The most effective wealth building strategy for real estate beginners

This is the first and probably the most basic strategy you will start with. It is used for those who do not have sufficient experience in the buy-to-let market.

In short, here’s how it works: once you’re able to invest, just buy a property or two and then stop. The one or two properties allow you to experience the process of buying, finding tenants, dealing with agents, arranging mortgages and all other aspects of the real estate process.

During this process, it’s important to have someone who can answer all of your questions and guide you through the process. But the real power of this strategy doesn’t lie in the practical side of investing, although that is important. It is in its ability to allow you to evolve mentally and emotionally or to accept that you are now a landlord, an investor.

I had a client who had paid off his property a long time ago, he was making around £20,000 a year, so he never thought he could build a significant portfolio. Over the years his home has doubled, doubled again, and doubled twice more. This left him with a significant amount of equity that he wasn’t using.

When he first spoke to me he mentioned that he had known for a long time that he had to do something but for years lived in fear of using his equity and worried when he invested and couldn’t find tenants when real estate prices plummeting and all other investor spending starting.

These fears were born out of a lack of proper education. So it is important to replace the old outdated beliefs with a new set of aligned beliefs. The reason we stop after two is so your emotional state can catch up with your portfolio. If you continued to build the portfolio, you would inevitably stumble or the stress would become too much.

Now all you have to do is decide how long to pause. That depends entirely on you. Don’t keep investing until you’re ready. Saying this, if you’ve been on the road for a year and haven’t started yet, you might be resting in your comfort zone. This is where the support of an experienced portfolio manager can ensure that you take the next step.