Let’s chat money…
It’s become standard for people to approach me and ask ‘how do I get started in property investing’.
I can go along the lines of passion. What do you enjoy doing, where do you want to invest, what do you want the end goal to be? Yet, the very biggest question I need to be answered is this… how much money do you have today and have you looked at funding options?
This is paramount to every single little thing you do in property and really will dictate where you start. How do you know what you can do if you don’t know where you are starting from?
I don’t expect to hear from the conversation-ee that they have millions of pounds. Furthermore, nor do I expect them to have a plan. All I expect is for them to have a rather good idea of what’s in their back pocket and also a vague knowledge of their borrowing power.
Get to grips with the following questions
Have you been to a broker and found out how much you can borrow for your own personal mortgage and whether you are eligible for a buy to let mortgage? How about if you borrowed within a company? Have you found out what interest rates are available to you? Have you asked around friends and family to see if they would invest in your property business? Do you know if there are any other funding options available to you?
You may not be able to get the full picture, but being able to answer question one and give a figure as to how much you have in £ today will get your property journey off on a flying start.
So, if you are reading this and are thinking ‘Still, I don’t quite get how I get started in property…’. Go and find yourself a mortgage broker or get yourself down to your bank and start asking how much you could borrow on a mortgage; this will give you a pretty good idea of how to start. If you then need any more info, come back to me!
NC
