Beware! The Broke Experts That Could Derail Your Property Plans
There’s nothing more dangerous to your investment strategy than a broke expert. What do I mean by that?
In any industry, you’re likely to find ‘specialists’ who don’t practice what they preach. When it comes to property, the ones to be wary of are those who are quick to tell you how to spend your hard-earned money without actually being successful investors themselves!
You would be surprised to know there are economists out there, who spend their days talking specifically about the economy and the rise and fall of property prices, that don’t even own a house, let alone an investment property.
To avoid broke experts who don’t have the demonstrated experience to adequately help you in your wealth creation journey, here’s what you need to know:
SET YOURSELF UP PROPERLY WITH THE RIGHT TEAM
Something I talk about frequently is when you first start out in real estate, you must establish a strong team who can fully support you in your goals. Often, this means going beyond the expected due diligence to ensure the experts who are guiding you are not simultaneously hindering you.
In order to successfully use property as a wealth creation vehicle you need to assemble a six-star team to manage your portfolio. This team is comprised of:
A property strategist expert (the captain of your team – a coach, mentor, investor and advisor who understands your big picture strategy)
A finance expert
An acquisitions expert
A property management expert
An accounting expert
A financial planning expert
If you have your team all lined-up, make sure to check in with them. If someone on your team isn’t investing in real estate, it’s important to question why.
KEEP AN EYE ON WHO YOU TAKE ADVICE FROM
I’ve said you need to be wary of the broke expert. But you should also be hyper aware of any specialist that doesn’t even believe in property as a tool for wealth creation – so aware you don’t go near their advice with a 10-foot pole.
For instance, if your financial advisor is trying to either sway you towards other types of investments – like the share market – instead of real estate which they may tout as ‘unpredictable’, it’s safe to assume they either don’t know much about property as an asset class, or they don’t believe it’s a plausible way to create income.
Every single person on your team should be there to help you reach YOUR investing goals, and if someone’s acting fishy, it’s usually for a reason.
UNDERSTAND THE EXCEPTION TO THE RULE
The one caveat to the rule of working alongside other real estate investors: check in with their capacity to invest right now.
Maybe they’re in the process of financially working towards their investment property. For instance, we have a lot of young property managers in our team who are lining up their finance and getting ready to invest. Maybe they don’t have five to ten properties yet, but they’re still able to understand the pressures and stresses you’re going through.
It’s not exactly a black and white predicament – you have to do your homework. But if they have no investment properties AND they’re not even saving up to get into the real estate game, it’s a sure-fire way to know they don’t deserve a spot on your six-star team.
The bottom line – take note of intention and action.
KNOW WHAT TO LOOK FOR
It’s not always easy surrounding yourself with the right people. That’s why having the right property strategist to captain the team for you is essential.
At Positive Real Estate, this is what we do and it’s what we do best. We’ll help you to find winning experts, with real experience, who understand your wealth creation strategy. And if you don’t have one, they’ll help you to establish one that aligns with your goals.
Get started at one of our free property investment seminars where we’ll arm you with key information you need about selecting your six-star team.
By Jason Whitton
Group CEO Positive Real Estate