How to be a property investor pro
2012/02/07

"One of the many reasons why direct property investment consistently produces superior returns is the fact that it allows an investor to retain firm control of his or her investments. "

Many investors, confused by the wide range of investment vehicles and mechanisms, which are often shrouded by foreign-sounding 'financial' jargon, simply hand over their hard-earned money to an unknown third party - be it a financial adviser, a banker or an asset manager, without really understanding the investment option they implicitly select.

In doing so, these investors relinquish responsibility for their money and their financial future. They have absolutely no control over their investment and can do nothing to influence the performance of their investment, except to hope that this third party will deliver on the promises made.

On the other hand professional property investors have empowered themselves with knowledge of how property investment works.

Given the simplicity of the property investment model, they are able to do their own due diligence on each investment opportunity, to ensure they invest their money in a good property in a good area with solid rental demand - where it will earn not only ongoing, compounded capital growth, but will also produce an ongoing, inflation-linked passive monthly income for life.

They know exactly where their money is at all times, in a bricks-and-mortar property they can see and touch.

An investor who directly owns income-producing properties is not at the mercy of volatile market sentiments or the performance of asset managers, but can actively manage his or her portfolio by taking advantage of exceptional buying opportunities, adding additional income streams, renovating or refurbishing properties to increase income potential, negotiating with tenants to avoid a vacancy or increase the return, and even selling non-performing assets if necessary.

For this reason, you will seldom hear professional property investors lament the poor performance of their salaried asset manager or bemoan the fact that the economy has decimated their portfolios or that events on the other side of the globe have vanquished their carefully crafted long-term strategies.

On the contrary, property investors who take a professional approach to their property investment business never relinquish control of their hard-earned money or their future success to any third party.

They, and they alone, assume responsibility for their success and their wealth, and as professionals, they are competent and confident in doing so.

This confidence is derived from following proven step-by-step systems and implementing tried-and-tested risk management strategies.

In this way, professional property investors make solid investment decisions, manage their risk prudently and reap the benefits of an investment strategy that has proven to be infallible when applied correctly.

In addition, while professional property investors never relinquish control over their money and their investments, they certainly do not have to do everything themselves.

They appoint experts such as reputable estate agents, rental management agents and trust specialists to take care of the details and as such, professional property investors do not manage properties or tenants.

They manage growing property portfolios and they manage the experts they have appointed to take care of the details.

They have mastered the fine art of delegating authority without abdicating responsibility. They are concerned with identifying lucrative areas, scrutinising individual deals, negotiating, and turning their vision of passive income and wealth into reality.

Professional property investors take control of their own destiny.

SA Property Investor