Property Investing Timeline Foundation

Getting Started With Property Investment – Your 15 Part Property Foundation Timeline

Ok, we get it!! All you really want to do is fire Rightmove up, look at some properties and get going, right?

But how is that working out so far?

Even if you have found something of interest. Do you categorically know that the property is right for you and your business model? Are you sure it’s the best use of your capital and that this property is one that fits who you are now and where you want to be in the future?

I am guessing no, and that’s most likely because you don’t yet know the answers to the questions I’ve just asked. I am guessing at this stage of your journey, you’re a bit lost, right?

You’ve probably watched a bunch of YT videos and maybe read some books (hopefully one of them was mine), but you still don’t know what to do first, let alone HOW to do it.

Well, that’s where we come in; we’ve made this blog as a tool to help you with your very first ‘To-Do’ list.

Now, If you work through the list as demonstrated in this blog, you’ll have yourself a bunch of jobs that will not only keep you busy for the immediate future but will create foundations, solid foundations for you and your property business to boot.

Not only that, but they’ll also start to clear your thinking since you will be increasing your education in the right areas as you advance, which in turn will bring that ‘holy grail’ of confidence to your journey.

So regardless of what we have been doing previously, we need to ‘Press Pause and do it Right’ if we’re to be successful. We need to adopt some patience at this stage and lay some good, solid foundations to our business.

A Quick Question

Before we begin, let me ask you one quick question (and you should think about this ‘carefully’, before you answer)

Our question is ‘Why’ are you reading this blog? Now that might sound like an odd question right now but consider it for a minute before you answer.

Are you reading this because you genuinely want to learn? Because you want to understand exactly what’s missing from your research, and you want to implement it? Because, in actual fact, you’ve watched countless hours of YT videos. You might have even done a couple of free property courses or webinars, but you still feel lost, overwhelmed, confused and completely unsure of where to start.

Well, if that’s the reason, then there is an underlying problem here.

Either you haven’t come across the right type of blog or video yet, or your system for filtering poor-quality sales-driven education V’s good-quality responsible education isn’t refined yet ‘or’ the problem it’s you!

What? How dare I right?

OK, that last one might sound harsh, it’s obviously not my intention to offend anyone here, It’s just to offer some consideration to the question.

Because the counterargument to why you are reading this blog is because you want to procrastinate some more, you want to watch countless more hours of YT videos, hit some social media to talk about property or read a few more property or ‘success’ related books because it gives you the illusion of action and progression.

Now it’s worth mentioning here that your brain really can’t distinguish the thought of action and the act of action. So if we’re engrossing ourselves in content daily, and it’s not the right kind of content, the advertently what were doing is counterproductive since we are creating inaction by strengthening the wrong type of neurological connections within our mind. but that’s a whole different topic for a different day.

So let’s hope that the underlying problem is either your video choices or the systemic problem and not the other more innate problem.

Ok, so either Im talking to myself here or you’ve hung around to see what else we have to say, that’s great (if you’re still here). Now, the reason why I asked that question is because how you proceed through this blog and, crucially what you do after you’ve read this blog will ultimately answer the question for you
Because you can’t hide from the truth. Remember, we all talk a good game, but only those who take action will progress to where it is they desire.

Our actions demonstrate much more and speak far louder about who we are than our thoughts or words ever will.

So, if you are struggling with not knowing what to do in the first instance or how to get started with your property journey then after you’ve read this blog there really will be no excuse, except the ones you fabricate.

Ultimately, it’ll come down to what YOU do next with the information received because no one is going to do this for you, we can only help.

YOUR ACTIONS will determine YOUR future.

1) TIME – How much available ‘Time’ do you have each week to spend on your property business?

Bear in mind that different property investment models require more time than others, and be realistic with your estimation and if needed, be conservative, since indicating 15 hours but finding out that you only do 8 hours will be detrimental to your success because it will negatively affect your mindset.
Whereas being realistic and citing 8 hours but then carrying out 10 will have the opposite effect.

Your first job is to calculate your time availability accurately – We have a time calculator for this you can download here from our Tools section.

2) EDUCATION – How much ‘Education’ do you have?

Not only with property education and specific to your investment model, but with

• Finance
• With mindset
• With strategy
• With numbers or mathematics
• And business planning and execution and so on

What you need to do is to rate your current ‘Education’ out of 10 and then note down EXACTLY and in detail what it is you’re doing to increase this education, focusing on your weaknesses rather than your strengths.

You can SWOT this if you know what that is, and if not google it or you can strategise it. And there is More on that later.

And by the way, once you have rated this out of ten, you should take AT LEAST 2 points off, because you’ve almost certainly overestimated since we don’t know what we don’t know right? The trick with this is to identify areas of weakness to work on.

