How to Choose the Right Property Strategy for Your Situation
You often hear and see people make money investing in property, and you would like to do the same. However, you do not know what strategy you should choose. In fact, this is one of the questions I get the most: “I would like to start investing in property, but I do not know what strategy I should go for.”
When deciding which strategy to use in property, you need to take into consideration your circumstances. A lot of people will choose their strategy based on ads they have seen on Instagram or Facebook. However, if a strategy works for someone else, it does not make it the right strategy for you. You need to choose the right strategy for your situation.
So, how do you pick the right strategy and stop wasting time or avoid picking the wrong strategy?
Here are the steps you need to take in order to choose the right strategy.
Here are the steps you need to take in order to choose the right strategy.
1. Understand the Strategies Available
You need to start by understanding what strategies exist. For example:
- What is the Rent-to-Rent strategy?
- What is sourcing?
- What is the serviced accommodation strategy?
- What is the commercial-to-residential strategy?
You need to educate yourself and understand a bit about each strategy, as it will help you pick the right one for you.
2. Know Why You Want to Invest in Property
You need to think about why you want to invest in property in the first place. Do you want to replace your income? What is your goal in investing in property? Your goals will help you pick the right strategy, as different strategies will give you different outcomes.
For example, if you have some money to invest and want a steady stream of income, you might use a strategy called BRRR, where you buy a property, refurbish it, remortgage it, rent it, and try to recycle the money to build your portfolio.
Every circumstance will be different.
3. Ask the Key Questions That Narrow Down Your Options
After you have your goal in mind, you should ask these questions to narrow down your choices and help you pick the right strategy:
- How much time do you have available?
Are you doing this part-time or full-time? - How much money can you access?
What is your realistic start-up budget? - What is your long-term goal?
Do you need monthly income, or are you building wealth? - Do you need recurring income, or can you wait for lump sums?
This is crucial for cash flow planning.
Based on these questions, you will have more clarity on the right strategy for you and how to narrow down your options.
Remember, you need to focus on your goal, why you want to be involved in property, and based on these questions and the goals you want to achieve, you will be able to pick the right strategy for you.
4. Speak to Someone Who Has Implemented the Strategy
Now that you are clearer on which strategy you want to pick, you need to find someone who has implemented this strategy successfully and scaled it. Ask them what it is like to use this strategy.
Because it looks beautiful to see people on the internet talk about big numbers, but it is important to see behind the scenes and understand whether you would like to do what they do.
For example, if you do not like calling vendors and stacking up deals, even if you think you want to do deal sourcing, you might realise that you do not want to do that. If you find out that you do not like the day-to-day work of that strategy, you need to pick a different strategy until you find one that works for you.
5. Learn Everything You Can About Your Chosen Strategy
After you find a strategy that works for you, it will be time to learn as much as possible about that strategy. Once you have done this, you will be in a position to start taking action and begin seeing results.
If you would like to learn step-by-step how to implement your chosen strategy, book a call with someone in my team. They will see if they can help you in your property or entrepreneur journey.
Best of luck.
