Many property investors think twice about building a financial team because of the extra cash that they have to let go of to have professionals assist them through their journey, but the most successful investors would always say that a good team is actually one of the reasons they were propelled to a better position.
While it is possible for some property investors to dedicate most of their time to the business of wealth creation, many still find it hard to balance their day-to-day responsibilities while managing their portfolio.
Right Property Group’s Victor Kumar is one of the lucky ones who were able to turn their passion for property investment to a full-time profession.
“I was a radiographer—and one of the [problems] I had is working within the constraints of my employer than finding time to actually go out and research and actually do what I really enjoy, which is finding properties and seeing my wealth develop. Like most successful investors I meet out there, everyone wants to do… property investment full time—I made it my mission to do it as a full-time job,” he shared.
After starting out by helping friends and family set up their property investment journeys, he decided to formally offer his services as a buyer’s agent by establishing a business venture.
However, not all property investors could drop everything the same way Victor did and enjoy the same fate, according to Smart Property Investment’s Vivienne Kelly.
She explained: “A lot of people fantasize about that but, realistically, for most people, that is a pipe dream because… 70 per cent of property investors never [go] beyond one or two properties. Only about 6 per cent of them [go] beyond seven. While everyone might be dreaming of doing it full-time, something is obviously blocking their way.”
Many property investors would say time is the main hindrance to achieving their goals, but those with more than 10 properties to their name find themselves continuing on the path of success simply by finding the right people to take with them on their property investment journey.
Recognising that not everyone could be like Victor, who can confidently manage his portfolio on his own, is one of the most simple yet often overlooked secrets to success in the business of creating wealth through property.
“The successful ones that we do talk to that have 30+ properties, whenever you ask them for advice on what other investors should learn from them, it’s always about building a team around them—having a buyer’s agent, having a mortgage broker, investing in education,” Vivienne said.
“They often use an analogy of ‘You wouldn’t go and do your own surgery’ or ‘You wouldn’t try and fix your own car.’ When you’re dealing with millions and millions of dollars, why will you try and do it yourself?”
According to her, while it is understandable that people hesitate to shell out more money for a financial team, property investors must remember that this additional expense will come back as opportunities to earn more.
“[You are] dealing with wealth creation and retirement and funding and the rest of your life… Sophisticated investors that recognize that they’re just going to have to part with a bit more money to do it properly. They also say they make the money back very quickly because an experienced buyer’s agent can get them that under market value property that going to grow more quickly and give them more equity and more cash flow. You’re parting with money to make money,” Vivienne concluded.
Tune in to Victor Kumar’s episode on The Smart Property Investment Show to know more about his biggest investment mistakes and what he did to keep the wheels in motion, as well as his insight on where the property market is heading.