subject: Golden Principles of Property Investment – Part 2 – Network With Like Minded People [print this page] Not every property owner is property investor! There are reasons why some property investors who can easily make money buy property investment but there are even more property owners working very hard to service their property loans, save expenses for monthly cash flow and tighten their belts just to save a few more dollars to maintain their home.
In this information era, news are money! However, not all news are useful, depends on the source of the news. Therefore, it is very important to build a reliable source of information, updates and latest news within the property investment community.
Within the property investment community, there are certainly people like you who are property investors (hopefully wise and smart people who know how to invest in properties and make money then enjoy financial freedom or lifestyle). Developers always like property investors because their community is more likely to purchase in bulk. Therefore, these real estate investors always have good properties offered various developers. Moreover, due to bulk purchase, it is easily to get a bulk discount (below market price for a good property) and it means more profits for the investment. So the first two groups of people you want to network with like-minded property investors and real estate developers.
The second groups of people you want to network with are property service providers like the real estate agents and valuers. In most developed cities in Malaysia like Kuala Lumpur (KL), George Town (Penang) or Johor Bahru (Johor), real estate agents will normally exchange database and work together to cross sell each other properties. It is wise to make friends with property agents because you will be charged lower commission due to long-term relationship, potential future businesses as well as friendship. Furthermore, to make friend with property valuers helps you raise the value of you property that you want dispose and get lower valuation for property that you want to buy. Remember, a dollar saved means a dollar extra earned!
The other groups of service providers also make a lot of money from property investors like us. They are bankers and lawyers. Smart property investors do not necessary purchase properties with their cash but leveraging on banks loans. The ability to get more loans from banks with lower interest rates would allow you to invest more with less cash flow per month! Another cost in property investment is lawyer fee. Therefore, networking with lawyers also helps to reduce the legal fees. Sometimes, lawyers also have latest news about trouble properties with default payments from the banks. These are good properties that most property investors like to lay their hands on
