In this post we will explain the concept of hands free property investment. It is a great option if you have the capital to invest but do not have the time, or the inclination, to get involved with the day to day tasks associated with successful property investment projects.
Why Hands Free Property Investments are Becoming more Popular
If you know anything about property investment projects then you will appreciate that a great deal of time and effort has to go into them to make them successful. The first thing you need to do is to find some suitable properties for your investment project. This will require the establishment of good connections with local estate agents.
Once you have these connections you will need to meet with these agents to see what is available on the market. Each agent will provide you with a list of possibilities and then you will need to analyse each of these to see if they meet your criteria. This will take a lot of time and you may end up with nothing that is suitable.
Choosing the right location for your property investment project is becoming more and more important these days. If you are in the buy to let market for example, you need to find a property that is in a high demand area and that is the right type of property to offer to tenants at the highest rental prices.
A lot of these properties will require renovations to bring them up to the standards that you personally set, as well as to meet the demands of local and national laws. This means that you will need to find reliable local contractors and manage them to ensure that they deliver on time and within budget. Not an easy thing to do.
You will probably need to arrange the necessary financing to purchase the property for your investment project. The best way to do this is to use a specialised mortgage broker that has your interests at heart and will find you the best deals.
Before you purchase the property, you need to have it checked by a surveyor to ensure that you are not buying a heap of trouble. If you are going to borrow money to finance the project then the lender will insist on this.
Finally, you will need a competent conveyancing solicitor to take care of all of the legal aspects on your behalf. Finding one that is competent and reliable can be a real challenge for you. You need everything to go smoothly on the legal side but sometimes it just doesn’t.
The bottom line here is that there is a lot that can go wrong with a property investment project. You need to be on top of every little detail to ensure that your project is a success and that you achieve your goals for the investment.
Investing in Hands Free Property Investment Deals
There are companies like CPG that have property investment deals that are truly hands free. They have done all of the hard work finding the right properties and are looking for investment partners.
These companies will manage every aspect of the property investment projects which includes identifying the right properties, managing any renovations, taking care of all of the legal aspects, finding tenants for the property and property management.
All you need to do is to agree an investment amount and they will do the rest. The company will provide you with regular updates and their target completion date for the project. You can then start to see a return on your investment.
Crowdfunding your Property Investment
Another form of hands free property investment is the use of crowdfunding. Here you can make an immediate investment in a property and start to make money from it very quickly. Here are several crowdfunding platforms available these days.
As the name suggests, you will invest as part of a crowd here. This is good if you want to invest less money than you would with a company that has ready to go deals. You can get started with crowdfunding with as little as £1,000 and there is no limit to the number of investments that you can make.
It is essential that you fully understand the property crowdfunding process prior to making any investments. As with any form of investment, there are risks associated with property crowdfunding. The Financial Conduct Authority regulates both P2P and equity lending associated with crowdfunding.
You need to perform the necessary due diligence before making any property crowdfunding investments. Choose crowdfunding websites that have been around for a while and have a good track record.
We recommend that you invest in small amounts first. Monitor these investments to see how well they perform and then you can increase your investment amounts. Crowdfunding is a fairly new form of hands free property investment but it can be lucrative if you do everything right.
The Advantages and Disadvantages of Hands Free Property Investment
As with any form of investment there are advantages and disadvantages to hands free property investment:
- You can invest in multiple projects to spread your risk
- You have more choice
- You don’t have to source properties for the projects
- You don’t have to do any of the work
- You don’t need any experience
- You can make good returns
- A developer could let you down
- You are not in total control
- Investments can go down as well as up (this is true even if you do everything yourself)
Is Hands Free Property Investment right for you?
If you are the kind of investor that likes to be in full control of everything and manage all of the day to day details associated with a successful property investment project then hands free investing in property may not be the best option for you.
But if you are looking for a long-term investment strategy that is stable and requires little to no effort on your part, then hands free property investment is certainly worthy of consideration. With a hands free investment you will save your precious time to do other things that are more important to you.
There can be a lot of headaches associated with property investment that can be very stressful. Anything from contractors dragging their heels to slow conveyancing solicitors to tenants that cannot pay their rent can quickly turn into a difficult situation.
You need to perform your due diligence whichever way you decide to go with hands free property investing. Make sure that you check out any potential developer, property investment company or crowdfunding deal.
Hands free property investment has a lot of advantages especially if you are not experienced in running your own successful property investment projects. It is a real time saver, and you have a lot of choice. So, make your first move into the world of hands free property investing today.