Which part of the property business is best for me?

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If you are not yet sure of which area of property suits you then you would be well advised to mix with fellow property entrepreneurs to try and find a match for your personality. 
 
There are many ways of making money in property. You need to decide which area you like (not the one you think will make you the most money) and aim to very good at it; 
 

Buy-to-let

Buying to let initially requires contact with people. You will need to be sociable and hard working. If you prefer not to meet people you can do a lot of the work over the phone before visiting the property and closing the deal with the seller. Starting capital of £5,000+ will be a definite advantage. 

 
 
 

Property development

The development side requires excellent people management skills. You must work well in a team and know how to motivate people. You will be meeting a lot of estate agents, finders, sellers, builders and dealers in your search for suitable properties/plots as well as people to help you develop them. You will almost certainly require a substantial sum of capital for the majority of development projects although you can joint venture with private investors if this is not the case (explained in detail later). 

 
 
 

Property finance brokering

Property financing includes mortgages, private investors and specialist property related loans. Financing is not as risky as property development or buy to let because you will be helping others raise finance for their projects. As a middleman (or woman) you will be earning your money via commission therefore sales and marketing skills are an essential prerequisite for this area. You may also need to take certain exams before you are able to broker loans or mortgages for other people. 

 
 
 

Property acquisition

You may decide to work as an estate agent or ‘finder’. In this way you work as a middleman (or woman) between the buyers and sellers. This is fun and rewarding work. Once again your income will be made up of commissions so your marketing and people skills will both need to be well developed. Once you have put together a decent sum of capital from your commissions, you can use that to purchase buy to let properties or participate in property developments. 

 
 
 

Property letting

If you like to work with the general public you could manage the properties of fellow landlords. You will need excellent people management skills, a great eye for detail and an acute awareness of current laws and regulations relating to tenancies. The benefits of owning a letting agency are many. Not only do you earn an income from managing other people’s properties, but you also get to manage your own for very little cost to you. More importantly, you get a superb insiders knowledge of the local market and you can make sure the best tenants live in your properties!

 

Property development financing

This is where I have some experience. I manage risk by having my capital invested in a number of projects at any one time. Development financing suits those with experience, capital and a good head for figures.

 

Creative investment strategies

If you want to profit from property without actually aquiring property yourself you can utilise creative property strategies. Most of these strategies involve little or no money and can generate sums of cash for you to invest into buy to let properties. Examples of creative strategies are Lease Options and Assisted sales. This is a good way to get started in property with little risk and build your experience.

 

success through property

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