Mistakes are made when you rush into a situation. You need to surround yourself with people who are doing it and doing it well and don’t make any decisions until you are 110% certain of what you are doing and 200% certain that you can afford it. Above all, don’t quit the day job until you are ready.
Introducing Dale Wild from Pegasus Investments and Landlord Furniture Co.
What Has Been Your Biggest Mistake in Property Investment?
Dale Wild: Mistakes In Property
Amy: So, what’s been your biggest mistake or biggest loss in property and how can any of our viewers learn from this.
Dale: Sometimes you can go a little bit too quickly which puts a dent in the cash flow.
So, me and my business partner, in one of the businesses, where the chunk of our properties are, we’re quite lucky that we’ve both got other incomes.
If we had been… What people tell you to do is, ‘Just go for, quit your job’. It’s nonsense. It doesn’t work.
I’ve seen it quite a lot because we do a small mentoring package and one of the guys has done exactly that. He had a couple of hundred grand, which is a lot of money. He has invested in property but he’s done it so quickly… Then, all of a sudden, all his money is tied up. He owes a little bit of money out. The figures will balance in 12 months or 24 months but right here, right now, you need to keep it all under control.
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Dale: At one stage, I think we’d bought four houses and a month to convert. And then it was just, kind of… We’re paying for this. It was quite amusing, really but you’ve just got to shrug your shoulders and we spoke to a few people who could bridge us some money.
And we did it but there were some twitchy moments where it could be make-or-break if you didn’t have a strong partner, a strong business partner or a fat wallet.
Amy: It’s easy to get carried away. I spoke to somebody who was similar. They’d inherited about half a million pounds and they went to the auction and they’d gone to learn about the auction process so they could bid the next time.
And they got excited, in the room and they’d spent the whole half million pounds in this auction house. Then they went to the auctioneer and said, ‘Oh my God, I can’t afford to pay for these properties’, but they had to buy them, it’s legally binding.
I think, with property, there is a lot of momentum and there’s a lot of, ‘My house is bigger than your house’. And people get excited and they get carried away and I think that’s a great tip, is almost, that you should rein yourself in a little bit.
Dale: Definitely so and do your numbers over and over again.
Amy: And be really generous in the way you do your numbers, as well.
Dale: Yeah, definitely. And the more that you do, the more you get experience.
I think a lot of people in property, they like to have this, ‘I own x amount of properties’ and you know it’s kind of what we do just as long as it works.
Amy: I own this many mortgages, it could be. It’s a lot of smoke-and-mirrors, sometimes.
Dale: But there are people out there that are like that and then there are people out there that I try and connect with them and socialise with that are, what I class as, on another level, regardless of the number of properties.
They earn really good money out of them. They’re very systemised. They’re methodical in what they buy, where they buy it, how they buy, their build-teams… And you just see the whole process, within it and I’ve learned a hell of a lot from people like that.
And not, sort of, get wound-down into some of the communities that you can get involved in. Like, you can go to property events and everyone’s got a different strategy and it’s really, really easy to say, ‘Well, I could do one of those or could do one of those… I could do a rent-to-rent…’ And all of a sudden you’re stretched so thinly that actually, nothing is getting done properly.
So, the best advice I could give anyone is, surround yourself with people who are actually doing it, don’t make any decisions until you’re 110% certain of what you’re going to do and how much it’s going to cost and what you can afford.
Amy: I totally agree and that’s great advice. Thanks, Dale.
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