Category Archives for "Property Investing"

Best Books To Read In 2018?

By Matthew Moody | Property Investing

Every year I read a TON of books.  And I mean a lot.

I’ve always loved reading and I believe the urban myth somewhere states ‘leaders are readers’ and certainly, I’ve always found that if I am stuck with a problem a book will often present with me numerous solutions.

Here's a selection from the numerous books I read in 2017 which I think will massively accelerate your success in business, sales, financial investments and health.

Recommendation #1

Delivering Happiness by Tony Hsieh

This book blew my mind when I read it.  I'd heard about Zappo's of course and their eventual purchase by Amazon but when I had some staffing issues last year, I took a deep dive into the world of co-working, company culture, team dynamics, hiring and firing, profiling and this book came flying out of the pack.

Wow - what a company first and foremost.

I knew when I was searching for books on building teams that one of the things that was highly important for me was creating the right culture

And Zappo's are renown for having one of the best team cultures in the business.

They do this through a set of 10 core values including

  • Deliver WOW through Service
  • Do More With Less
  • Create Fun and a Little Weirdness

But the thing that really glues this all together is the way the whole hiring process through to induction through to employee integration into the company is fully backed and driven by the company values.

Some crazy things at Zappo's 🙂

  1. they offer all new employees $3,000 to leave after the first 4 week induction.
  2. you have to pass the cultural test first before you even get quizzed on your specialist skills (50% of the interview process)
  3. every new employee spends at least three to four weeks in the call centre before they go to the department that hired them
  4. 10%-20% of every department's time is spent on employee team building activities
  5. you can tour their company headquarters and last year I organised a tour for a private mastermind of 50 people to tour their facility.  Awesome and Crazy are two words that come to mind.

The refreshing thing for me was that the book was easy to read; it tells the story of how Zappo's built their company and it also details how they built their core values and culture.

If you're serious about building a team and a culture, then get this today!  You'll pick up loads of ideas that you could implement right away.

Highly Recommended.  4 / 5 Stars


RECOMMENDATION #2

Head Strong by Dave Asprey

Wealth is nothing without health and this book will change the way you view light, food and drink, sleep and toxins.

In short, it's a life-bio-hack on how to perform better, work smarter and effectively think faster within a two week period.  Provided you follow the book's plan of course.

I'd heard a lot about 'bullet-proof coffee' which is what attracted me to Dave's book in the first place but what I was not expecting was the level of information, references and quotations from bona-fide genuine authoritative sources to back up his claims.

Because if you can claim that coffee can make your brain work smarter, you really do need to have tested this out in laboratory conditions.

Well guess what; they have.

But what I found more interesting was all of the other daily things that we take for granted that do impact us on a molecular and cellular level.  

Things such as the amount of mould in our food and how this affect our bodies; what do bright strip lights do to our brain and how does damp really affect the way we process information.

So for anybody that has any level of interest in how to become a better faster smarter version of themselves, I'd highly recommend you check this out.

Within 2 weeks, you could be a different man or woman!

Recommended For All Health Conscious and Life-Hackers Everywhere. 4 / 5 Stars


RECOMMENDATION #3

Unshakeable by Tony Robbins

I did debate putting this higher in my Top 5 but as you will see from the books that made the Top 3; all of them are world-class but for different reasons.

Tony's book is to all intents and purposes, a cut-down of his behemoth 'Money Master The Game' but easier to dip into and full of great advice.

The thing I always like about Tony's books are twofold

  1. you get step-by-step actions you can take
  2. Tony interviews world-class experts to get a unrivalled view on a subject

This means that when you read 'Unshakeable' you are already benefitting from the advice of people actually doing what Tony is interviewing them about - and have been mega-successful in their endeavours.

For this book, Tony interview 50 of the world's greatest financial minds and with the advice given in this book, makes it easy for anybody that has any interest of understanding how money works - and from that to achieve financial freedom.

Tony delves down into common mistakes most investors make, how to prepare for the financial maelstrom coming, how to avoid paying outrageous fees and charges on your investments and pension plan and then in the latter half of the book provides one of his playbooks on how to take these principles and distill them into every investment decision you make going forward.

I'll be honest, I'm a huge fan of Tony's but this book surprised me because of how easy it is to dig into - and in fact, I've given out dozens of copies of this to my mentees over the past year because I rate it that MUCH!

If you've not got it well here's a few more reasons why you need this book.

Once you understand how to make the right decisions, then you also need to understand how to navigate crashes and corrections in order to protect your financial freedom.  This is covered in detail with Tony wrapping up the book talking about psychology.

