Learn from the mistakes of others. You can't live long enough to make them all yourself

These were the words of Eleanor Roosevelt - US Diplomat & Reformer.
I think this is as relevant to Property Investment as it is anywhere else.
Does anyone feel like sharing their bad experiences or the mistakes they have realised later. Anything they regret doing or anything they could have done differently looking back.

It would be great to know for individuals like me who just stepped into the market.

 

This is so true.
Even reading posts on this forum can save a lot of heartache.
When I first joined Somersoft I read it everyday, just scrolling and reading.

It certainly taught me many things that, as you say would have taken years of learning and would have cost me in the long run.

I had set up my loans (the wrong way- crossed securitised) when I joined.
That alone saves lots of readers some heartache later on.

 

That's why you need a good mentor who has been there before and solved the exact problems you are facing now.

 

There's a lot of things you can (and probably should) outsource.

* Property management - most people simply aren't that great at it. It's a negligible cost, but making mistakes can cost a lot more. There are some great PMs out there.

* Finance - the only things more important in property investment are having a good strategy and the right properties to meet that strategy. Finance is a lot more complicated than simply filling in a few forms and getting a loan approved. The right finance strategy will make a massive difference between success and mediocre results. People rarely get good advice on this by approaching the banks directly.

* Conveyaning - I've known a few people who try to do their own conveyancer or get a friend who's a solicitor to do it. Get someone who does it every day.

* Buyers agents - Not for every purchase, but let's face it, a BA buys properties every day. They probably do know the local market better than most people, they probably are better negotiators than most people. They're not emotionally invested in the purchase. If you're purchasing outside of your comfort zone, engaging a buyers agent may be a good idea.

 

This is an interesting read, that Terry mentioned in one of his Tax tip posts (#6).
CCH iKnow

- A lot of learning to take home in this, though it takes a couple of reads to fully understand the technical jargon.

 

Sure - Find nearly any of my posts/threads. If you want to know what not to do... Ive made plenty of well documented F***ups.

Blacky

http://somersoft.com/forums/showthrea

d.php?t=81774

 

**** ups have been a great teacher for me too

 

Thanks for the link @Blacky . Great thread of yours, definitely a lot of learning ( a big one - I need to lower my expectations).

 

not easy to find a good mentor though…..

 

I've chosen people who are where I want to be but 10 years ahead - in business that is - then I aim to outgrow them as fast as I could. When you are at a certain level, they are no longer able to help and you need to find a bigger mentor. I have had mentors all my life and have then now too.

 

Yes, true, sometimes it takes me to read several times to understand something I really want to know, because lots of people here have more knowledges and experiences I can learn and copy, save me making more mistakes on the journey of property investment.

 

During the property boom, between Mentor and Spruiker is a thin gray line / area

 

Go to a broker for finance.

I went direct to the bank for my first one. VERY costly error.

 

Trying to juggle too many balls can lead to poor decisions, stress and over-saturation in the field of property investment. My advice would be to stick to what you know, outsource or seek the advice of those who are specialists in their fields (as per Pete's email above) and never stop learning

 

Terry has been incredibly generous to provide this free information.

 

Mentor wants you to suceeed and is someone who will likely not charge you time but you should buy them lunch/coffee to show appreciation. They do not have any alternative arrangement with anyone to sell you services or products but rather give guidance on what they would do and/or have you thought of this rather this and not say buy this from me and I will give you the answer.

A Spruiker is buy now I have all the secrets to make you millions and if you buy in the next 10 mins I will discount it by $2,000. Also for the first 10 people you will get a pair a steak knives for free!

Spruikers are the ones that would market themselves as expert but rely on the income from their information. A mentor would more likely be not needing of the money as they are successful enough without your money.

I always find it funny how spruikers are charging people when they say they want to help you. Then when you talk about costs they say so you are committed to the cause. This part I can understand if you haven't put any skin in you will be less likely to take action as you haven't lost anything. However what would be better is asking the person to make a donation to a charity of their choice and that way if they do anything a charity has gotten the benefit and even if they do take action they can claim it against their tax, so everyone wins!

That is my 2 cents...

 

@Big Will Yes, I agree with you on that term .

@Rolf Latham Boom time means where it is easier to buy property rather than renting. For example Sydney between 2013-2015 is considered as boom time.

 

Tell us how and why it was so costly?

 

One thing was he signed up for a fixed term mortgage for 15 years... had to break the contract...