property business Archives - Dr Javaid Kiyani

In the property business you can either do very well and live off the profits for life, or end up bankrupt if you don’t follow some basic rules and principles.

When you start investing in property you need to learn how to do at least four things very well:

1. You must be able to find property deals which will make you money. You need to be able to distinguish between more profitable property and less profitable property, know your locations and learn to distinguish between less profitable and more profitable neighbourhoods.

2. You need to learn how to raise finance. You will not be able to buy property if you do not have access to suitable funding.

3. You need to learn how to distinguish between a property that can be repaired for very little money and quickly resold, and a property which could become a builder’s nightmare. Never get emotionally involved in a property purchase. Always look at the numbers and only buy if the numbers work for you.

When dealing with builders and employees always ensure that you are on the right side of the law. Complete the correct paperwork including planning consents and building regulations where applicable.

4. You need to learn how to flip property. Ensure that you have other investors in place that may be interested in your deals. Also, have several estate agents who you can count on to re-sell your projects for you.

The every day role of an active property investor involves at least the following:

o Finding new lenders, tenants and home buyers.

o Locating and buying new properties.

o Dealing with solicitors, accountants, architects, builders, financiers

o Collecting rents.

o Dealing with staff and employees.

o Dealing with local and national newspapers when advertising your services either as a property investor looking for property to buy or as a landlord looking for tenants to fill your property.

Don’t underestimate the amount of time it will take you to set up a successful property business. Property investing is a real business and if you shirk your responsibilities especially earlier on, you will not last very long in what is in fact a very competitive marketplace.

Learn from other property investors especially those that have been active through several economic cycles. Try to spend time with others who are more successful than you and emulate their techniques and strategies to ensure that you too become successful in what can be a very lucrative business for you.

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One of the best methods to find below market value property is through advertising. Placing classified adverts in your local paper should be part of your overall game plan to locate motivated sellers.

A motivated seller is basically someone who needs to sell his/her property very quickly due to circumstances beyond his/her control.

These circumstances could have arisen through for example divorce, death or debt.

When anyone experiences any one of the above, they may be ‘forced’ to sell their house and more often than not will need to sell very quickly. It’s this speed of sale that is more important to the seller than the final price achieved. This is why a sale via an estate agent may not be the best option for the vendor of the property.

These motivated sellers often turn to adverts in local newspapers to look for prospective purchasers of their property. If you’re not advertising in that paper, you could be missing out.

If you are financially constrained, don’t buy a half page colour advert! Try a small black and white advert first. I’ve known simple monochrome adverts to work just as well as their colour equivalents.

Test the market by changing your headline every week until you find one that works best for you.

When first deciding on the wording of your adverts, it is best to look at what your competition is doing. Try and find adverts that appear every week and emulate their style. These adverts obviously work otherwise they wouldn’t be used over and over again.

One thing to try would be to literally ‘copy’ a successful advert that appears every week. All you need to do is change the contact number at the bottom of the advert. Done effectively, you will ‘legally steal’ half of the original advertisers market!

When it comes to advertising in the paper, please be aware that success will not come overnight. You need to be persistent in your efforts, and continually test your strategies.

Also, an advert that may work very well in one paper may be a dud in another. You can avoid making expensive mistakes by continually trying different variants of your advert. I can’t stress this enough.

Once you have a successful advertising strategy, you will find that you are dealing primarily with motivated sellers. This will enable you to grow your property business very quickly and with very little of your own money.