Now this may surprise you but when I attended 'Business Mastery' last year in Palm Beach, Florida, the entire first day was focused on psychology of business.

Why?

Because it's that important and pyschology is everything if you are going to succeed.

And by understanding the common mistakes investors make and how to avoid them, this allows you to build real wealth in the long term.

Includes a handy 22-page checklist on fortifying and protecting your wealth.

Highly Highly Recommended If You Wish To Build and Protect Your Wealth


RECOMMENDATION #2

Way Of The Wolf by Jordan Belford

I'm sure most people are aware of 'The Wolf of Wall Street' film and like him or loathe him for dubious business practices in the past which led him to being jailed, Jordan Belfort is one of the greatest living talents around who can show you how to persuade and influence people to buying a product or service.

The book is effectively a stripped down version of his popular online/live programme 'Straight Line Persuasion' and is a really easy read but filled with tons and tons of actionable content.

It's great for anybody who has to persuade anybody to buy something from them - so pretty much the entire world then!

What I liked about 'Way Of The Wolf' is how by sharing stories and case studies, it was easy to see how you could then implement it into your own business.

Now I've been selling for many years but even so, I was blown away by the amount of content that Jordan put into this book.

It's almost as good as being in the room live with him; there is that much information contained within the 248 pages.

Jordan describes the crucial 'first four seconds' and what happens if you get it wrong, how to use tonality and body language, the critical importance of state management and how to implement this all so it becomes seamless.

He then puts this into his 'ten rules for prospecting' and as I said earlier gives so much content, its rapidly becoming one of my go-to books every time I make a sales presentation of any kind!  In short:

if you are not getting enough sales, buy the book.

if you are skint or broke, buy the book.

if you want a new house or car or toy, buy the book.

if you want to crush your competitors, buy the book.

(if you've seen the film, you'll know why I just did that)

5 STAR RECOMMENDATION FOR ALL BUSINESS OWNERS & SALES PROFESSIONALS EVERYWHERE!


RECOMMENDATION #1

Traction by Gino Wickman

This book saved my life and my business too. When I had experienced significant issues in 2016 resulting in two members of staff leaving on the same day, I knew I had to change my entire business, team culture and how I managed my team.

The result after hours of searching was this BIBLE of how to really 'get a grip on your business'

The beautiful quality about this book is that it takes a dry subject and makes it absolutely compelling; so much so that you are itching to get going with your business make-over from day 1.

But hold on; as with all books it's best to take it as the author intended and whilst there are countless exercises and action items to do, I'd recommend holding off until Chapter 10 when everything is explained about how to 'get started'.

Effectively the book centres around the idea that every business needs a Entrepreneurial Operating System (R) and without this in place, a business will often lose money or even close.

The fundamental components of this model include:

  • Vision; what are the 8 questions you should ask and how is this then shared by the employees and stakeholders in your company
  • Data; how do you measure what you do through a scorecard
  • Process; what is documented can be followed, outsourced and delegated
  • Traction; you move forward by creating the big rocks (goals) and holding regular formulaic meeting
  • Issues; by reviewing these in a systematic way blockages are removed quicker
  • People: ensuring the right people are in the right seats

The book is fabulous because it's easy to start a business but what is difficult is scaling up.  And this book takes you through a process of starting to manage your team and yourself in a much more effective structured and accountable fashion.

6/5 STAR RECOMMENDATION: IF YOU BUY ONLY ONE BOOK TO IMPROVE YOUR BUSINESS, BUY THIS ONE!


BONUS RECOMMENDATION!

Cracking The Property Code by Matthew Moody

Now as this is mainly a blog aimed at people wanting to build a property portfolio, I thought it only right to end with a book that whilst published a few years back was re-released last year in its 2017 Edition.

If you're after a book that really gets down to the business of creating a property empire, how to choose your strategy, how to create an organisation, how to construct systems and processes and how to manage your team; then there is no better book out there.

But don't just take my word for it; have a look at what the guys and gals from 'Your Property Network' the leading monthly property magazine said in their review:


CLICK HERE TO VIEW THE LARGER REVIEW

======>>>>

If you are thinking about starting a property business, then do yourself a big favour and grab a copy.

If you're already in the 'property business' but not managed to extract yourself from day-to-day operations, you know what to do - grab yourself a copy.

HIGHLY RECOMMENDED BY 'YOUR PROPERTY NETWORK'


So there concludes my top books that were published last year.

I'd heartily recommend you get one or two or even all of them and set out a plan to read them diligently step-by-step.

