Sound strategy starts with having the right goal 🔥
“A vision and strategy aren’t enough. The long-term key to success is execution. each day. Every day.” Richard M. Kovacevich
Last week we discussed how to set goals. This week, we take a look at why your goals are vital and how they lead directly into your strategy.
Your property investing strategy will be determined by your goals. Here are some questions to ask to help you determine your strategy.
Do you need lots of money? (Capital)
Do you need regular monthly income? (Cash-flow)?
Or a combination of both? (Greedy :-))
Now if you are anything like me, you went for I am guessing you went for #3! Who doesn’t like a nice steady flow on income combined with the odd lump sum to top up the bank account!
The capital strategy refers to a FLIP strategy. This is where you’d buy a distressed property, fix it up and sell it and make a tidy profit (with any luck!)
The cash flow strategy is all about BUY TO LET. You buy a property, fix it up and rent it to a tenant who pays you timeously and takes good care of your property. Yes those kind of tenants DO exist…remember to leverage your letting agent to find the right tenant to make this strategy work.
As you can see, these strategies require slightly different skill sets. If you are starting out on your investing journey, determine your strategy then build that skill set. Once you have mastered it, move onto the next skill.
Ask other property investors what their strategies are and find out why they chose that particular strategy. Find out if they have any tips or tricks to share with you. Leverage the power of a network to fast track your progress.
If it all sounds quite overwhelming, take a deep breath and remember that baby steps in the right direction always get you to your destination!
*oh and refer to my previous blogs to read up on Buy to Let and Distressed Properties, I got you covered!