Landlord Series – 01 Experts
Hi it’s Brian and David here from Bugwash Property. We’re just gonna have a chat today about landlords. David, why is it that 85% of the landlords out there sell their properties before they make any money? What are they doing wrong that they should be changing?
It’s a good question, Brian. What I find is that when I get out there and talk to landlords, they all want to get in to property for the same reason, to be able to set themselves up successfully, have a successful retirement, produce some passive income. But, a lot of them just.. I say to people every single day “You’ve either gotta become an expert, or use an expert”. Now, it’s a jungle out there, so most landlords, they have no idea where to invest, when to invest, how to structure things, and they have no idea when to get out of the market. So once people understand that property works in cycles, and there’s four phases to every cycle, and you really make all of your money, or the bulk of your money, in the boom phase of the cycle. If people are out there just doing the old buy and hold thing, and thinking that they’re gonna do well owning one or more properties through the slow down, slump, and recovery phase of the markets, they’re sadly mistaken. So a lot of people, they have all the right intentions, but they just have no idea what they’re doing. They don’t sit down, they’ve never actually worked out exactly what their property is making them or costing them per year. They just sit down and do the money in versus money out scenario. So it’s just important for landlords to acknowledge where they’re at, work out exactly where they’re at, work out how their current property or properties are performing, and then, find someone that they know, like and trust, that’s got the experience on the table, someone that can take them by the hand and walk them through the various steps. Or, they’ve gotta go out there in their spare time, try and become property experts as well, but as a wise man once said, “People that aren’t really smart “don’t learn from their mistakes. “Smart people do learn from their mistakes, “but really, really smart people learn “from other people’s mistakes”. So, if someone wants to be a butcher, you wanna go out there and find the most successful butcher you can find, and listen to them and learn from them. If you wanna be a successful property investor, it’s important to find somebody out there that you know, like and trust, that’s already a really successful property investor, then listen to them, ’cause then you don’t have to make any of the mistakes yourself.
Awesome. Thanks, mate.