Here's a few suggestions as to how you may do that.

  • sales
  • management
  • finances
  • Building a business
  1. Way Of The Wolf
  2. Traction
  3. Delivering Happiness

All graphics are copyright of their respective owners.

Buy a book and let me know what you thought about it.

You're a V.I.P. baby; I appreciate your time here today!

Cystal Ball

Where are My Crystal Balls?

By Matthew Moody | Property Investing

Now it has all calmed down, can we move forward and not look back in anger. There has been some incredible vocabulary used by politicians in the last week. Xenophobia, disengaged, Fear, Anger, all of these words have negative perspectives.

Surely we should be using, community, empowered, pride, tolerant as replacements as this is how we have been living in the last three decades. One UKIP MEP stated that although he would naturally be out of a job in the next few years, his political ambition to serve his constituency would not waiver, although he admitted he would need to find a different path to do so.

So where does this unrest lead us to? The FTSE is back up to ‘normal’ levels, The pound has rallied, and everyone is still talking to each other in Europe. The agenda for change is being drafted, and David Cameron will steer this ship, until a new captain can take over, we are not rudderless.

And to property …….. have banks stopped lending? Not to my knowledge. Are interest rates predicted to rise? Not in the near future, at least. Which is interesting in itself, as the economists have been predicting a rise for the last eighteen months; still not happened.

The important thing to realise, is that we can adapt. One of the things that most individuals with a bit of business sense can do, is find ways of solving problems in hand, or engineer ways around them. There is change ahead. It may not be choreographed as well as a Diversity dance act, but we will get to the other side.

And that is my point. Property investors, for the most part, will continue do what they are doing, they will follow the principles of property investment, and they will monitor and assess their goals and objectives.

All change ……

Where do you see your portfolio going? Up, down or sideways?

Let me know if I can help you in any way.

Property Investment Outlook 2016

By Matthew Moody | Property Investing

We're in uncertain times right now with a whole multitude of issues and regulations to hit the property investors pocket - but can you still make money through property?

I've been having a lot of meetings recently with clients who are interested in our hands-free HMO Portfolio Builder product and these questions and others have come up many times.

  • is this a good time to get into property investment?
  • what do you think will happen to interest rates?
  • what about the change in taxation allowances that is coming in?
  • do you think lenders will continue lending to property investors and landlords?
  • what area is the best place to buy for a property investor?
  • what property investment strategy should I do if I don't do HMO's?
  • do you think there's going to be another property crash?

and so much more.

The answer I have to these questions are the following:

Choose a Strategy

There are dozens of strategies you can follow. Whilst this is predominantly a HMO educational resource, HMO mentoring and HMO investment site; I am familiar with the numerous other strategies having been involved with and done many of them myself.

In my book "Cracking the Property Code", I describe 45 strategies that you can choose from (and I am sure there are at least a dozen more to be added) but remember; the choosing is the easy part.

If you're the type of property investor that likes to have a slice of every pie, then sure this will be more fun than the guy or gal who solidly plugs away at one HMO, then the next HMO, then the next HMO, then the next HMO.

BUT; that solid property investor with his or her main strategy will recoup the benefits in the long-run.  They'll have a more solid asset base, be more grounded in their wisdom and knowledge of their market and strategy and they'll ultimately have much more free time than the "shiny penny" property investor who flits from one strategy to another

STEP ONE: Choose Your Main Strategy​

Become An Expert

Picture this: you're in your 6th year of following your chosen strategy.  You've built up a portfolio or business which is turning over very nicely.  You've had some struggles (anyone telling you that property is easy is normally a salesman who DOES not have your best interests at heart) but you're in a stable solid position.

​You're now ready to diversify and to explore a new strategy.  This strategy may not work first of all, you may lose some money and you'll certainly gain experience but you're starting this off from a solid footing. You already have a successful and stable business in the strategy you chose to master 6 years ago.

Now picture this.  You want to get started.  You want to make money quickly. You've seen a ​course advertising how you can become a millionaire in 1 year. You go on the course, you spend money on the next course that's offered.  You go on that and then you see an advert for another thing that's saying you don't need money to invest and you can make £10K a month within 3 months.  

You're intrigued and off you pop onto that webinar, hang onto the experts every word and then start to follow what they say.  This spiral continues for some good 12-24-36-48 months until one day you decide you've spent thousands on education but you have nothing to show for it.

The lesson here is - become an expert in your chosen strategy.  Live it, breathe it, soak up all the knowledge you can, pay for a course or two, hire a mentor if you need to be held accountable (and want to fast-track your progress by 30-50%). But above all​ - know that because you chose well, your expertise will see you through the good times and the bad times as you sharpen your saw further.

