Everyone seems to agree that a lot has changed in property over the past few years and that many old strategies and habits don’t get the same results they once did. Despite this, many investors are making more money and having more success than they did before.
Over the years, our industry has changed, but old habits have remained – some good and some bad. Below are the four bad habits that could be holding you back as a property investor and the four good habits that you should make part of your routine, if you want to see massive success.
For years, investors have been taught (incorrectly I might add) to seek below market value deals, as a strategic necessity. I’m not saying a good deal should not be pursued, but the fixation with below market value (BMV) often means you’re looking at either the worst properties or the worst areas in which to invest. Sadly, investors often get caught in these locations. Common issues with this are:
Inability to grow and scale because the property values don’t rise as much as elsewhere.
Additional costs due to the poor condition of properties.
Low cashflow because of low demand for housing in that area.
Undervaluation when refinancing.
Finding time to search for property is an essential action for all investors. Many assume this involves checking Rightmove, then Zoopla, then On the Market and then onto commercial sites and so on. This is a massive resource drain. Not only is covering the whole market very time consuming, ‘doom scrollers’ may miss property opportunities due to human error.
I know cashflow is king when it comes to property, especially for those just starting out, but by only focusing on this, many investors miss out on the returns achievable through asset appreciation, leveraging and secondary income sources. Furthermore, many don’t invest time to understand how cashflow can grow and how this is directly related to demand.
Almost all the analysis I see from my clients and contacts measure the market conditions today. It is rare to see forecasting and projection for future growth. As you may know, areas and types of property grow at different rates and at different times, so knowing what’s hot and what’s not, is often absent.
The good news, for anyone who can relate to any of these habits, is that you can take small steps to reduce their impact and actually overcome these challenges.
Five years ago, I created the first ever relationship data process, for tracking emerging demand and growth potential for areas. This data, while complex, is actually very easy to use and understand. Results for every postcode are updated every month and anyone can access it.
Use Modern AI (Artificial Intelligence) Software Solutions to Work on Finding Leads While You Do Other Things
Time is the most valuable asset for all individuals and any businesses. In the modern world of advanced data, your ability to process and interpret what’s in that data has been transformed. Using AI and the correct data feeds, searching is now a background process and acting on a shortlist of opportunity is the key to success. A good data and AI platform is a must, to find all deals in 2024.
Once you have an investment that makes you money, your attention should turn to how much the cashflow and asset value can rise. We’re familiar with the concept of adding value, through development, planning gain and change of use, but what about other value generation? One simple and easy way to drive up income, is to focus on the activity best suited to adding value. Data and research can tell you what to do (and what not to do) to drive up cashflow and asset values, led by what the market says it wants, not what you think the market wants.
Using tools like pipeline software and integrating a business planning tool such as OGSM (objective, goals, strategies and measures) can help us all to better understand the power of data, to see what is in demand today and worth more tomorrow. By reorientating to this form of constant development, you can harness the massive growth benefits of compounding. Many, including myself, have learnt to use new data and forecasts, to both leverage our investments and ensure we have demand driving up our income from investments, year after year.
If any of this sounds familiar and you want to act on it or get started on addressing what I’ve discussed in this article, get yourself access to the Ultimate Property Dashboard and start using the data and AI I mentioned. You’ll be amazed by how easily you can harness these opportunities and eliminate the drain on your time and resources, plus, you can try it for free and make your own mind up.
Use the link to see it for yourself: search upd.ai or by scanning this QR code. The first 14 days are free!
Website/Platform: https://ultimatepropertydashboard.com/
