Buy-to-let guide: Education, teamwork and exit strategies

Private Property Reporter • Mar 16, 2020

Property investor education and training is as essential as building your team of professional advisers and having a good exit strategy for every investment

EDUCATION IS KEY

Once you have crunched all the relevant numbers, determined the potential rental return and carefully considered all the other related elements, you should be able to ascertain whether investing in a specific buy-to-let opportunity makes sense.

Whatever the case, you should always invest well within your means and have reserves in place. Property investment should be done with a long-term view and should form part of a balanced and diversified investment portfolio.

There are also other ways to invest in property and whilst being a buy-to-let investor may not in fact be suited to everyone, there is certainly a strategy that is right for you.

Everybody has the potential to become financially free through property. If in doubt about your options, attend investors’ networking events and seminars to learn more about your options and engage with other successful property investors.

THE IMPORTANCE OF COACHES AND MENTORS

For most people, the person we can trust the least tends to be ourselves, simply because our emotions play tricks on us. Having a coach or a mentor who has done what you are aiming to do, is already a great asset.

Being able to test your strategies and opinions, and to not have to second guess yourself and to be confident in your investment choices will put you ahead of the game.

If you are the smartest person in the room, you are in the wrong room. There is always opportunity to expand your knowledge and learn more, and just because there are many potential mistakes to be made in property investment, it does not mean that you must only learn from your own.

BUILD A RELIABLE POWER TEAM

Find professional partners you can trust. Unless you’re part accountant, part lawyer and part DIY expert, you’re going to need professional help in building up your property portfolio.

Finding dependable builders, lawyers and accountants is not just key to maximising your profits but will offer you peace of mind during your investment journey.

MAKE SURE YOU IDENTIFY AN 'EXIT STRATEGY' FOR EVERY INVESTMENT

It is always a great idea to have exit strategies in place. Either have a plan to exit the deal or re-purpose the investment by putting a different spin on it should your primary strategy not pan out as expected. These may include doing an online bed & breakfast offering or another form of short-term accommodation instead, or at worst case, selling the property.

Now that you know where to start...
you understand some of the financial aspects of investing...
we have touched on the investment evaluation metrics...
you have taken into account all costs and run the numbers...
you have a good idea of your rights and obligations as landlord...
you need to keep educating yourself about property and invest wisely...

The next step in your Buy-to-Let Investor Guide is to 'Live Well'!

Have a look at the rest of the Quick Guides in our series for 'Property 1st-Timers':