STEP TWO​: Become An Expert At Your Chosen Strategy

Live The Long Game

Property investment always works best when the landlord holds onto their property for the longest possible period.

With capital appreciation in the United Kingdom proving to be strong over the last 100 years; for the person who can wait for the prize - the prize becomes even bigger and exceeds all expectations in a way that short-term fixes never can.

Most property investors do end buying a property or two​ that does not cut the grade.  And it's fine to sell these off, recoup whatever losses you made and try again.  But always beware the "shiny penny" or the "silver lining" or the "grass is greener" adage - your best interests are always served by forecasting out the future and holding onto the assets you have.

To build an asset base gives you financial security, stability, surety and a grounding that cannot be taken away.  There are certain strategies that clearly preclude this but these strategies are generally start-up strategies designed to build your war chest.​

To become wealthy through property, you must at some stage - invest in property and then hold it for the longer term - 10, 20, 30  years or more.

STAGE THRE​E - Build Your Asset  Base And Hold On For The Long Game

In future blogs, I will discuss some of the other questions raised by my clients (and any other's raised by this blog) but for now, I'd encourage you to review where you are right now, ensure you are following ONE proven strategy that will build your asset base and work on becoming an expert in this strategy.

We cannot predict the future but we can certainly ride the storms ahead through careful planning and the accumulation of cash-flow positive property investments.

I recommend HMO's as your chosen cash-flow strategy and to gain the very best in knowledge to set you up to succeed, I'd recommend you grab one of our free cheat sheets and start your journey today - invest in HMO's, invest in your future.

Show Me The Money

By Matthew Moody | Property Investing

I love this clip and I think anybody serious about property should love it too.

After all, what is anybody in property investing for – unless they want a little piece of the pie.

We don’t go through all the heartache, the blood, the sweat, the tears, the disgruntled tenant, the broken toilet, the boiler and central heating going on a saturday night in december, the kitchen flooding, the non-paying obtuse tenant, the tax return, the worry, the stress, I could go on and on and on…

No, we don’t go through all of this for the good of our health.

We do it so that one day we can see the money (cashflow) coming trickling through, then roaring through.

Of course, if you have HMO’s, you’re pretty much going to see this roaring cashflow straight away – but always remember to keep some in reserve for a rainy day (!).

Enjoy this classic clip and make sure that you ask somebody everyday to “show me the money”.

“Not in my back yard” property investing

By Matthew Moody | Property Investing

There comes a time when people need to stand and be counted, yet often a lot of what seems to come across from the media is talk about how the vunerable in society are being used and that we should all stand against the vultures of capitalism.

A case in point merits further explanation on a place dear to many seasides visitors, Southend.

Apparently developers are moving in on large victorian houses which front the sea, trying to buy them and then converting them into flats or worse still – multiple-occupancy homes. (I clearly say that tongue in cheek as this blog is all about HMO’s and more!).

An MP bemoans a company that leaflet drops targetting these areas (one elderly gentleman threw his in the bin), a local says – why don’t they refurbish the high street and the office blocks that have been left standing – lets have a moratorium on new-buildings.

Alas, I fear that none of these folks in their misguided attempts to do “the right thing” fully understands the meaning of “not in my back yard” and here is where it shall be explained.

Not in my back yard actually stands for:

  • No progress
  • Idiotic decisions based on emotion or money; not fact nor reason
  • Many cooks poking their noses in, getting paid and moving on
  • Bureacratic planning laws impeding progress
  • Yesterday’s property left to rot whilst tomorrow’s property is yet to be dreamt up – at the expense of today’s property being under lock and key.

Everywhere you see it – whether it be a new block of flats, a neighbours garage, a schook, a runway or even a wind-farm.  The people that extoll the “not in my back yard” mantra are the people that are impacting the rest of society – not the other way around.

Harsh words perhaps but lets face the facts.

  • councils approve planning applications based on their own “local” plan.  This is often put together by “professionals” and “amateurs” who have no overall strategic overview over what they are agreeing too.
  • the grants offered to turn empty derelict buildings into modern tenanted buildings are infrequent and often poor.  And even if you do get them, they often come with many onerous terms and conditions which hampers, rather than helps.
  • the focus on a quick buck is always the media angle on this but why would a development company enter into a development that lost them money?  That just wouldn’t be good business sense.
  • the British-way seems to be more and more to be jealous, suspicious or plan envious at anybody who is running a successful business.  Why is that?  If somebody has taken massive action, then all credit to them.

