In this article I will be addressing common worries of investors: people who agree to invest in opportunities for a greater return on their capital, such as a property deal.
If you were an angel investor, what sorts of things would you be worried or concerned about when looking to invest in a deal?
If you were an angel investor, what sorts of things would you be worried or concerned about when looking to invest in a deal?
Here are a couple of common worries and concerns:
Investor Concern: Money sat in the bank earning very little!
Today’s research shows the best interest rates right now... with the top earner being just 1.11% APR - ANNUAL PERCENTAGE YIELD!!!
That means if you have £20,000, your interest PER YEAR is only like to be around £222... yes it’s alright, but it’s nothing to get that excited about.
Especially when you take into account the current UK inflation rate... 😱
A better way to grow your wealth is to invest it.
Say for example, into a hands-free passive property deal, where your return on investment will be much higher than any current UK bank interest rates.
Property really does enable us to beat the banks! 💷 💷 💷
Today’s research shows the best interest rates right now... with the top earner being just 1.11% APR - ANNUAL PERCENTAGE YIELD!!!
That means if you have £20,000, your interest PER YEAR is only like to be around £222... yes it’s alright, but it’s nothing to get that excited about.
Especially when you take into account the current UK inflation rate... 😱
A better way to grow your wealth is to invest it.
Say for example, into a hands-free passive property deal, where your return on investment will be much higher than any current UK bank interest rates.
Property really does enable us to beat the banks! 💷 💷 💷
Investor Concern: No time or knowledge to invest funds
Whilst it’s important that you have an overview of how the investment process works, it’s not always necessary that you know everything about property: the area, the strategy, the tenant type, the project type, the refurbishment works, and the refinance process.
Add to that that you may not physically have time to research all the above - nor the inclination!
It is quite acceptable, and actually very common to be an armchair investor.
That means you are someone who invests passively, with as a hands-free option i.e. you don’t get directly involved in the project’s happenings day-to-day.
You just invest, then sit back and watch the big picture unfold, knowing the project is working to build your wealth.
So no, you don’t have to be a property expert in order to invest in property.
You just have to find someone who is!!
Whilst it’s important that you have an overview of how the investment process works, it’s not always necessary that you know everything about property: the area, the strategy, the tenant type, the project type, the refurbishment works, and the refinance process.
Add to that that you may not physically have time to research all the above - nor the inclination!
It is quite acceptable, and actually very common to be an armchair investor.
That means you are someone who invests passively, with as a hands-free option i.e. you don’t get directly involved in the project’s happenings day-to-day.
You just invest, then sit back and watch the big picture unfold, knowing the project is working to build your wealth.
So no, you don’t have to be a property expert in order to invest in property.
You just have to find someone who is!!
Investor Concern: How secure and safe is their money?
This is a common concern for people, because with the volatility of other investment methods, you want to be sure that you will get your money back.
Stocks and shares go up and down in value, and you may end up losing money.
Ditto with cryptocurrency and trading.
Banks are relatively safe with your funds (assuming they don’t go bust!), but your interest rate is poor.
Property is safe because it is a tangible asset, built of bricks and mortar. It really exists - so should the worst happen, such as the developer unexpectedly dying during the project (cheery!), at least the investor will still be able to sell off the property to recoup their funds.
Not only that, property consistently increases in value over time, meaning your money really is secure within a property deal.
Ever heard the term “safe as houses”?!
That applies to your property investment too!
This is a common concern for people, because with the volatility of other investment methods, you want to be sure that you will get your money back.
Stocks and shares go up and down in value, and you may end up losing money.
Ditto with cryptocurrency and trading.
Banks are relatively safe with your funds (assuming they don’t go bust!), but your interest rate is poor.
Property is safe because it is a tangible asset, built of bricks and mortar. It really exists - so should the worst happen, such as the developer unexpectedly dying during the project (cheery!), at least the investor will still be able to sell off the property to recoup their funds.
Not only that, property consistently increases in value over time, meaning your money really is secure within a property deal.
Ever heard the term “safe as houses”?!
That applies to your property investment too!
Investor Concern: Not knowing who to trust with their money.
This is without a doubt the most important part of any investment.
Anyone can say anything to anybody in order to extort money from them - don’t let yourself be fooled and taken for granted by people who do not have the best of intentions for you.
If you are investing finance with someone for a property project, please ensure they are confident and competent at bringing to the project:
- knowledge
- skills
- education
- experience
- network
- power team
- problem solving
- focus
- time
- energy
- honesty
- integrity
If you’re not sure that they can provide all this, then walk away from the deal!
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𝗧𝗼 𝗶𝗻𝘃𝗲𝘀𝘁 𝘄𝗶𝘁𝗵 𝘀𝗼𝗺𝗲𝗼𝗻𝗲 𝘆𝗼𝘂 𝗰𝗮𝗻 𝘁𝗿𝘂𝘀𝘁 𝘄𝗶𝘁𝗵 𝘆𝗼𝘂𝗿 𝗺𝗼𝗻𝗲𝘆, 𝗴𝗲𝘁 𝗶𝗻 𝘁𝗼𝘂𝗰𝗵 𝘁𝗼 𝗳𝗶𝗻𝗱 𝗼𝘂𝘁 𝗵𝗼𝘄 𝗜 𝗰𝗮𝗻 𝗵𝗲𝗹𝗽 𝘆𝗼𝘂.
This is without a doubt the most important part of any investment.
Anyone can say anything to anybody in order to extort money from them - don’t let yourself be fooled and taken for granted by people who do not have the best of intentions for you.
If you are investing finance with someone for a property project, please ensure they are confident and competent at bringing to the project:
- knowledge
- skills
- education
- experience
- network
- power team
- problem solving
- focus
- time
- energy
- honesty
- integrity
If you’re not sure that they can provide all this, then walk away from the deal!
▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️
𝗧𝗼 𝗶𝗻𝘃𝗲𝘀𝘁 𝘄𝗶𝘁𝗵 𝘀𝗼𝗺𝗲𝗼𝗻𝗲 𝘆𝗼𝘂 𝗰𝗮𝗻 𝘁𝗿𝘂𝘀𝘁 𝘄𝗶𝘁𝗵 𝘆𝗼𝘂𝗿 𝗺𝗼𝗻𝗲𝘆, 𝗴𝗲𝘁 𝗶𝗻 𝘁𝗼𝘂𝗰𝗵 𝘁𝗼 𝗳𝗶𝗻𝗱 𝗼𝘂𝘁 𝗵𝗼𝘄 𝗜 𝗰𝗮𝗻 𝗵𝗲𝗹𝗽 𝘆𝗼𝘂.
Kellyann Martin is a Property Investment Strategist based in Leeds.
For more details on working with Kellyann, visit the website
