Take a look at the following 9 habits of an organised property investor. Simply start small with easy changes and then slowly add to your efforts bit by bit. Before you know it, organisation will become second nature and your property investing portfolio will be much easier to manage!
1. They know what they wantA perfectly organised property investor knows what he wants property investing to do for him. He has an outcome already firmly placed in his mind before he begins to undertake any endeavour so that any efforts he expends are directly tied towards reaching his goals.
2. They know how to say NOUsing his investing plan as a guideline, the organised property investor will turn down any opportunities that may come along if they don’t fit his particular strategies. In this way he’s not chasing after deals that may work well for another investor but which would be completely wrong for him and his particular situation.
3. They know and understand their target demographicAn organised property investor will understand what the area demographic desires and will use that knowledge to deliver the best possible returns. For example, if his property caters to a corporate clientele, he knows the features that would be most appreciated by this demographic and he provides them.
4. They’ve let go of their perfectionismProperty investing is not a science. It has an inherent risk because so much of it depends upon human nature. While the markets can be volatile, they are still fairly predictable.
Once you understand market drivers and the synergy of a marketplace you can make decisions based on those criteria however there is still no guarantee.
Rather than take no action out of fear of “being wrong” or not doing it “just right”, do everything you can to make the best decision possible with the information you have and let it rest!
5. They separate emotions from the deal
They let the numbers and the market information make the decision, not the emotional appeal of any particular deal. This allows them to spend more time on those properties which will deliver the best possible return and less time trying to make a deal “work” just because they like the house.
6. What they don’t need, they don’t ownThey know the financial returns for each of their properties. They promptly get rid of properties that don’t deliver the results they need and which are a drain on their finances.
7. They stay on top of their properties’ physical statusThe organised property investor knows that fixing a problem with their investment property before it becomes an even bigger problem is the best way to manage their properties. If they self manage they schedule regular visits and do maintenance tasks routinely. If they have a property manager they will insist on (and pay attention to) regular reports on their properties’ status.
8. When it comes to planning, they’re all about the detailsOrganised property investors have detailed plans, which provide the key information they need to make day-to-day decisions. From how much money they need to tuck into savings each and every week, to when and where they should buy their next investment property, every facet of their financial life is catalogued.
Once this information is written down it’s not tucked in the back of a drawer, never to see the light of day. No, it’s kept in a convenient place and the property investor then sets up a scheduled time to review it on a routine basis.
9. They don’t procrastinateAn organised property investor knows that time really is money and if he moves too slowly he is only hurting his chances of getting the best possible return.
He also knows that the more quickly he initiates repairs on his properties, the better his tenants will feel about him as a landlord. This leads to better tenant retention and better property condition. Dragging his feet will simply end up costing him more money - and time - in the end.
Sam Saggers is CEO of Positive Real Estate and Head of the buyers agency which annually negotiates $250 million-plus in property. Sam's advice is sought-after by thousands of investors including many on BRW’s Rich 200 list. Additionally Sam is a published author and has completed over 2000 property deals in the past 15 years plus helped mentor over 2200 Australian investors to real estate success!
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Disclaimer: while due care is taken, the viewpoints expressed by contributors do not necessarily reflect the opinions of Your Investment Property.