New property investors looking to take their first tentative steps into property development can benefit greatly from advice and assistance from a property investor mentor. There are many reasons for choosing to use a mentor and we take a look at those reasons here.
- Avoiding the pitfalls and minimising the risks
We have all spent our lives taking the advice and learning from mentors such as our parents, teachers and workplace managers. Just like in life, a property investor mentor will share with you there wealth of knowledge, enabling you to follow in their footsteps while avoiding the pitfalls that you alone could not predict.
A mentor will share their insider knowledge with you and give you the education and guidance that you will need to become a successful property investor.
- Using the right strategy
Strategy is key in property investment and property development. A property development mentor will show you how to build a sustainable property portfolio using innovative yet proven strategies. These strategies will accelerate your investment goals and help you achieve bigger profits.
A mentor will show you how and where to find deals and ensure that you buy in the right area, which is typically no more than one hour away from where you live. A mentor will also ensure that you refurbish properties to target the local market and not your own personal tastes.
You can learn how to choose your buying criteria and stick to it, focusing on cash flow over capital appreciation. You may also need to find out how best to negotiate deals with vendors and agents in order to maximise profits.
- Funding developments
New property investors usually do not know how to fund developments or may not be aware of the financing options available to them. Developments can be funded in partnership with your chosen mentor or funding can be acquired through property development finance.
A mentor can advise the new property investor on the types of loans that are available for property developers. These include joint venture and equity finance, build to let finance, sales period finance and pre-development bridging loans.
Financing can be tailored to fit the developer and it is recommended to use a lender with local agents who understand the property development process and the financial needs of the developer.
How to choose a property investment mentor
It is advisable to look for certain traits, integrity and achievements when choosing a property investment mentor. You should look for a property investment mentor who is currently investing and using the strategies that they teach. Your mentor should have completed tens of property transactions and have been investing for more than a decade.
A mentors such as Glenn Armstrong of http://www.glennarmstrong.com, will have a wealth of experience to share. Glenn Armstrong, for instance, has 60 current development projects across the UK, including renovate to sell projects, new build projects and conversion to flats projects for buy-to-let. These projects are in addition to managing a personal rental portfolio of more than 240 properties.