How To Find Your First Property Investment
Every property investor has to start somewhere. I started my portfolio by buying my first property investment after a small (five numbers) lottery win in the town where I live. Others have found their 1st property investment by other means. I’m often asked ‘how did you get started?’ and so here are my five best tips for buying that first property investment.
Someone you Know
At some point, someone you know will have been selling a property. A relative, friend or colleague will have been moving home and, all of a sudden, there is a property available that you know well. You know its history, the value and any problems with it. That makes such a property the perfect investment as you immediately know much more about it than a house you might have seen in an estate agents window. Ask the person if you are interested – you may be able to cut a deal as they won’t have estate agents or other fees to pay.
A Local Property
A lot of property investors I have met have bought their first buy to let property investment in their local area. Some even buy on the same street or in the same estate. As an investor, you are much more likely to know the values, rental potential, local schools and transport links in your own locality. It is also extremely convenient for you to manage.
Auction
Whilst some property auctions are not for the fainthearted, I have known investors who listened to others’ property investment advice and bought their first investment property at auction. Be sure that you fully understand the auction process, but you could well pick up a real bargain in the auction room.
Another Investor
If you are successfully networking with other property investors, either through property clubs or a mentorship programme, there is a chance that you will come across people looking to dispose of their portfolio. I know of investors who have picked up a good value property investment from a fellow entrepreneur needing to realise capital or review their property holdings.
Leafletting
If there is a particular street or location where you are keen to buy, then ask the residents directly. Some decent quality leaflets that you can post through the door inviting people to contact you if they are considering selling their homes can be a good way of carefully targeting a particular geographical area in which you are keen to invest.
