The key to successful property investing is to treat your property investment(s) like a business. By following the four pillars of property investing, you’ll develop your overall strategy; manage your finances, taxes and accounting; and build a power team. Joining me in this video is Brand Entrepreneur founder, property tax and estate planning commentator, Tony Gimple, whose wisdom and colourful anecdotes never miss the mark!
Here’s a quick rundown of property investment tips you’ll learn from this video:
Building a power team
Your team is everything – whether it’s for a small project, your first ever conversion, a value-adding extension to an existing structure, a new build, a new project of 300 square feet, or a housing development.
“The real definition of being a good developer, businessman or managing director, is to understand that ‘you don’t know what you don’t know’,” Tony says. It’s important to know something about every single one of the trades so you are able to have a sensible conversation no matter what comes up. And it’s not just about your onsite team, but also having the right consultants in place.
Understanding finance options
In order to maximize your profit, you must have a solid grasp of all the financing options available. “If you don’t understand the options of finance, you’re going to work at a loss.” Tony cautions.
Tony suggests avoiding the mainstream banks like the plague, and asking yourself several questions: Who’s going to be involved? Will it be one main lender, initial finance or equity-based?
Your first project or two will be the most expensive, Tony warns, as you’ll have fewer choices on finance. But these projects offer a chance to prove yourself to the banks for much more favourable loan terms in the future.
Examine your overall strategy
Start at the end and work your way back: What are you building? Where is it located? Who are you building for?
“Before even finding the plot of land, know who the end-buyer is going to be. Know that you have a market,” Tony advises.
Tax and accounting services
Is it necessary to pay for a tax and consulting service from day one? Absolutely, Tony says, and if they have the right expertise they can make you money.
When it comes to choosing lawyers and accountants, “Do your research,” Tony says. “You need a team with lots of experience in a similar sector, with a proven track record.”
If you need help to build an expert team around you for your property investment journey, book a mentorship call with me.