There are several ways in which an individual can start and grow a property business. In simple terms, what it comes down to is the individual circumstances of a person and the amount of capital that they have available to start their property portfolio. You can only buy the right properties, once you’re clear on your goals and strategy.
Whenever people come through the property investors accelerator program, they will very quickly be able to identify which property strategy is best suited to them. We also take the time to qualify whom we work with, and conduct a free strategy session, to make sure that we are a good fit and the best person is assigned to get you started.
I like to believe that I have an open mind and that the truth is always subjective, but I cannot shy away from the fact that I think the property market has gotten distorted. Several property companies are teaching multiple strategies, and in the process, created chaos for the everyday person, who wants to get started and grow a property business.
Depending on the unique circumstances of a person, the strategy which an individual decides to deploy will be heavily influenced by their available capital. Some important considerations need to be examined, such as, where the money is coming from; This could be equity in your home, a tax-free lump sum from a pension fund, available capital that is de-valuing sat in a bank account, share capital on the stock market, or just cash from a family member who wants to help you with your first property purchase. It is also very much dependent on the time and the risk profile of each potential investor.
Regardless, the secret is about mastering each block of knowledge and building a solid foundation of understanding that you can expand upon to new levels of success. Based on this principle, I teach the fundamentals of real estate within the property investors accelerator program, which is built on these primary principles, believed to be the foundations for growing a successful property business. In fact, if you are thinking about starting and growing a property business, your property portfolio structurally depends upon it.
I honestly believe, that the number of different property strategies available was born, as a result of an epidemic that has spread amongst the nation regarding instant gratification. Everyone is looking to make a quick buck from the property market, but the truth is that building sustainable wealth and successful property business, is based on the practice of delayed gratification. Something that millennials, social media, and new influencers have forgotten.
To be clear, the best way to start a property business is to subtract. While everyone else is adding, we get strategic and focus on less. We adopt monk-like discipline and hone in on the core strategies that have worked throughout history and proven time and time again on the battlefield. These strategies have been responsible for creating 90% of self-made millionaires.
There are many misconceptions about the property business. Investing in property without years of saving is one of them. It is also possible to use real estate as an investment vehicle that pays you passive income with little effort, once you know how and implement the right strategies, which brings me invitingly to my next point. How to start a property business?
The truth is many property strategies work. However, rather than looking at what prosperous property investors are doing, and who appears from the outside to be making the most money, focus on your circumstances and your vision and what you can control. Don’t compare. People often get lost before they start when they attempt to adopt someone else’s strategy.
The best way to start a property business is to build solid foundations and connect the building blocks. It is surprisingly easy to be the best at one thing, but extremely difficult to be the best at multiple things.
Before you start a property business and implement your strategy, you must first raise your self-awareness and take the time to understand yourself. Once you have done a full examination of your current situation, you will be able to execute on the right path for you. When done correctly, this can have exponential results which are sustainable.
When starting a property business remain focussed on long term thinking. The most successful entrepreneurs, regardless of property entrepreneurs, when faced with making more money in the short term, or making way more money in three years, they choose the latter every time. It is this type of approach that you must adopt when developing and growing a successful property business.
I believe that the best way to get started in property is to focus your energy on acquiring income generating assets, even if you have little money or no money to start. Controlling property is suitable for cash flow, but it isn’t long term thinking. While I appreciate and agree that cash is king for any business, I prefer to adopt what I know from history and the magic formula about long term wealth creation.
The simple methodology, that property prices double on average every 10-12 years. As a result, I would much rather spend my time and energy on finding the right property deals that I can joint venture with other investors and learn to master my craft.
That is a superior strategy than utilising my time and energy, sub-letting properties from other landlords for a reduced fee, and making a profit by renting the property to tenants and banking the margin in between. That is short term thinking.
The best way to start a property business is to buy income generating assets. I look for properties where I can add significant value and maximise my return on investment. By doing renovation works to the property, I naturally increase the price, meaning I can look to refinance the property within 6-8 months and use that money to buy my next property. That means that I am in effect using the same money to buy the following property and on it goes.
That is the methodology, that I teach, and is the exact method that I have deployed to add 15 properties to my portfolio in just 18 months. I didn’t start with huge capital either; I have been extremely good at finding deals and raising finance through joint venture partners. I teach people in the property investors accelerator program exactly how to do the same.
Now forgive me, if the concept and methodology that I have just shared with you is vague, but the subject matter is so extensive and requires in-depth training surrounding the area in question. The blog page would be overwhelming and more likely than not, it wouldn’t give you a clear insight on how to execute on this knowledge, and having generalist knowledge can be bad for your wealth.
The main factor to consider when starting a property business and growing a real estate portfolio is how to finance and build a portfolio. For many property investors, this can be a challenge. With any business venture, there are always obstacles and barriers to entry, that require substantial efforts to overcome, and this for property investors is undoubtedly one of them. Nevertheless, once you start to grow your property business and build momentum, there will be an abundance of opportunities that come your way.
One of the things that I have implemented for all of my students in the property investors accelerator program is the chance to be part of a winning community of property entrepreneurs. A lot of the students have great deals, and they can share them with other students within the group, who have access to capital in the form of a joint venture.
However, in short, although raising finance for property deals can be hard work, if you put in the required amount of effort and energy, and follow our instructions, then you can buy multiple properties in a reasonable time frame.
For most people, this is potentially life-changing, and if it’s life-changing, then it was never going to be easy. Remember the old cliché that if it comes easy, it isn’t worth it, and if it’s worth it, it won’t come easy.
With that said, I have been very successful in raising the necessary finance for my property business to date, without having to face too many challenges. When you enrol, I share all of my legal templates and explain exactly how to raise finance in my program.
From my experience there are five ways to start a property business and then finance the growth:
- Using your own money to put down as deposits.
- Buying properties below market value and adding value to create equity that can be released.
- Being patient and waiting for property prices to increase to generate equity.
- Raising capital through a parallel profit strategy.
- Leveraging angel investors’ money through Joint Ventures.
When starting a property business, you must understand that it doesn’t matter how much money you have right now. If you are going to grow a multi-million-pound property portfolio, you must change your mindset of how much money you have in your bank account. The growth of your property business will depend on how good you become at using other people’s money, not your own.
Starting a property business requires financial leverage, which can come in many different forms. With all of my students, we work on mastering financial literacy, conveniently left out of the education system, so here I am filling that void.
The best way to start a property business is to use interest-only mortgages, use good debt to make you money, while you are being patient and waiting for property prices to increase.
You must understand the bodybuilding analogy that you can’t bulk and cut at the same time when a bodybuilder wants to get big; they consume many calories, they then cut back the excess fat later on to show their true muscle gains.
Starting and growing a property business is very similar in nature. We use leverage in the form of mortgages and angel finance to start building our property portfolio; and as we grow over time, we then look to debt consolidate and reduce our borrowing.
In the initial stages, you must maximise your loan to values using leverage, to a safe range and based on stress testing to ensure that you are growing your property business safely. Once you get to a point where your income is sufficient to leave your job safely, ideally paying you more than your current salary you can then start to debt consolidate, decreasing your mortgage loan to values but increasing your cash flow.
How To Start & Grow A “Hyper-Profitable” Property Business
On this online masterclass, Richard shares with you exactly how he went from feeling unfulfilled in his corporate job where he was stuck trading his time for money to building a multi-million property portfolio and replacing his original salary whilst freeing up time to live life on his terms.