. I have no time
The Excuse: Part time buy-to-let property investing takes too much of my family time.
The Truth:
Time management is in your emotional control and has more to do with
your priorities and relationships in life. Most people are spending too
much time on low priority actions such as watching TV and too little
time working on their business and relationships.
The Cure:
Cut down on watching TV and creatively use your time to build your
professional buy-to-let property investment business power team. You are
just as strong as your power team.
2. I have no money
The Excuse:
It takes money to make money.
The Truth:
You do not need money to make money. Educated property investors do
not use their own money to invest in property. A good Cash Positive
property deal at 30% Below Market Value (BMV) will always attract
finance from the banks.
The Cure:
Make sure your professional bond originator understands your business to source 100% finance for your BMV properties.
3. BMV properties do not exist
The Excuse:
It's not possible to buy properties 30% BMV.
The Truth:
BMV properties are in abundance if you know where to look. BMV
properties are available in all property cycles and not only in negative
property cycles. Most BMV properties are available from motivated
sellers for different reasons such as divorce, job relocation, new
business ventures, emigration and many more.
The Cure:
Create your own unique BMV property sourcing system that works best for you in your specific market.
4. Buy-to-let investors are full time cash flow shortfall subsidizers.
The Excuse:
I have "heard" buy-to-let investors are losing money each day and
are even losing their properties in negative property cycles due to the
high cash flow shortfalls.
The Truth:
Whatever you belief will be correct. Listening to advice from
pessimists will make you a pessimist. Cash positive properties are in
abundance.
The Cure:
Educate yourself and do the numbers to determine your returns. Do
not accept professional advice from people who do not have a more
successful property investment business than you.
5. There are too many buy-to-let investors and no good deals around
The Excuse:
I do not have the contacts to get me one of the few good deals around.
The Truth:
Most buy-to-let investors wait for ever to get that one good deal.
You do not need contacts to get one of the numerous good deals around.
If you loose one good deal, the next one is just around the corner.
The Cure:
Source your own BMV deals, do the numbers and go get the deal.
6. Property investing is high risk
The Excuse:
I know lots of people who lost millions in property.
The Truth:
Yes, many uneducated property investors have lost money. Investing
in cash positive high growth BMV properties without your own money is
THE lowest risk property investment you can ever make as you can not
loose any money.
The Cure:
First invest in your property education before you invest in
property. Make sure you understand the risk profile of each of your
property investments.
7. Investing in property will not make me rich.
The Excuse:
The yields on property investments barely beat the inflation rate and will never make me financially free.
The Truth:
History shows us that South African nominal property prices have on
average doubled in value over every seven year period between 1975 and
now. In other words, if you have a R 10 000 000 buy-to-let property
investment portfolio today (2009) it could be worth R 20 000 000 in 2016
and R 40 000 000 by 2023 if history repeats it self.
The Cure:
What are you waiting for?
8. I don't know where to start.
The Excuse:
I do not know where to start and need lots more property investing experience.
The Truth:
You will never learn everything but you can quickly learn enough to
do your first deal. You only gain experience in property investing by
doing deals as each deal is different.
The Cure:
After you have educated yourself and gained the basic buy-to-let
property investment knowledge, do not hesitate to sign your first deal.
It will probably not be the best deal you will do in your property
investment career, but it will be the most important step on the
experience ladder to financial freedom.
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