Can You Still Make Money From Property?

Launching a new career is difficult at the best of times. You’ll need to reinvigorate your identity, make a name for yourself in a new field, and start from the bottom once again.

Being an entrepreneur and attempting to work for yourself can make things a little easier to bear, as you don’t have to answer to anyone else. However, competing with your rivals can be tricky as you are a little fish in a big pond.

Be Wary

As a newbie, there will be plenty of mortgage offers, real estate agents and dodgy auction houses that will be eager to secure your business. Make sure that you keep your wits about you as a naive and green property developer.

We saw Doug Hopkins on American Greed detailing how people can hide criminal activity to take advantage of people that might not know any better.

You don’t want to run foul of the law, and you don’t want to be defrauded. Go for reputable and well known home loan lenders, and always get yourself a decent lawyer to represent you in your business.

Buy Well

If a property seems to good to be true, the chances are that it is.

There is always a reason why a dwelling is dirt cheap. It might have subsidence, be un-mortgageable ,or it might be in a crime ridden area.

Your aim should be to buy the worst house on the best street. This way, you can work on upgrading a property in poor condition, breaking the ceiling price of the street and making a healthy return on your investment.

Start small by purchasing a run down apartment in a salubrious area. You can always change a pad but you cannot change the location in which it is situated.

Look for places with good schools, excellent transport links and plenty of amenities. If the property prices for that area have increased for the previous five years, then you know that you are into a winner.

Respect Your Cash Flow

Never overstretch yourself, even if you get into the property swing of things. The financial markets are volatile so continue to renovate no more than two properties at a time to start.

This gives you a chance to cash in when you sell up, but you don’t have to worry about cash flow stagnating.

Be prudent when choosing fixtures and fittings, and never overspend on a granite quartz kitchen worktop if it isn’t going to increase the sales price of the home.

Being a property developer can be an exciting profession. However, you must have your wits about you, do your research and be prepared for some hard graft to help your new venture go from strength to strength.

This is a contributed post.