack of available finance compounded the issue.
Many years ago, I found out the hard way that if you don’t have cash flow, you don’t have a business. By focusing on increasing cash flow, or rental income, you can protect yourself against future market fluctuations. One way to do this is to buy for cash or with a low loan to value. However, in 2004, I came up with a model that would allow people to achieve four times the rental income compared to a standard buy-to-let property, which over 350 of our Franchise Partners have followed to date.
This long-term strategy is not only designed to work in today’s market but will also provide you with a lifelong income for as long as you want or need it.
Stand on the shoulders of giants
A good friend of mine often says: “You are going to have pay for your education whether you like it or not; either by making expensive mistakes or by investing in learning to avoid mistakes from others who have paid the price already.”
If you want to fast-track your own success in professional property investment, it’s quite simple. Make sure you learn from experts who have achieved what you want to achieve, in a way that you would be happy to replicate.
At Platinum Property Partners (PPP), we not only have a ten-year track record in helping people to build successful specialist property portfolios, but a team of over 50 experts to support them - from purchasing, refurbishment and planning specialists to lettings, tenancy, wealth management and tax professionals. They, along with our network of landlords, have all been there, done it and overcome adversity in a diverse range of situations.
Follow a system
Around 90% of businesses fail within the first two years, but if you look at franchising, that statistic is reversed. An astounding 94% of franchises succeed and 90% of them are also profitable within the first two years.
It’s up to you whether to go it alone and have a high chance of failure, or actually buy into some kind of proven system with a much higher probability of success. With PPP, you’ll be following a tried and tested process for buying, refurbishing, tenanting and managing high-yielding property portfolios that covers all of the who, what, when, where, why and how.
Go with HMO
While there are many ways to make money from property, I am a firm believer in and promoter of having long term investments that are highly cashflow positive as a solid foundation to a professional investor’s business.
The professional Houses in Multiple Occupation (HMOs) that PPP develop require hard work and a solid strategy behind them and it’s not a market for amateurs, but if you’re prepared for that, you’ll end up with a solid, virtually recession-proof income.