3) CAPITAL – and how much you currently have?

Calculating this accurately will be crucial to your strategy and forward-planning projections.

When we calculate our capital we not only look at our liquid cash but also:

• Assets release or transfer
• Equity release in an existing portfolio or in your home
and do you know how to calculate this accurately to see if it makes financial sense, as well as to mitigate any fears that you or your partner may have?
• Disposable income (Weekly or monthly), essentially, can you top-up your capital, periodically?
• Joint Venture Capital
• Angle money access
• Stakeholders’ capital – were talking friends, family & colleagues.

Calculating this accurately at this stage will be CRUCIAL to your strategy and forward-planning projections since we will need to adopt completely different strategies if we have £10,000 in the bank than if we have £200,000.

Free 15-Part Foundation Builder – Strategy Planning Tool

Download our checklist and strategy planning guide to help you set your property foundations!



4) WHY – Carefully consider exactly why it is you want to invest.

CONSIDER

• What is it about this WHY that will help you maintain focus?
• What is it about this WHY that gives you the determination to succeed?
• What is it about this WHY that will motivate you when challenges present themselves?

Remember being rich is not a strong enough why, we need something we can lean on throughout our journey to help maintain mindset and focus, because despite what you are led to believe this business does require you to put in the effort and there will be challenges as there are in any business.
Yes it will eventually turn passive but we have to get to that point first.

5) MINDSET – Do you have a Fixed or Growth Mindset?

Have you taken the time to understand Mindset in much greater depth?

Mindset is something that will be fundamental to your success, its importance cannot be overstated. Ignore this at your peril guys

Don’t burry your head and assume that you have mindset boxed off or that this is not tangible enough at this stage. Mindset is what stops around 80% of people from progressing in this industry, so sorting it out at this stage is paramount.

Remember by increasing your understanding of the mind, You’re increasing your education in the right areas and in the right way so it’s a massive step forward and if you’re not convinced then you’ll just have to trust me on it, I have seen it all to often.

A great book to get you started with this is Carol Dweck and her book ‘Mindset’

6) VISION – What is your overall ‘Vision’ with your business.

Where do you see yourself in the future and at what point does that future happen? –

DO we know EXACTLY what we want to achieve with our capital?

My advice here is not to look at the ultimate goal but rather to look to the first significant change to your life or lifestyle.

Some considerations for your vision are:

• Is there a monetary value you NEED to be able to leave your current job?
• Is there a monetary or time value that you can place that gives you the lifestyle you’re looking for?
• Can this be traced back to your WHY?
• How long are you able to reinvest your accrued income without using the money in the way you intend?
• Do you have a timeframe on this ‘Vision’?
• And finally, are the above answers plucked from the air or are they done with careful consideration and planning?

7) CONTROL STRATEGY – What is the avenue for ‘Controlling’ your portfolio and business?

Be sure to seek good advice about this since a LTD company control strategy may be the on-trend approach, however, it’s not always the right option for you given yours and your partners income or standard rate tax allowances.

Essentially we need good advice from an accountant on Ltd Company V’s Personal investment portfolio

Further to this we need to look at what each avenue would entail with regards to record keeping, admin, tax remittance and so on.

Speak to a good charted accountant about this and ensure they take the time to find out about you, your position now, in the future and explain the pro’s and cons of each avenue.

8) INVESTOR MODEL – What type of investor do you want to be now AND in the future?

Have you considered ALL the implications, including sourcing, refurbing, logistics and any financial impacts?

Will you be Hands ON – Sourcing Viewing, Refurbing, Managing, Maintaining YOURSELF. Or Hands OFF – Having properties sourced, refurbished, and managed by external contractors or agents, Or will yoU be a mix of the two avenues. And if it’s a mixed approach. which ones apply to you?

9) THE NUMBERS – What ROI, Yield or Cashflow are you looking for?

If we don’t take time to understand exactly what we are looking for in these deals, then don’t expect to make the right choice.

Just for clarity here, there is no single figure with any of these calculations that will determine if the deal stacks up since we are all different and we will all look for different things within our portfolio.

For example, some may go for a smaller cashflow because the property has been BRR’d therefore your ROI will be far higher.

And some may go for lower ROI’s because they either really want ‘these type of properties within their portfolio or they have strong opinion on the capital growth of the area.

There really is no right or wrong, only what suits you. But establishing this at this stage is crucial since it means we don’t go into deals blind. This calculation is intrinsically linked to your vision so work on these two points together.

10) WHERE WILL YOU ENTER THE MARKET?

