You need a property investment strategy to really succeed as a property investment entrepreneur #MumbiInvestments
This is one of the biggest conundrum of novice property investors! Why have a strategy? What is so important about having a strategy? Can’t I just jump in and get started right away?
This is a frequent question that personally made me jump onto my first investment without much thought and planning. Most new investors have fallen to this trap and find themselves with very undesirable investments that offer nothing close to their expectations.
Before proceeding further, let’s define strategy. The word strategy comes from the Greek word “strategia” whose direct translation means ‘office of general’, ‘command’ or ‘generalship’. The name thus originally arises from war planning and military operations, implying the utilization of a nations resources, through large-scale, long range planning and development, to ensure security and victory.
In business concept and investment operations, strategy is used to imply a high level plan to achieve one or more goals under conditions of uncertainty. When applied to Property Investments, it involves understanding why and what you want to achieve, how you go about achieving it and when you would like to realize your results. Without this ‘high level’ plan, it is still possible to succeed in property investment, however it will take much longer with lost revenue and opportunities in the market place.
It is all too easy to buy property investments without any strategy or planning. However, the result is a salad-type portfolio that does not give you any strengths or focus as a property investor. This is analogous to holding minor stocks or shares in different companies in diverse industries in an attempt to build wealth in the stock market. Unfortunately this leads to disappointment, frustration and poor results in the long run.
Property Investment Strategy then becomes a blueprint or roadmap to your journey of real estate investment. It offers many advantages such us focus, clarity, market intelligence, opportunities and a whole range of benefits that come with specialization.
A Property Investment Strategy Needs to be very simple and easy to explain to anyone in less than two sentences. The following three points are what I consider the cornerstones of a property investment strategy:
- Type of Property
- Goals – both short-term and long-term
To learn more about the importance of having a strategy as well as how to create your own be sure to get a copy of Build a Legacy today