Property Investment barriers

The property investment process seems complicated and may be overwhelming for first time investors. The perceived complications and challanges may include:

• Lack of Time
• Fear of the unknown
• Difficulty saving a large enough deposit
• Difficulty covering the monthly repayments

Furthermore, property investing can become all consuming. It can, if you allow it, take over your life. There is a great deal to keep track of and it involves paperwork and bookkeeping. It can all be daunting at first and there is a lot to juggle. But fear not! There is a lot of help out there, for example: Real Estate from Investopedia. Once you have the right people and resources in place you will find it all quite manageable.

To really benefit from property investment and generate long term wealth you need to educate yourself. With the right knowledge and experience you can navigate this risk and create incredible returns. A popular strategy is to create or join like-minded individuals in a Property Investment Club.

Property Investors Clubs

A property investment club provides significant buying power to members. It is an excellent strategy for first time property investors to get into the market as it makes property investment accessible to those who have not yet been able to save a sufficient deposit or are unable to cover the bond repayments with their own funds. By using an investment club the financial burden is shared amongst the involved members of the club. Banks also like to spread their risk and the investment club are therefore attractive as the risk is spread over the members of the club.

The investment club can have as many or as few members as you like. The advantage of having many members is that the buying potential increases and that less capital is required to be contributed up front to invest. The disadvantage is that each member owns a smaller share of the investment and that there are more decision makers to involve along the way. It is therefore highly recommended that the right balance be found that is suitable to the investment strategy of the members

Of course there are a number of very important considerations when setting up the investment club such as deciding on the members; choosing the investment vehicle/entity; putting a shareholders agreement in place; the investment strategy; the financing and the exit strategy. Where to start? How about with this: Start Your Business / Club – Box Deal

Summary

To overcome the barriers of property investment:

• have the right people and resources in place
• educate yourself to navigate the risk and create incredible returns
• start an investment club and make use the incredible buying power to get into the property market

What’s to come

In the next communication we will explain how to safely grow your property portfolio over time exponentially without the need to put additional cash into the investment. This is the secret to generate long term wealth and creation of a passive income stream that can ultimately bring you financial freedom.