Remember; the man who moves a mountain begins by carrying away small stones. If you’re serious about starting a business with longevity, then you’ll need to start small – One property is enough to learn the business and build slowly from there. Take time to chose your first investment carefully; think about location, how you plan to make the necessary renovations and what sort of tenants you’ll be looking for.
Of course, you’ll want to grow quickly, but a more considered approach will pay off in the long run.
Whilst it’s commonly thought to be a buyer’s market it’s important you know the going rate for properties in the area you’re investing in to enable you to bag a bargain when you see one.
Don’t be afraid to make a cheeky offer below the asking price when taking the plunge to invest in your first property – property prices are dropping due to a nationwide lack of demand, with as many as a third of all properties sold being reduced by around a third.
After all, the very worst that can happen is your offer being rejected!
Once you have a few properties in your portfolio, think strategically about how and when to sell them. If you have three properties and your deposit pot is looking a bit depleted, then you might consider selling two to recoup some of your costs. If you’re more of a gambler and keen to grow as quickly as possible, keeping two and selling the third might be your preferred option.
The goal in the early days is to grow your deposit pot, expand your portfolio and thus your passive income.
Even in the very early days of building your empire, you need to treat it as if it were a business, and this means keeping a very close eye on incomings, outgoings and your bottom line. This will make the difference between success and failure.
There are a multitude of strategies to help increase your cash flow that we’d love to share with you. If you’re serious about building a successful portfolio, please contact us here today.
We're experts in helping clients develop property strategies that work and would love to help you build or expand your successful portfolio. Our Sourcing & Development Manager, Adam Seal is happy to set up a personal 1-2-1 consultation with you to discuss your requirements and answer any questions or concerns you may have. Make an appointment today by emailing Adam or calling him 01733 293900.