This year, what are your Big Pillars? What are your Big Pillars for investing in real estate?
Please bear with me if you’re scratching your head and wondering if you’ve unintentionally come onto the wrong blog.
To achieve the intended outcome of passive income and the life you desire, you must have, grow, and nurture a few Big Pillars. If one of the Big Rocks is lost, the result is threatened.
So, what are the Big Pillars of Successful Property Investing?
Income
Your income is at least 50% of what it takes to be a successful property investor. You can’t borrow money, or at least have restricted borrowing capabilities, if you don’t have an income. The more reliable and higher your salary, the more money you’ll be able to borrow. Lower interest rates and a high loan-to-value ratio are the results. The higher your income, the more lenders you have to choose from, resulting in more competitive rates and conditions. From a lender’s standpoint, doing extra training to assure a promotion or pay raise, researching across your sector to ensure you’re making as much as your peers, or negotiating a contract over a casual or freelancing arrangement may all assist grow and stabilize your income. Take care of your income, and it will take care of you and your investing strategy.
Time
Make it a part of your DNA to invest in real estate over time. We’re not talking about a few weeks, months, or even years. We’re talking about giving your properties 10, 15, or 20 years to expand in terms of capital and rent rates. A purchase and hold approach is the foundation of property investing success, and it takes TIME! It’s a different story if you’re buying houses, renovating them quickly, and then selling them. If your goal is to establish a thriving portfolio that provides enough cash flow to augment or replace your existing income, you must devote the time necessary to do so.
Self-Belief
When you start telling people you’re intending to invest in real estate, you’ll realize that almost everyone you know has an opinion. While many of these people will be family and friends, most of whom will be well-intentioned and have your best interests at heart, 99.9% of their advice will be based on nothing.
Unless they are successful property owners, their discussion will be based purely on personal opinion—and often, it will lean overwhelmingly negative. “It’s too risky, the market is too volatile, I know someone who lost their entire life savings…” — you get the picture. Smile, nod, and thank them, but make sure you’re getting your information on the market, lenders, interest rates, and other investor-related matters from professionals who truly understand the landscape. Consulting a Property Strategist can ensure you’re entering each investment with confidence, backed by a solid plan and sound strategy tailored to your goals.
Self-doubt will prevent you from seeing opportunities when they present themselves. Get educated and knowledgeable so that you can maintain the level of self-confidence that you require.
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