At this point, the Guided Property System is going to shift focus.
I want you to go back to the reasons you defined on Day 5 of this training – the one where you listed down why you wanted to become a property investor and why you wanted to be financially independent.
Looking at all of these reasons, you may be in a number of spaces right now: inspired, overwhelmed, resigned, scared, excited – and many more.
Whatever you feel, it’s okay; just acknowledge it and let’s keep going.
Now ask yourself, “How will I make this happen? How will I build a portfolio of properties that will help me to fulfil this goal?”
At this point, you may be nervous, doubtful or even freaking out!
Again, just acknowledge whatever you feel, be aware of it – and let’s keep going.
Let me assure you that the purpose of why I’m getting you to review this is purely to help you realise that you may or may not have a plan.
Regardless of where you are, one thing is obvious – you want to be a successful property investor.
Now, if I could make your life easier and provide you with the magic formula for investing in property, would you like that?
Well, I have some good news and some bad news for you.
The bad news is that there is no magic formula.
The good news is – I have the next best thing.
It’s a personal investing strategy.
A personal investing strategy is the closest you’ll ever get to a magic formula.
Whilst the word “strategy” is thrown around like a buzzword, the qualifier here is that it has to be personal. This means that it is based upon your personal financial circumstances, and your personal goals.
This also means that every person will have a different strategy – there is no “one size fits all” strategy.
Now I have covered this previously, but I think it’s worth saying again:
There are far too many people out there taking real estate investment advice from people who have no idea about strategy, have no idea about your personal financial situation, and have no idea what your personal goals are!
In fact, there’s a strong chance that the people giving you this advice have never invested in property themselves!
You need to be rational when it comes to investing. If the returns aren’t there; and if the numbers don’t stack up – then don’t buy it. It doesn’t matter if it’s a large 5 bedroom house with a pool and a tennis court in a “booming” area. If the numbers don’t fit your strategy, then don’t buy it!
So over the next couple of weeks, I will be sharing more information on strategy with you – and you’ll see for yourself that it really is the closest thing you can get to a magic formula when it comes to property investing.
Let’s talk about the money that you need to make in order to be financially independent.
Go through this list and start putting dollar amounts against your current monthlyobligations:
|Current Monthly Obligations|
|Rent / Mortgage:||$||Electricity / Gas / Water:||$|
|Car load:||$||Home maintenance:||$|
|Groceries:||$||School Fees / Uniform:||$|
|Eating Out / Coffees:||$||Loans / Credit Cards:||$|
|Clothing / Accessories:||$||Other Expenses:||$|
|Total Monthly Expenses: $|
Now once you’ve done this, total it up and you should have your total monthly expenses.
That’s the first step you need to take to determine how much you need to generate to cover your monthly expenses.
Now, we need to look at how many properties you’ll possibly need based upon varying monthly returns. You’ll need to print off and complete the following table:
|Income Generated by Investment Property per Month:||Number of Properties Required to Meet My Monthly Obligations (you fill this in):|
At the end of this exercise, you should have an idea of what it will take to possibly cover your monthly expenses. Note, it’s not very likely that all your properties will return exactly the same rental yield – that is to say, you’re not going to have you’re your properties return $520 a month as an example. You will most likely have a mixture of rental yield amounts in your portfolio of properties – one property may return $400 a month, another may return $440 a month, a third may return $600 a month and so on. So play around with this as much as you like.
Please note: this is NOT a strategy; this is just an exercise to give you perspective. Please DO NOT use this as an investment strategy!
So give this a go, and I’ll share some more information with you shortly.
P.S. In my next e-mail, we’ll look deeper and explore the factors that need to be taken into account when creating your strategy.