Building a property firm from scratch is going to take all of your energy. Property isn’t easy. Every property is big and cumbersome and they all want to fail on you. Every single last constituent piece of property – from the windows to the door handles – is constructed from materials that will serve a purpose for an amount of time before they will need to be replaced. As nice as it would be to replace everything at once and know that your renovations are complete for a decade, it doesn’t work like that. Things fail at different times, and your property business must be awake to the very real issues, lest your company will fail as fast as you started it.
Starting a company can in itself be stormy waters, regardless of the industry. For example, if you don’t keep track of your outgoings by using expense tracking software, you could find yourself unable to survive year one simply due to poor expenses management.
Let’s look at what else you need to cover.
Stick to what you know
Buying property is fraught with hidden woes. Not to boggle your mind, but issues with plumbing, electrics, subsidence, and dampness can all ruin your plans. Then there’s the issue of how local developments could affect property prices. Your homework is never complete when it comes to property ownership.
In short, stick to what you know. If you have knowledge of owning and renting out medical properties, keep doing that (at least for now). If you suddenly switch and decide to expand into properties befitting the leisure and tourism industries, for example, you will soon find that you are out of your depth. Property is much easier to conquer when you level the playing field with an in-depth knowledge of maintenance in relation to the building’s purpose.
Invest as a group
Group investments aren’t for everybody. Some people want to take all of the glory. And that is fair enough. Your property startup is your baby, and you have to do what you think is best. If sharing the decision-making element of property ownership isn’t something you can abide by, group investments are a non-starter. However, never say never.
Group investments can minimise risk and bring in expert knowledge. You can put very little money down, learn from others, and still benefit from a revenue stream. Now, that doesn’t sound too bad, does it? Especially for a startup brand that is eager to learn the trade and minimise any losses.
Patience – learn to spot value and act fast
When you bought your first house (assuming you are a homeowner), you probably fell into the same trap as everyone else when viewing properties. Which is to say, you shopped around for too long without really knowing what you were doing, only to eventually find out your first-choice house was snapped up by someone else.
The property business is brutally fast and fair – whoever puts the money down first and signs the contracts will get what they paid for. Make sure you learn to ask the right questions and don’t be afraid to act when the chips fall in your favour.