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1. Sort out your finances before you buy
- Clear out as much bad debt as possible
- Find a finance broker who is not only familiar with property investing, but is an active investor himself
2. Educate yourself
Take the time to learn about property investing. No matter how long you invest in real estate there is always something new to learn.
- Read some books
- Attend property investing and finance seminars
- About economics and how to study a market
- How to manage cash flow (there are many software programs available that can help you with this)
- How to mitigate risks so that you’re investing safely
3. Find a mentor
Look for a successful investor – or group of investors – who can teach you the tips and strategies you will need for success.
4. Don’t follow the crowd
In fact, do the complete opposite to what the crowd is doing. As Warren Buffet famously said, “Be fearful when others are greedy, and greedy when others are fearful.” In other words, pay attention to the market drivers. The market sentiment can be very deceiving.
Most people will buy when the market is hot – when everybody else is buying. This may not be the best time to achieve the most gain. To make the smart choice, find out where in the property cycle a market is sitting.
5. Choose the company you keep
Make a conscious decision to associate with other property investors. You will learn a great deal surrounding yourself with like-minded individuals, no matter how long you’ve been investing.
6. Be – or become – a good budgeter
What are you willing to cut drastically – or eliminate – to reach your goals? Keep track of your spending, always set aside a good buffer for unexpected expenses and don’t let your money sit idle for too long; put it to work for you.
7. Look for signs of potential capital growth
Look for rental compression. If rental expansion is occurring, then you’ve potentially hit upon a good time in the market.
Remember – capital growth follows rental returns.
For a wealth of tips and strategies designed to help you create wealth through property investing, click here for your free Positive Real Estate membership. There is no obligation and you can cancel at any time.