So, lets all look to the future and work together to figure out what needs to be done at a local and national level to turn this once great country of ours, back into the bastion of civilization and respect that it used to be.

Rather than “opposition” groups, lets have “co-operation” groups; rather than “not in my back yard” groups, lets have “change for the better” groups.

Property Investment Outlook 2015

By Matthew Moody | Property Investing

We're in uncertain times right now with a whole multitude of issues and regulations to hit the property investors pocket - but can you still make money through property?

I've been having a lot of meetings recently with clients who are interested in our hands-free HMO Portfolio Builder product and these questions and others have come up many times.

  • is this a good time to get into property investment?
  • what do you think will happen to interest rates?
  • what about the change in taxation allowances that is coming in?
  • do you think lenders will continue lending to property investors and landlords?
  • what area is the best place to buy for a property investor?
  • what property investment strategy should I do if I don't do HMO's?
  • do you think there's going to be another property crash?

and so much more.

The answer I have to these questions are the following:

Choose a Strategy

There are dozens of strategies you can follow. Whilst this is predominantly a HMO educational resource, HMO mentoring and HMO investment site; I am familiar with the numerous other strategies having been involved with and done many of them myself.

In my book "Cracking the Property Code", I describe 45 strategies that you can choose from (and I am sure there are at least a dozen more to be added) but remember; the choosing is the easy part.

If you're the type of property investor that likes to have a slice of every pie, then sure this will be more fun than the guy or gal who solidly plugs away at one HMO, then the next HMO, then the next HMO, then the next HMO.

BUT; that solid property investor with his or her main strategy will recoup the benefits in the long-run.  They'll have a more solid asset base, be more grounded in their wisdom and knowledge of their market and strategy and they'll ultimately have much more free time than the "shiny penny" property investor who flits from one strategy to another

STEP ONE: Choose Your Main Strategy​

Become An Expert

Picture this: you're in your 6th year of following your chosen strategy.  You've built up a portfolio or business which is turning over very nicely.  You've had some struggles (anyone telling you that property is easy is normally a salesman who DOES not have your best interests at heart) but you're in a stable solid position.

​You're now ready to diversify and to explore a new strategy.  This strategy may not work first of all, you may lose some money and you'll certainly gain experience but you're starting this off from a solid footing. You already have a successful and stable business in the strategy you chose to master 6 years ago.

Now picture this.  You want to get started.  You want to make money quickly. You've seen a ​course advertising how you can become a millionaire in 1 year. You go on the course, you spend money on the next course that's offered.  You go on that and then you see an advert for another thing that's saying you don't need money to invest and you can make £10K a month within 3 months.  

You're intrigued and off you pop onto that webinar, hang onto the experts every word and then start to follow what they say.  This spiral continues for some good 12-24-36-48 months until one day you decide you've spent thousands on education but you have nothing to show for it.

The lesson here is - become an expert in your chosen strategy.  Live it, breathe it, soak up all the knowledge you can, pay for a course or two, hire a mentor if you need to be held accountable (and want to fast-track your progress by 30-50%). But above all​ - know that because you chose well, your expertise will see you through the good times and the bad times as you sharpen your saw further.

STEP TWO​: Become An Expert At Your Chosen Strategy

Live The Long Game

Property investment always works best when the landlord holds onto their property for the longest possible period.

With capital appreciation in the United Kingdom proving to be strong over the last 100 years; for the person who can wait for the prize - the prize becomes even bigger and exceeds all expectations in a way that short-term fixes never can.

Most property investors do end buying a property or two​ that does not cut the grade.  And it's fine to sell these off, recoup whatever losses you made and try again.  But always beware the "shiny penny" or the "silver lining" or the "grass is greener" adage - your best interests are always served by forecasting out the future and holding onto the assets you have.

To build an asset base gives you financial security, stability, surety and a grounding that cannot be taken away.  There are certain strategies that clearly preclude this but these strategies are generally start-up strategies designed to build your war chest.​

To become wealthy through property, you must at some stage - invest in property and then hold it for the longer term - 10, 20, 30  years or more.

STAGE THRE​E - Build Your Asset  Base And Hold On For The Long Game

In future blogs, I will discuss some of the other questions raised by my clients (and any other's raised by this blog) but for now, I'd encourage you to review where you are right now, ensure you are following ONE proven strategy that will build your asset base and work on becoming an expert in this strategy.

We cannot predict the future but we can certainly ride the storms ahead through careful planning and the accumulation of cash-flow positive property investments.

