A number of people who have an interest in property are trying to focus on too many strategies at the same time.  This is a common theme among property investors and developers because there are so many great strategies out there within property. There are strategies such as multi let, Rent2Rent, serviced accommodation, buying properties that you can refurbish and flip on or convert into HMOs, commercial conversions, land development deals, direct to vendor. There are many different strategies out there that you can focus on.

 

It is important once you are starting out as a property investor that although eager to try out all the wonderful strategies it is imperative you focus on one or two strategies otherwise you will find yourself dabbling and not progressing in any of the strategies as you are stretching your time to thinly. Generally as an investor we all want to focus on obtaining high cash flow in order to cover living expenses as quickly as possible.  Once this is covered you can decide to focus on making lump profits by investing time and money through land developments and commercial conversions. However you only have a limited time therefore it is important you get very focused on your primary strategy. Depending on your personal situation and what is important to you along with the amount of time you have, it may be possible that your primary strategy may be a high cash flowing strategy like, Rent2Rent, multi let or serviced accommodation.

 

The positive point for such a strategy is you do not need any money for mortgage deposits, or credit checks as a number of deals are done direct to vendor. You do not have to go through the whole buying process of finding a property, putting in an offer, then going through the legals, searches and exchange and completion which can take a few months. You can decide to focus on a strategy where you book a number of viewings with your local lettings agent and could have an offer accepted by the weekend; because you are only managing the property or you got a corporate let you could in which you could have the keys within a week or two. The only issue here is you are not owning assets you are managing assets. However it is a good strategy to get started because from one Rent2Rent deal you could potentially be making £500-£1500 pcm net profit per deal.  If you took 2-5 deals of that nature maybe for some investors that provides you the ability to get out of employment or go part time and be able to cover your bills, mortgage and food expenses as well as pay off bad debt. In such a position it would provide you with your time back which can then allow you to focus on other strategies within property.

 

Your second strategy could be larger deals like land development or commercial conversions which are a longer waiting game and can take long to find the deal along with undertaking the negotiations, as well as the process of purchasing and undertaking the conversion so you may not have profit for the next couple of years. Therefore it is imperative to understand what is important to you and ensuring that you stay focused on your chosen strategy. Whatever strategy you decide to do you will have to do some research, speaking to other investors, get to know your local area, go and meet agents and getting yourself to networking events and understanding what the demand is like in your area. Once you have 2-5 deals executed you are up and running. However it is important that you do not get distracted with all the other strategies because if you wish to do so there will come a time where you would be able to do all the strategies however you are not able to do so all at once, and all at the same time. Remember let’s focus and be the best within our choice of strategies! Thereafter we can diversify as we become stable within our present strategy.

 

To do so effectively we need to spend 80% of your time on your primary strategy. Thereafter spend 20% of our time on our secondary strategy which may be reading books, looking at deals, building relationships with agents. Thereafter we have to commit to a certain amount of time per week that we can apply to our property business. It may be 10 hours or 30 hours. If we have 10 hours in our week that we can allocate; 8 of those hours we would spend on our primary strategy and then only two hours of our time on our secondary strategy. One of the highest result areas for property investors relates to finding deals, analysing the deals and putting in the offers. Ask yourself are we doing enough viewings, are we allocating enough time to analysing deals and potentially re evaluate whether we can allocate more of our 80% of allocated time to finding deals rather than spending the time on other low income generating tasks that are keeping us preoccupied.

 

Lets focus on our primary strategies!