The Most Underrated Real Estate Strategy Revealed
Ever heard the saying, ‘good things take time’? Well, there couldn’t be a truer statement when it comes to real estate strategy. Many times, when people make the decision to get into the property market, they’re met with disappointment and quickly become discouraged.
This is because, like anything, starting something new to establish any level of success, doesn’t come without hard work. It starts with being patient, but most importantly, staying persistent in your quest to become an investor. You need to have a winning attitude.
PAITIENCE PAYS OFF…IN MEGA DOLLARS!
Recently I had some clients find themselves in this exact position. They had potential equity in their home, and they had a good income. On the surface everything looked fine for them to move forward in buying an investment property. Yet when we went to the lenders, there were hiccups.
Firstly, they had four children which can create a big dent on loan serviceability. Secondly, in their partnership one was a stay-at-home parent. Again, this puts a toll on the capability to borrow. Finally, they had some interest rates and small debts (non-deductible consumer debts) that further put a nail in the coffin in the bank’s ability to give them a mortgage.
So, we had to rearrange some things and make a plan – a not so comfortable plan – in order to move forward with securing additional investment properties. The facts were, they needed to rearrange their life. He needed a pay rise, she needed to go back to work, and it took 18 months to get there.
Was it uncomfortable to completely change up their expenses? Absolutely. But it paid off – they went from zero property deals to two, and they’re soon moving on to their third.
For most people 18 months is too long. But property investing isn’t a short-term game, and if you’re not prepared to do the work, you shouldn’t be in the market.
ARE YOU ALL IN?
Let’s talk about whether or not you truly want success. As you can see, the clients I mentioned above, restructured their entire lives to be in a position to purchase property. They put the work in and now they’re reaping the rewards. Because of this, their future looks brighter than ever before. However, in many other cases I meet with people who simply aren’t willing to change.
I truly believe nearly every person I speak to could be a property investor, but they have to have the confidence and grit to take on work that isn’t necessarily fun. If you’re thinking of getting into real estate, ask yourself:
- Are you prepared to reduce your expenses?
- Will you find a way to increase your income if you have to? Would you ask for a pay rise?
- Will you do whatever it takes to look good to lenders?
See often this is where the strategy lies – not in the property, but in your own life where changes need to be made. If you stick to a strategy and have patience, you will achieve much better outcomes than those who don’t.
JUST FOR NOW, NOT FOREVER
Patience and persistence does pay off. If you’re in a situation where you need to rearrange your finances to reach your goals, remind yourself that this won’t last forever. Sometimes it’s as easy as just getting the right help and support.
Learn more about how to maximise your financial position in order to become a successful property investor at one of our free investor evenings. Our coaches will look at your exact situation and give you some options on how to get from where you are, to where you want to be.
By Jason Whitton
Group CEO Positive Real Estate