I recommend HMO's as your chosen cash-flow strategy and to gain the very best in knowledge to set you up to succeed, I'd recommend you grab one of our free cheat sheets and start your journey today - invest in HMO's, invest in your future.

An Outsourcing Case Study

By Matthew Moody | Property Investing

Managing Yourself or Outsourcing to The Professionals?

I’m known for being hot on systems but if you are just starting out or if you have properties yourself, what can you outsource and what should you keep in-house?

When I first got started, I managed everything:

  • Marketing
  • House administration (ie utility bills, insurance)
  • Tenant administration (ie rent, paperwork, viewings, moving in/out)
  • Accounts receivable
  • Account payable
  • Maintenance
  • Business development
  • Book-keeping & Accounts

And a whole heap more that took time and effort to do.

And the thing is, nobody is ever going to be great at everything – it isn’t possible.

It took me two months to figure out that it would be better for somebody else to take on the jobs that I wasn’t good at and let me focus on the things I was good at.  It actually took over five years to properly set up our systems and processes to allow me to hand 90% of the business to outsourced and in-house staff.

Here’s how I did it:

Year Outsourced Task Why
Year 1 1) Annual accounts and tax returns straight away.

2) Gardening & cleaning after 6 months

3) Maintenance

1) Whilst I understand numbers, I haven’t got the energy to do them myself.

2) By doing it myself, I knew the time and standards required

3) No enjoyment so why do yourself?!

Year 2 1) A Property managed as a test 1) First manager had conflict of interest; second manager rescued things!
Year 3 1) Marketing for tenants online

2) Book-keeping

3) Management of portfolio

4) Opened up lettings business

1) Tested a PA on marketing tasks.  Then outsourced lead generation.

2) Moved to accountants.

3) Gave management to manager.

4) Systems and people already in place so made sense to expand where we could.

Year 4 1) Developed systems in all areas

2) Expanded lettings business

1) Expansion = slippage without standards.  Systems created for consistency in portfolio

2) Systems = Expansion.

Year 5 1) Accounts Payable / Receivable

2) Bad debts

3) Office

4) Apprenticeships

1) Outsourced to Experts who are unbiased and professional.

2) Still trialing different companies.

3) Home and Work.

4) To assist with administration/customers

This is only a snapshot but allows you to follow a logical progression and consider how your business can benefit from outsourcing.

Outsourcing and modifying systems never changes but you can quickly get to grips with the right ones for you by understanding the organization you need to run your business for you.

We cover this and much more in many of my programmes as well as in my book.  For more 1-2-1 assistance, why not work work directly with me to build your systems and processes to world-class level in just 6-12 months.  Look at the Mentoring section for more details.

Retire Through Property Investment Within 10 Years Pt 1

By Matthew Moody | Property Investing

Property investment can be a complicated process especially if you are a novice in this area of investment. Investing in property is not a get rich scheme like other people may think. It requires you to gain knowledge on the foundations of investment and property; and then to learn the strategies to effectively put them into practice.

This means that you must be experienced in the techniques, systems and strategies that make property investing safer for you to try and ensure that your chances of everything working out are much higher. If you jump right in – you will get burned. You have been warned!

The following are tips I heartily recommend you consider to lead you on your way to smart property investing:

1. Plan your goals.
Consider your long term and short term goals if it is either for retirement or making money in property investment. Before deciding to invest a large amount, meticulously plan everything starting from choosing the property to determining the perfect location. Consider whether you need a company to trade through. Set up these entities and put your plan in place.

2. Educate yourself.
Before you dive in; ensure you research and educate yourself. Soak up all of the information that is freely out there but also invest in the latest books, courses and audios that focus on your particular strategy so that you can become the best you can be – without having the experience of doing it yourself. Once you start investing in property, then it is extremely important that you invest in continuing your education and learning new tactics and tips that will help you in your business.

3. Choose an area.
The investors who focus on certain areas are the investors who in the long-run benefit. Following a scatter-gun approach may mean that you end up with more properties but as they are very far apart you will risk inefficiencies in management, maintenance and travel. Choose and focus on one area and make that your golden goose.

4. Determine your chosen strategy
Do you want to refurbish and flip properties? Do you want to rent out to multiple people? Do you want to focus on the social housing market? Do you want to buy small 2-up-2-down properties and put in long-term tenants? Have focus and do not deviate.

5. Develop a power team.
In any financial venture, it is important to ask the help of experts and financial institutions for wealth and knowledge. The proper assistance is the key towards investing. You should always have a power team comprising of experts who can lend their expertise and professionalism.

