5 and hold, planning your portfolio,
For most of us starting off as property investors, the thought of owning 5 properties is way out of any imaginable comfort zone. Sure, owning a couple of properties, most of us can imagine that, but 5 properties presents a whole range of new issues, you now have a certifiable investment property portfolio. Along with this comes a number of responsibilities which cannot be overlooked.
“5 and Hold” property investment strategy is simply – once you have achieved 5 properties you will hold off from buying further properties until you have set aside time to develop the systems that are required to make it very easy for you to manage your portfolio.
Remember – it's all about Set and Forget investment. The better you set your portfolio up the more you can forget the portfolio on an ongoing basis.
5 and Hold systems include such things as:
- learning how to best use credit cards
- bank accounts
- setting up co-ordinated direct debits
- restructuring to an offset or all-in-one mortgage account
- completion of required information (Managing agents details, letting agents details etc)
- exploring tax effective (minimization) structures
- exploring protective structures
- consolidating cash flows and mortgage products
- organizing succession and wills
- organizing an accountant
- if you haven't already done so you should have implemented Ezytrac
- sorting out your filing system. (You would not believe the paperwork that is generated on each property)
- setting regular review times
If you want to check you have covered everything you need to after your fifth property then why not check out this free investment ebook.
The second aspect of 5 and Hold is setting some very specific LIFESTYLE goals. Prior to working in property, I owned a large personal development company and have written books on the subject. My overriding philosophy is that property and personal development are one in the same, property is just a vehicle.
I don't believe that you build a substantial portfolio until you have developed as a person. It's why I am so passionate about goals and lifestyle as an integral part of building a thriving property portfolio.
So if you are on the phone to me and an hour passes by without me selling you a property, mentioning property, or even whispering subliminally property, don't worry it's probably because we are talking about personal development.
Live with passion,
PS. I am happy to chat about goals and lifestyle prior to your 5th property. I just find that until you have 5 you have absolutely no idea about what is possible through property. Your 5th property tends to open your eyes to the lifestyle possibilities. It's also about the time when you stop talking in terms of how many properties you own and start talking about how much they are worth.
PPS. If you are interested in talking in terms of lifestyle, personal development, goals then book a personal “Clarity Solutions” session with me. The session lasts an hour and will provide you with a very clear and specific picture of what you will achieve through building your portfolio.