Scaling Your Property Investment Business

Are you an investor or business owner looking for strategies to grow and expand your property investment business? Looking to further diversify your income portfolio? If so, this blog post can help!

Explore tried and tested ideas for scaling your current operation with innovative approaches tailored towards long-term success. Investing in real estate isn’t just about acquiring physical property; it’s also about sustainable growth through careful planning, utilising effective management practices and strategically deploying resources such as your time, network and leverage potential at each stage. We’ll share actionable advice that is sure to keep you competitive within the dynamic environment we exist in today.

Why are property management companies necessary to grow your property business?

Without using a property management company to grow your business, you are creating a glass ceiling for the size of your business. The truth is that if you do everything for your property business yourself, you will create a business that is entirely dependent on you. Say goodbye to holidays, sick days and passive income: your profit potential will be limited by the hours that you work each day and your level of understanding and expertise.

Alternatively, property management companies provide a range of services that make it easier for landlords and property owners to manage their investments. They can help with everything from finding tenants and collecting rent payments to handling maintenance issues and ensuring compliance with local laws.

When it comes to serviced accommodation, they also work to ensure maximum occupancy and can packages may include cleaning and laundry etc. too.

They also offer invaluable advice on how to maximise returns on investments, as well as providing support when dealing with difficult tenants or legal issues. With the right property management company, landlords and property owners can rest assured that their investments are in safe hands.

How does automated property management help you scale your property investment business?

Automated property management is a game-changer for property investors looking to scale their business. By leveraging technology, investors can streamline their operations and achieve greater efficiency across their portfolios. Automated property management helps with many aspects of the process such as rent collection, maintenance requests, and tenant screening. It can also provide 24/7 communication channels allowing tenants to send requests or report issues outside of normal business hours.

Through automated platforms, investors can monitor the performance of their properties in real time, track rent payments and expenses, and analyse data to identify areas for improvement. Automated property management software frees up investors’ time by automating administrative tasks, allowing them to focus on tasks that are more valuable and critical to growing their business, such as finding new investment opportunities. With improved efficiency and time savings, investors can rapidly scale their business by acquiring new properties and optimising existing ones.

There are additional benefits to automation when it comes to Serviced Accommodation particularly, for example, dynamic pricing can raise or lower your prices according to the season, competition and occupancy levels, enabling you to maximise your profit margins.

Why is equity release an integral part of growing your property business?

Releasing equity allows you to access money that has been building up in your property’s value or from paying off your investment. As an investor, your rental income will determine how much you can release. You’ll also have the option of paying an interest-only mortgage for these types of properties. Discover how you can leverage your rental income to maximise your investment potential.

Three-step system for expanding your portfolio by releasing equity:

1. Release equity a property that has grown in value

How Do I Release Equity?

There are three ways to do this:

Speak to your current lender and request an additional advance. Different lenders have different criteria for lending.
Seek a new mortgage with a new lender (you can shop around yourself or seek advice from a mortgage broker who has more knowledge of which lenders are likely to offer you a mortgage at the best rates).
Get a 2nd mortgage (this is not as common in recent years but is still possible).

2. Reinvest the money in deposits for multiple properties

For instance (based on an unencumbered £400,000 property)

An ‘unencumbered property’ is one with no money owed on it.

Get a 75% Loan To Value mortgage (typical buy-to-let rate) = £300,000
Put deposits on 4 properties (inc. stamp duty payments and legal fees)
Pay the mortgages from the rental income on each of these properties and use the remainder to fund your lifestyle.

3. Repeat

When one or more of your properties gain in value, do the same again.

Here is one of many examples from Paul Smith’s personal portfolio:

He bought this Springfield House in 2015.

Purchase price: £285,000

Remortgaged in 2016: £440,000

Total equity released: £155,000

Current Value: £970,000

From the time it was remortgaged in 2016, Springfield House’s worth has more than doubled.

What’s the next wise move?

Unlock more equity!

The great news is that this option is not a one-off strategy. It’s a smart way to keep leveraging your growing assets.

How can I secure private finance to expand my property business?

Private finance is an excellent option for property investors looking to expand their business. From joint ventures to angel investors it is possible to expand more quickly with additional funding streams. To secure private finance, it is essential to have a solid business plan that outlines your investment strategy and how you plan to use the funds.

The first step in securing private finance is to build relationships with potential investors. Attend networking events, industry conferences and other gatherings that investors may attend, and be ready to present your investment strategy. Property Wealth Network events are an excellent opportunity to connect with potential investors.

Why is property education vital for growth and expansion?

Education is the thing that stands between being an amateur landlord that earns a little bit of extra income and attaining complete financial freedom through property investment. For serious investors looking to grow and expand their business and attain true wealth, education is essential.

Did you know that flipping and buy to let aren’t your only strategic options?

Expanding your understanding of property investment beyond the commonly known strategies to include commercial conversions, commercial portfolio building, deal sourcing, rent to rent and serviced accommodation (corporate and holiday) broadens your money-making opportunities and will allow you to pivot strategies for success in any climate.

Did you realise that you could be paying more tax by investing in your own name? Or that different structures are better for different property investment types?

Structuring your property company efficiently can also make a huge difference to your profit margins and the taxes that you pay.

Learning about the different aspects of property investing, including market trends, investment, legal aspects, and finance will prevent expensive mistakes and enable you to make the maximum profit possible.

By investing in property education, investors can stay ahead of changes in the market and anticipate trends that may affect their investments. They can also learn new strategies for managing properties, taxes, dealing with tenants, and negotiating with buyers and sellers. Property education also helps investors learn how to manage risk and identify new opportunities for growth in the market.

But property education is not only essential for growth but also for risk management. By understanding the legal and financial aspects of property investing, investors can avoid costly mistakes and legal issues that can lead to financial loss. Finally, property education can help investors network with other professionals in the industry, gain access to new investment opportunities, and create a reputation as an expert in property investing.

Wealth Through Property is the UK’s leading 2-day property investment course. It is designed to provide you with specialist knowledge of proven investor strategies. Learn how to get started and build your property portfolio and gain real-world advice.

Alternatively, make the first steps on your property journey, claim your free Wealth Through Property e-book.

To find out more information about the property investment courses we offer call us on 01302 897131 or email office@touchstoneeducation.li.