6. Rent the property.
If you have a vacancy – you’re losing money! Always always always have your properties rented out! This is the only way to have a steady income. For every day your property isn’t rented is more days vyou losing money. Ensure you are using the most up-to-date tenancy agreement to protect yourself and your tenants.

7. It’s the long game that counts.
Property investment is a long-game and whilst you can make good short-term profits; you need to look out 10-20 years in the future. It’s essential that you are consistent and persistent. You have to follow and stick to your plan because you can become wealthy overtime. You may have a boiler fail one year that could wipe out most of your profits. But over 10 or 20 years – what will the overall house value have risen by? Planning out the future is the key to property investment.

8. You must learn to analyse properties quickly.
You will acquire this skill over time through experience. However do not get yourself caught up in the trap of “analysis paralysis” or literally overthinking everything.
Ask significant questions such as how much the property is really worth, can I get a discount off the asking price, what will it rent out for, how much will it cost me to convert it etc?

9. Negotiation skills are critical.
In property investment, the difference between a good deal and a great deal can often be just a few percentage points. Learning the art of negotiation is thus a skill that will set you up, not just for investing in property but also for wider life. Learn all you can, take some courses and then practice, practice and practice some more.

10. Build a business
Investing in property is not like investing in shares. You need to develop a business over time that serves you and your lifestyle in the best possible way. You should focus on the different elements of running the business. Whether its sale and marketing, operations, research, finance or governance; building a solid business will prove to be the answer to longevity and stability for you.

Property investment can be a risky venture if you get it wrong. Therefore, it is necessary to follow the correct strategies to ensure that you are venturing down the right path.

With these skills in place, you can therefore plan out the next 10 years and how you can retire through property.

There are many plans you can choose but if your aim is to “retire” from a day job, then property investment can be the way to do this slowly but surely.

Watch out for Part 2 coming soon where I take you through two examples of how you can effectively “retire” from property within 10 years.

Recession-Proof Cashflow Strategies

By Matthew Moody | Property Investing

In today’s market with uncertainty only a capuccino away, interest rates potentially on the rise, rumours of a capital crash costs seemingly doubling over night, it is crucial that you implement cashflow strategies into your portfolio.

But what is cashflow and how does it impact me?

At its very basic, cashflow is the money that you have left after all of your income has come in and all of your expenses have gone out.  It can be very easy to overlook when things are doing well – but when they aren’t, it’s crucial that you focus on ensuring a positive return at the end of every month.

Cashflow Strategy 1: Rent Your Properties

This strategy is very simple but you’d be surprised at how many landlords allow one of their properties to become vacant.  This may even be you – do you have one, two or more vacant properties right now draining your cashflow?

If so; your immediate priority should be to get this rented – even if you have to take a short-term hit.  By this I mean, if you have lower the rent below what you really want in order to get your property filled – then do it.  I’ve taken hits of £50 to £200 on a month sometimes to get a property full but this short-term approach will ultimately serve you well as the added cashflow (even if it is slightly negative) will ensure that the portfolio as a whole should be cashflow positive.

Top Tip: A lot of landlords now are using the Local Housing Allowance to boost rents because often, they will pay more than a private tenant – such is the demand for social housing now.

Cashflow Strategy 2: Manage Your Expenses

This one is crucial and could make or break you very quic

Every expense needs to be justifiable and beneficial to your long-term aims.  It is also worth reviewing all major expenses at least quarterly to investigate what you can reduce.

So, perhaps your long-term aim is to buy 3 properties this year but so far, you’ve only bought one but you’ve been to 4 networking sessions a month.  STOP!

Networking is highly beneficial but it needs to be tempered with the right objectives – for instance, I generally allow around £100 in expenses for every networking meeting I attend outside of my immediate local area (20 miles or less) because this is the true cost after mileage, parking, subsistence, networking fee, drinks and kebab on the way home.  You get the picture.

So far this year, I’ve saved over £250 per month by switching my utilities to another provider; £50 in subscriptions I never used and another £150 through cutting out some networking sessions/meetings that were not productive.

Top Tip: Set a target for yourself of £100 savings and see how easy it is to reach this figure.

Cashflow Strategy 3: Lease Options

This is another way in which you can release additional cash flow from your properties.

The brilliance of this strategy is that the tenant you are appealing to is somebody that ultimately wishes to purchase the property from you.  They are highly unlikely to default, they’ll normally pay over market rent plus they’ll give you a nice deposit of 3-5% of the purchase value when they move in and they’ll pay around 20% every month in additional rent payments towards their deposit.

