Get A Good Property Investment Mentor
Have you ever done something perfectly the first time you tried it?
What about once you have done it many times…could you still have done it better somehow?
In all facets of society, every job, sport, physical or intellectual feat, you will always benefit from mentoring or guidance. Not only to learn how to do something, but to continue to hone your skills and improve your performance.
Tiger Woods, Usain Bolt, Roger Federer, Serena Williams…they are the best ever, but they still have coaches. That’s how they stay on top of the game, keep improving, and deal with setbacks or form slumps better than anyone else.
The same counts for property investing. If you want to be up there with the best, you have to learn from people who have already achieved your goals and can share their experiences so you can better navigate your own journey.
So let’s look at some of the specific benefits.
You may have saved some money for a deposit and are ready to start purchasing, but if you are like 99% of first time investors, you have no idea where to start. You might like the look of a particular suburb that you drive through sometimes, but do the numbers stack up? Do you know what constitutes a good value buy? Or some of the potential obstacles you may need to overcome? A property mentor can take a look at your strategy and offer advice to improve it. If you don’t have one yet, a mentor will help you design a strategy and educate you on the best options available to someone in your position.
Building a portfolio
A good mentor should be able to show you how to build a portfolio, from property number 1 to number 10 and even beyond. Sound structural knowledge is important in your property accumulation phase, because buying the right properties, in the right order, at the right time, can help you maximise usable equity and free up your cash flow. You can then reach your goals faster, without diminishing your borrowing power.
After years of finding the best deals and reaching out to agents and developers around the country, a mentor will often have the inside word on the best new deals. Look at Binvested founder Nathan Birch. After accumulating more than 200 properties, agents and developers now come to him with great off-market opportunities and even bulk buying options that he can then facilitate for multiple clients. Without that know-how and mentoring, a regular investor would never know such deals existed and would miss out on building wealth.
Once you have completed your accumulation phase, you need a great strategy for paying down your debt. In an ever changing lending world, your debt strategies should evolve with the times. A mentor will teach you the tricks of the trade when it comes to reducing your debt to the point that you can begin living off the passive income of your investments.
What happens without a mentor?
It is still possible to have success without a mentor, but the risks are many and you may need to do it the hard way. You could buy in a suburb where values have been overinflated, or where the rental vacancy rate is too high. You could structure your debt incorrectly and restrict your borrowing power while still in your accumulation phase. None of these things are fatal, but they are setbacks that can cost you valuable years in the market, where you might otherwise be enjoying equity growth and great income. You might then struggle to pay your debt down efficiently and have to offload some of your property, exposing yourself to Capital Gains Tax and the loss of future value and income.
The Binvested group of companies has people that can help you get started on your property investment journey, but also with structuring finance and debt, legal knowledge and other forms of education. Get in touch to take your first steps towards living life on your own terms.