The 4 Biggest Challenges You’ll Face Investing In Property
It drives me mad!
You wouldn’t believe how many people simply don’t invest in property because they think they can’t.
You see, I’ve trained thousands of South African’s on how to invest in property, so you can believe I’ve heard them all!
And after spending so much time in front of aspiring property investors, and listening to all the problems they put on the table, I’ve noticed something really interesting…
There are a few specific problems that seem to come up time and time again!
Four problems to be exact.
I’d go as far to say that these reasons are probably the four biggest challenges you’ll face when investing in property.
But today that changes!
Because I’m going to show you how to deal with them once and for all.
Let’s get to it.
The Four Biggest Property Problems You’ll Encounter
Property Problem #1: “I Don’t Have The Capital”
People who give up on the property journey are stuck in the mind-set that they need their own money for a property deal.
This is a myth.
In most of the deals that I do, I never use my own money. I always leverage something called OPM (other people’s money).
To overcome this obstacle, you need to change your mind-set and believe in abundance of money.
There is more than enough money in South Africa for any deal you can think of.
There are millionaire and billionaire investors who are dying to invest in a secure asset like property.
Remember, investors are looking for one thing: A good return.
If you find a good deal, one that promises a good return, you’ll have no problem finding investors.
Don’t waste your energy focusing on how you’ll get the money.
Focus on finding the deals, and the investors will find you.
Don’t forget, this is a business where you’re providing a service to an investor. You’re not looking for charity or begging for scraps, you’re providing investors an opportunity to increase their returns and build a stronger business.
Property Problem #2: “I Don’t Have The Time”
Unfortunately, this is one of the most common excuses and a personal pet hate of mine.
The funny thing about life is that we don’t all have the same opportunities and resources.
Some people are born with a silver spoon in their mouths and some people are born in the depths of poverty.
Life isn’t fair, but the one thing we do have in common is the amount of time in the day.
Everyone has the same 24 hours and that is universal, the only difference is that successful people utilise their time better.
Most people in the property game are still fully employed, which is a good thing because it helps them get finance from the banks.
In order to free up your time you need to create systems and processes.
Amateurs focus on tactics, whilst the professionals focus on systems and processes.
The property game doesn’t happen overnight and requires you to plan your week ahead of schedule. If you don’t have enough time, then you need to sacrifice an hour of sleep every day.
Wake up an hour earlier and hunt until you find a good deal.
Spend time over the weekends going to show houses and building relationships with Estate Agents.
At the end of the day you’ll always have time for the things that are important to you.
You’ll either make a plan or you’ll make an excuse.
So, if you don’t have the time for property, it means that you have not prioritised property.
If you want the results, you’re going to have to reprioritise your personal agenda.
Track your time for two weeks and see where you’re spending your time. Determine what you can delegate, where can you save & reinvest time, and how you can make it easier for yourself.
Profitable property investing takes time, and the only place that can come from is you.
Property Problem #3: “I Don’t Feel Like It”
Most people want the results until they realise how much hard work goes into the property journey.
I’ve seen it countless times, where a person is fired up and hungry for deals… A few weeks pass and they realise it’s tough and they slowly fall back into the routine of their day-to-day life, forgetting about the reason why they started and accepting mediocrity as the status quo.
It’s a sad thing to see, and unfortunately I see it all too often.
To overcome this, you need to review your goals, vision and your ‘why’.
How serious are you about this?
Because it’s a hard, lonely journey and if you don’t have a strong enough purpose behind it, it’s easy to lose focus and fall behind.
Make sure you know what your ‘why’ is and that you have an accountability partner who will not let you drop your dreams when the going gets tough. This can range from a spouse to a partner and even a friend.
Property Problem #4: “What If I Fail?”
Most people have 9-5 jobs and the idea of investing is daunting.
They often ask themselves, “What if it doesn’t work?”.
It’s natural to not have the confidence in the beginning, but what you have to understand is that many other people (with less skills and resources) have done it, so why can’t you?
In order to grow your confidence, you need to do the following four things:
You need to educate yourself.
Many people have done it before, ask them what they did and how they did it. You’ll learn about the dos and don’ts of property investing and they can give you the confidence to act on a deal based on their experience.
There are also tons of products in the market that can protect you against most of the risks in property.
For example, you can get rental insurance that’ll protect you against voids or non-paying tenants.
You can also get building insurance that’ll protect you against things like vandalism, fires, damages etc.
You can always protect yourself, but remember, you don’t know what you don’t know.
In order to protect yourself, you need to educate yourself.
You need to join a supportive network.
The people in our lives have an incredible ability to lift us up and bring us down.
In order to go through this journey you need to be surrounded by people who believe in you.
Otherwise, you’re fighting an uphill battle alone and it’s just a matter of time before you give in to the pressure.
You’ll also need specific experts in your team. I call this your power team.
For example, you don’t need to know how to evict someone, but you do need an eviction attorney on your team who will know the process inside out.
Make sure you build a power team of professionals that can support you on the technical aspects of property investing.
You need to get the experience.
This is the hardest thing to do.
And I totally get that!
But sometimes you just have to jump in and learn to swim.
It’s not always about doing the numbers and getting the networks, sometimes you just have to pull the trigger and deal with what comes at you.
Once you’ve done a deal, even if it’s not profitable, you would have learnt more than most people who spent their lives behind a book.
Now I’m certainly not saying just go out there, guns blazing!
But get into the field of battle and learn to take some knocks… It goes with the territory.
You need to change your mind-set!
Last but not least, you’ll need to change the way you see making mistakes.
You see, in order for you to be successful in this game you need to see your mistakes as lessons rather than failures.
See a mistake as a lesson on how to do it better in the future.
It’s impossible to go through this journey and not make mistakes. Prepare for it.
When they arrive, thank them for coming so soon and learn the lessons they have for you.
Once you have the lesson, move on and make the next mistake.
Fail your way to success.
How To Overcome The Four Biggest Problems Facing You As A Property Investor
It’s no secret that investing in property can be a challenge.
But it’s not impossible!
There are tons of investors out there, with far less resources, that’re able to invest in property successfully.
They tackle the four biggest problem they’ll face head on.
They find the capital, find the time, push themselves, and aren’t afraid of failure.
These are problems that stop most investors.
Successful property investors don’t let this happen.
And neither should you!
Until next time, be bold and go build that property portfolio.
Analyst, The SA Property Investor
The Money Lab