That attached to their longer-than average tenure (so no voids) together with their willingness to look after and maintain their new home means that this strategy is already starting to be implemented by many savvy investors.

Why This Strategy?

  • Larger Deposit
  • Above Market Rent
  • 20% Additional Rent Payments Towards Deposit
  • Long-Term Tenants

Top Tip: Advertise for Rent to Own clients FIRST before going and purchasing a house.  This way, you are secure in the knowledge that you have a number of leads that you can offer the property to.

Cashflow Strategy 4: Mixing It Up

Look at ways in which you can mix up the rental income from a particular property that you own or are considering buying.  You don’t just have to have one income coming in per property – you could generate multiple incomes from residential and commercial clients.

You can make substantial returns from small shops with flats above them, dividing a larger property into flats, getting planning permission for a corner plot build, renting out garages or parking spaces, providing corporate or short term lets – the list is endless.  You just need to sit down and think of some ideas outside of the box.

Here’s one I am currently trailing which is working great.  I own a lot of large detached houses with garages.  I’ve been renting these out successfully for the last couple of years for people who want to store a classic car, a sought-after motorbike or just general household junk.  I’m getting £20 to £40 per month for each garage – it’s not a huge amount but I’ve just increased my yield by up to £480 per year!

Top Tip: Look at any unused space in your property or garden and figure out what you can use it for.  We’re considering turning an old out-building into a small flat at the moment.

Cashflow Strategy 5: Sourcing

This is for a time-rich person who can go out there and start doing some deals.

Perhaps you haven’t got the funds to buy right now; perhaps you’ve got a good marketing system going and too many leads to know what to do with them, perhaps you want to build some cash up before you get investing yourself.  Either way, sourcing property for other buyers is big business.

You can do this in a number of ways:

  • Sell on unqualified leads
  • Sell on telephone qualified leads
  • Qualify and Package a deal
  • Package a deal with “lock-in” agreements and financing

All of these will give you varying levels of fees from £50 up to 3% of the property’s value at the top end.  It’s possible to make a very good living just sourcing and passing through deals to other clients.

Top Tip: Focus on one particular type of sourcing and become very good at that.  A niche market will always outperform a broad market so keep it focused and the customers will come.

Cashflow Strategy 6: HMO’s

For me, the holy grail of property investing and where the real cashflow returns are always made.

Take a property and rent it out by the room to young professionals.  You can expect to double or triple your yield instantly and the good thing is you can even do this on small 3 bed houses.

Let’s look at an example:

3 bed end terrace worth £125,000 with 3 bedrooms (2 doubles, 1 single) and 2 reception rooms.

What I would do is rent out four rooms, keep one aside as a communal area and take rental income of £1472 to £1645 per calendar month.  Take approximately £100 per month per tenant on bills and on an average 85% gearing, your monthly cashflow would be £497 to £670 per calendar month!

A lot of people believe that its hassle to run HMO’s and I have two comments on this.

Firstly, is it worth the hassle to take a 3 bed terrace from a 5% to a 16% yield?  I think so.

Secondly, it does take some time and effort to set up in the beginning but once you have a HMO running, it’s no more than a couple of hours per week per house.

Top Tip: Buy a 2-storey property with 4 bedrooms and 2 reception rooms giving you 5 bedrooms to play with for less than £200,000 and you will make at least £500 per month minimum.

Summary

Property investors have always been in the market for the long run.  But why not make great cashflow at the same time?   Ignore the negative press, lenders tightening up loans and the testing times ahead.

Instead, work on your cashflow in the next 12 months and keep your properties ticking over, then by the time of the next property boom, you’ll be a very wealthy player.

In the words of Jerry Maguire “show me the money” and the cashflow will keep you going.

Show Me The Money

By Matthew Moody | Property Investing

I love this clip and I think anybody serious about property should love it too.

After all, what is anybody in property investing for – unless they want a little piece of the pie.

We don’t go through all the heartache, the blood, the sweat, the tears, the disgruntled tenant, the broken toilet, the boiler and central heating going on a saturday night in december, the kitchen flooding, the non-paying obtuse tenant, the tax return, the worry, the stress, I could go on and on and on…

No, we don’t go through all of this for the good of our health.

We do it so that one day we can see the money (cashflow) coming trickling through, then roaring through.

Of course, if you have HMO’s, you’re pretty much going to see this roaring cashflow straight away – but always remember to keep some in reserve for a rainy day (!).

Enjoy this classic clip and make sure that you ask somebody everyday to “show me the money”.

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