When people first get started in their property investment process they tend to start as empty books; a lack of knowledge, a lack of experience and often a lack of liquid equity. People can go down a few different paths but the two main paths; a path where we learn by making our own list of mistakes or a path where we make a point of learning from others experience. Surrounding yourself with a network of professional, likeminded individuals can be the difference between a very long, expensive path to the top or a much more pleasant trip.
Henry Ford was known to say that he didn’t need to fill his head with all general knowledge, he instead would keep access to a group of people who would have the answers to all the questions a person could have so he could focus on business. This is a great mentality to have, why should we try to know everything about everything? If we can surround ourselves with professionals in specific areas of our business we can focus on advancing our business while they do what they do.
In the property investment sector, one important piece of the puzzle is to have a quality mortgage broker. Without finance it can become difficult to advance but not every broker has the same experience or the same contacts. One broker will tell you that based on the range of products they have available to them, you cannot borrow any more. Whereas if you speak with the right broker they may find a way to make a deal happen, these are the gems.
Working with a knowledgeable solicitor is also very important. You may have found an incredibly intelligent and morally sound solicitor to work with, but if they do not have experience in the industry, or experience with the particular State’s property law (laws vary State to State), you may end up missing an important term, or condition that can have a negative financial affect to you. Finding a solicitor actually adds value for you while reviewing your contracts can be difficult, but having this connection can make a very positive difference.
When seeking advice on how to structure a property investment, or what works and what doesn’t you will find that everyone has an opinion. You need to be careful which opinion you choose to take on board. If you have an issue with your teeth, you go to a dentist so if you were looking to structure a property investment why would you speak with uncle bob? Before taking on information from anybody on your investment path find out if they know what they are talking about, and have they personally succeeded using their proposed strategy. Finding a mentor or likeminded investor can save a lot of “self learning” and heartache.