Plan Early For 2011
I cannot believe we are only 9 days away from Christmas with the New Year fast approaching!
This will be the time many of us will be making the usual New Year resolutions to lose weight, keep fit and drink less etc... although I think most of our office has signed up to those!!
But how many of you will be making a resolution to put plans and targets in place to secure your financial future?
This is the best time of the year to make plans which is the main reason we start speaking with our investors to look at the year ahead, plan and set targets of where you would like to be in 12 months time.
I sat down with an investor last week who has been putting off buying for the last 12 months because he didn't have a plan, didn't know how to start and thought it wasn't the right time! By the end of the meeting he was kicking himself because he realised he could of already been well on track to achieving his goals!
He had £50,000 to spend on building a portfolio for a pension income and to pass on to his children at a later stage. He thought he would only be able to buy 2-3 houses but wanted to buy as many as he could... I suggested how about 10 in 5 years!
To have a target of 10 properties can be a bit daunting, which is why we try and break your target down into easier more achievable goals along the way.
2 properties in 12 months does not sound that difficult, which is only 1 every 6 months...
I talked through some examples of the types of standard buy to let deals and small projects our property finder's source on a weekly basis and found the small projects would be ideal for him as it allowed him to recycle his cash on every successful project!
Buying with cash gives you that extra buying power allowing you to get that extra discount, refurbishing to add value and then financing to withdraw all of your initial investment!
His final plan was 5 properties in 3 years and is off to a flyer for 2011 already reserving his first project in South Wales where he is buying a 2 bedroom mid terrace for £35,000 with refurbishment works of around £10,000 with an end value of £65,000-£70,000!
The project will likely take 4-5 months which gives him the couple of months to find his next deal!
I believe the key point in regards to this case was the investor finally decided to take action, we helped him set a target, put in achievable goals along the way and showed him how to achieve each goal.
Article Courtesy of Alan Forsyth @ Property Investment Deals