10.1 PRICE BRACKET – What value of property will you look to target.

Be sure that you calculate the value of your investment with how much money you have to spend. This means looking at how many properties we’re able to buy with how much money we have right now and in the future This way we are efficient right from the start.

10.2 LOCATION – Do you know where in the country you will invest?

You’ve just looked at a price point, so the next logical step is to look where in the country we can find these properties. Fire up Rightmove and start to locate suitable areas.

10.3 PROPERTY TYPE & MODEL – Do you know what property ‘Model & Type’ you will pursue?

Property Types include;

• Single Lets
• HMO’s
• Serviced accommodation
• Commercial buildings

Property Models include;

• Buy and holding – this is for capital growth
• Turnkey – which gives instant cashflow
• BRR – for ROI or stretching and recycling of your capital
• Flipping – which can help boost your initial working capital
• And then Rent to Rent or lease option – which is the no money down approach.

10.4 KYC’s – ‘Know Your Customer’

Have you considered your customer?

Do you know who it is you will target with each property Model & Type?

In most cases, this needs considering before we start our property search since some properties will suit some tenants and others will attract others. A prime example of this is a £50,000 ex-council house in the Bronx won’t attract a nice hard working Harvard professor.

Just like most other points on this list we can’t move on to finding and buying a property, if we can’t answer this question.

11) SOURCING – Exactly how will you source property based on;

• Location
• Infrastructure
• Crime rates
• Desirability
• Rentability
• Demographics
• & AVAILABILITY which is of course the big one!!

Remember these need to meet your pre-determined or ingrained personal values.

Will you scour Rightmove yourself, visit property auctions, approach sourcing companies or target vendors directly in what is know as direct to vendor advertising? This one may be linked to the big three, being your time, education and starting capital.

12) ANALYSING PROPERTY –

Do you know exactly how you will analyse your properties when you view them and how you will check the feasibility of these properties when you back from the viewing?

We’re not simply talking about mathematics here, we need to look at the property’s suitability to your model as well as to ensure it is structurally sound and more importantly that you’re not in-fact buying a money pit.

13) FINANCING – How will you be financing the deals you find

• Using your own ‘Working Capital’
• Using ‘JV’ money or JV partners
• Using ‘Angle Finance’
• Using Leverage from a lender in a standard buy to let mortgage – will this be on an interest only or repayment product.
• Will you use ‘Bridging’ loans
• ‘P2P’ or pier to pier lending platforms
• Do you have access to ‘Stakeholders’ capital.
• will it be a blend of the above avenues.

Now, don’t simply select a mix of the above and move on here.

Carefully consider these options and pursue the avenues.
Especially with your stakeholders.

It is never to early to begin to have conversations with friends and family or even work or business colleagues.

14) STRATEGY – Have you considered developing an easy to follow & ACTIONABLE ‘Strategy’ using the WiseOwl patented model of establishing your DNA

That’s Diagnosis, Navigation and Action.

Essentially identifying the vision with the challenges or opportunities

Then developing short- and medium-term goals and objectives to achieve those goals and then Actioning these by prioritising and diarising?

It is a long winded book but you should check Good Strategy Bad Strategy by Richard Rummelt to further understand the term strategy.

15) NETWORK – Have you looked at increasing your network through

• Facebook
• LinkedIn
• Local landlord associations
• Local landlord group & networking events
• National landlord group networking events
• By visiting Auctions
• by joining business clubs and many other ways to connect with like-minded people.

Remember these don’t all have to be property related. We need to expand our education in other areas too and you will find stakeholders, JV partners or angle investors at these events too.
This should be done weekly, and your focus should be on quality not quantity.

Unfortunately, as is the nature of this you will have to weed out the sales and the poor quality connections as you go. however, we can start grow exponentially once our network increases. So, focus on it and persist.

I promise if you work through this list it will take some time and it will fill your diary.

It will be challenging at times. BUT it will create momentum for your journey which invariably will open more doors and avenues as you progress. Growing exponentially until, before you know it, you’re really doing it, you’re thinking clearer and creating tangible actions.

Remember, there is no such thing as ‘The one thing you need to Do’ or worse ‘all you have to do is this’ you just have to set off with a task, maintain the momentum and as Oliver Burkeman says in his book, 4000 hours, ‘stay on the bus’.

So that’s it guys, no dream selling BS, no hype to make you think you’re going to quit your job next week, work a few hours a month and buy a Ferrari, it’s just good, solid and more importantly, honest education.

It’s now for you to decide where you go from here with what we’ve just talked about. Remember, ACTION is the only thing that will make this work.

Free 15-Part Foundation Builder – Strategy Planning Tool

Download our checklist and strategy planning guide to help you set your property foundations!

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