1800 633 355
It’s finals time around the country with various sporting codes hard at it deciding which team is tops for 2014.
And that got me thinking. How would my team go in the finals of the great property investing tournament?
For starters, most people involved in property investing don’t think in terms of teams and tend to regard themselves as lone operators, prowling for great investment opportunities. But they’d be wrong, for to be truly successful in property investment we are almost wholly reliant on a team of people while never forgetting that ultimate responsibility rests with the individual paying the piper.
In sporting terms, whether we’re part of a team game (football, cricket and so on) or an individual activity (tennis, athletics) we’re totally dependent on our support staff starting with coaches and then moving on to trainers, dieticians, masseuers, physiotherapists, chiropractors, doctors, fitness coaches and on and on (depending if you’re Roger Federer or ranked 500).
Success on the sporting field relies of three main components – skill set, physical condition to enable you to execute those skills and (most important of all) a mind set that puts you in a winning frame of mind.
The big difference however, between sporting endeavours and property investing is while in any sporting contest there’s a 50/50 chance one of the participants will lose, there’s no reason why everyone who plays the game of property investing can’t end up a winner. Played responsibly there should never be a “loser” in property investing which is one of those rare activities where “everyone’s a winner”.
So who’s on your team? It starts with finance because without money you don’t get to play any part in the game of property investment. How’s your relationship with your source of finance? Do you know the name of your case manager? Do you have their after hours number or their mobile number and can you call them any time of the day? How aware are they of your investment strategy and are they sufficiently confident to back you? Do you know how much you can call on and are the terms you’re being offered the best you can get?
At BIG Property we take finance so seriously we have established our own financial arm that is fanatical about financial health checks to establish how and with whom our investors should partner before securing the best possible financial deal for our investors.
Next comes the property partner. Who do you use? Newspaper advertisements? On-line recommendations? Or do you know a friend who has a relative acquainted with a builder or developer? And, in the first instance, are you talking about buying a piece of land, a house and land package or an established development?
If it’s a land only purchase you now have to hunt down a builder, and then an agent to manage your finished property and incidentals such as someone to maintain your property, an accountant to balance your books and a tax consultant to make sure you are getting to the best possible deal from the tax office.
About now your team is starting to make an AFL side look small!
I know, because I went through all those steps and while some of them were missteps, when I found a winner I signed them up for life.
What I discovered was it was cheaper to buy one block of land if it was in a parcel of 40 blocks and it was cheaper to build one house if it was part of a package of 20 homes. The economies of scale and all that. What has evolved from my adventures is what I like to call the Big Property way, which is, in effect, our systemized approach.
I source land, where the suitability of the location has been thoroughly and painstakingly researched, I have on board builders I have used again and again, property managers who know if they look after my properties and do the right thing by me and my fellow travellers we will look after them – in short every member of my property investment “team” knows the interests of every investor is paramount.
And do you know what the secret to our collective success is? Everyone, including me, pays the same price. Sure, I charge a fee for service for the work I do, but whatever you pay for your block of land, I pay for mine and whatever you pay for the build, I pay and however much your property manager charges you, they charge me.
Yes, the property investment game, the way I play, is very much a team sport and there’s always a place in our team for another dedicated player.
Director - BIG Property Investments