Becoming a successful property investor takes a combination of highly specialised skills. Here’s who you need on your team to help you build your property portfolio, faster and more efficiently, starting with a dedicated property mentor. Because a good mentor knows exactly what to do and – perhaps even more importantly – what not to do!
What is a mentor?
A good mentor in any field will provide you with guidance, motivation, emotional support and role modelling. They can help you to set goals, develop a plan, identify useful resources and build your network of contacts. In the words of Luke Harris, CEO of The Property Mentors:How can a mentor help?
When things change around you it’s easy to become reactive. And it’s because of this that major financial decisions are often made by people in the midst of major life change:
Got a promotion? Go out and buy a new car.Had a baby? Review your will and update your life insurance.Lost your job? Sell that investment.
Sometimes this works out (if you’re a brand new parent then you should be updating your will!) But dramatic life events are rarely the right moment to make unplanned major changes – especially those that impact long term life goals.
That’s where a mentor comes in. They are there to guide you with a calm and objective influence and keep you on track…no matter what life throws at you. And let’s face it, no matter what your plans, things can and do change. All the time. It’s entirely normal.
How can a mentor help you buy property right now?
So, could a mentor help you get started on buying that first investment property? Or build your existing portfolio more successfully (because most investors find themselves stalled after their first couple of properties).
It really comes down to where you are personally. If you’re not one hundred per cent emotionally or educationally ready to jump into the deep end and make progress with your investing, you need to take a step back and acknowledge that you probably need a mentor. Because, when it comes to setting and achieving major goals, if you haven’t already done it by now (or at least planned it), you probably never will. So you need to ask yourself, what’s holding you back? Here are a few ideas:Lack of knowledge Confusion about the property market in general, and what makes one property better than another and one area better than anotherLack of time Making the decision making process more stressful than it needs to be, and leading to big decisions driven by emotion rather than logicLack of negotiation skills Likely due to a lack of experience and not having the right advisors around to help you avoid making costly mistakes
And all of these issues are exacerbated by receiving conflicting advice, from multiple uncoordinated sources, that won’t be tailored to your individual goals. A good mentor will help you cut out the noise, take away the confusion, and make sure you’re emotionally, financially and educationally ready to establish and grow a profitable investment property portfolio.
Mentoring is a long term service that can change and grow with the property market and your individual circumstances. Even better, a mentor helps you to make quick, educated and targeted decisions, saving you time and money.
Who else do you need on your team to help you build a successful property portfolio?So, here’s a bit about the team of professionals we’ve spent years finding and working with – all with the aim of helping property investors create the results they’ve been hoping, thinking and dreaming about.
MORTGAGE BROKER
You need an experienced mortgage broker who specialises in investment property on your team, because they can literally make or break your financial situation. Different strategies require very different approaches. Don’t just go with a broker recommended to you by family or friends – look for someone with personal investment experience who knows what’s needed to help you build a successful portfolio. Better still, find a broker who is well on their way to creating their own property portfolio so they understand exactly what you need to achieve.
Listen to our podcast on how to source the right mortgage broker here
TAX ACCOUNTANT
A tax accountant’s role is to manage your tax affairs, ensure you have the correct tax minimisation strategies in place, assist with setting up SMSF’s, entities and structures, provide options for asset protection, and help get the best results from your super fund by using the tax laws to your advantage. As you build your portfolio and move into more advanced property strategies, tax planning and structuring become more complicated, so a good tax accountant is critical to your long term success.
Read more about how your accountant can help set you and your property portfolio up for success here
FINANCIAL PLANNER
Financial planners or advisers don’t give tax advice – that’s a job for your tax accountant – but they do work with you to plan for your retirement and build wealth. They also make sure your assets are structured correctly and help protect your income and lifestyle by ensuring you have the right amount of insurance to suit your needs. They can look at life (and death) insurance, total and permanent disability insurance and other insurances to plan for the future. They also work with lawyers to make sure your estate planning needs, family law and other legal matters are handled effectively. There is a huge benefit in getting all of these details set up correctly from the beginning.
CONVEYANCER
Property contracts are complex legal documents, so it’s the role of a conveyancer to help with the legal aspects of the sale, reviewing contracts and facilitating the transfer of land. They make sure the banks are ready, and that PEXA (Property Exchange Australia) is set up, which is where electronic settlements take place. Because laws and legislation change all the time it's their job to make sure the process is completed correctly and that you comply with any special conditions. A good conveyancer will aim to minimise your risk, reviewing the Section 32 statement, looking for unfair contract terms and special conditions, and generally making sure that you don't end up in a situation where it will cost you more money than it should.
Listen to our podcast on what a conveyancer does and how they are different to a lawyer here
QUANTITY SURVEYOR
A tax depreciation schedule is a comprehensive report detailing the deductions you can claim on your investment property. It involves identifying the property value, estimated construction costs and the value of all claimable fittings and fixtures. And with legislation dictating what you can and can’t claim, depreciation is not something you want to take a risk on…neither do you want to miss out on claiming all available deductions! That’s why it pays to seek out depreciation advice from a dedicated quantity surveyor. If it has been prepared by a professional quantity surveying team, then you can be sure that you’re getting all of the tax benefits to which you’re entitled.
Read more about what depreciation is and how it works herePROPERTY MANAGER
If you’re a first time investor, there’s likely a raft of landlord responsibilities you probably haven’t even thought about. And if you’re an experienced investor with multiple properties in your portfolio, you probably don’t have time to manage everything yourself. That’s where a good property manager comes in. They not only take care of all the things you don’t have time to do, they also help you secure the best tenants, navigate the ever-changing legal landscape and maximise the return on your investment. CEO of The Property Mentors, Luke Harris, believes a good property manager is a vital component of any successful investment strategy.
Download our guide to choosing a property manager or request a free rental appraisal here Building a successful property portfolio is a team effort!
According to Australian Taxation Office data, only around 10% of Australian taxpayers have an interest in one investment property, just under 3% have two, less than .1% have three, and so on into oblivion...it isn’t easy to invest successfully and sustainably in property!
And successful investors aren’t just ‘lucky’ or people who ‘bought well’ – they’re ordinary Australians who had a strategy to match their goals and an expert core wealth team to help them on their journey.
That’s why the importance of having the right team around you can’t be understated – it’s literally the difference between success and failure.
So if you want to:
Find the right propertyFor the right priceAccording to your plan
While at the same time:
Avoid bad decisionsAvoid costly mistakesRemove emotion from the purchase processReceive independent and unbiased advice
Our team of mentors can help you plan, build your team, challenge you and hold you to your goals and commitment to your financial future. Take the first step by booking in a free discovery call with one of our mentors today.
Like to learn more about the benefits of becoming a member of The Property Mentors and building a team? Listen to Luke Harris and explore our other videos here.
