Why some investors fail to make money

Investors Fail

Having a DIY mentality can be one of the biggest causes of time wasting when investing in property. Failure to manage time wisely causes so many to fail in achieving their goals. There are a limited number of hours you can physically work in a day and so you need to utilise every minute wisely.
This is especially true when starting on a part-time basis as you will have a lot of time restrictions to begin with. Firstly, let’s look inside the mind of a typical DIY property investor and focus on the decisions that needs his/her attention and time draining tasks that need to be dealt with on an average day.
Due to page limitations, I have highlighted only a fraction of the important tasks that need to be addressed however, there are sufficient to illustrate the point

This graph illustrates some of the typical areas that may need your attention in sourcing properties.

PROPERTY INVESTOR
1. Sourcing Properties

     - News Paper

     - Magazines

     - Networking

          a. Development Evening

          b. Property Shows

          c. Seminars

          d. Clubs
    - Sourcing Agencies
    - Website
    - Viewing Properties
    - Negotiating
    - Estate Agents
    - lettingAgents
    - Auctios
    - Friends & Relatives
    - Researching Area

2. Selling
    - Solutions
    - Estate Agents
    - Letting Agents
    - Accountant
    - Surveyors
    - Mortgage Brokers
     - Viewings
    - Website
    - Negotiating
     - Revorbishment
     - Home Staging

3, Buying

4. Renting

5. Finance

6. Marketing

7. Administration

8. Refurbisment


So what’s the solution?
Outsource. This is the solution. Look at every task you need to get involved with and then find a trusted professional to do it for you. Looking for professionals or ‘Super Heroes’ that fit your needs and budget will itself take time but it must be in your plan if you are to succeed. There’s simply too much to do yourself. You might be saving £180 in painting the walls in your new house but if your spending 2 days doing this then someone else is sourcing the properties with over £10,000 profit. Isn’t that false economy?
When is it best to outsource?
To judge when it’s best to outsource a task or when to do it yourself, you need to assess what your time is worth. Then calculate if it’s better to outsource the job or if it’s better to do it yourself

 

How to calculate what your time is worth
Here’s an example of how you can work out what your time is worth.
Your ideal salary £80,000
How many hours a week do you work? 40
How many hours a week of non-productive time? 15
(Non-productive time is time spent where you are not actively making money including talking to
friends, surfing the internet, reading emails, answering phone calls, learning, traveling etc.)
How many productive hours a week? 25
How many working weeks a year? 46
25 hrs X 46 weeks = 1150 hrs of productive time.
£80,000 / 1150 hrs = £69.56 per hour
So, if your task can be done for less than £69.56 per hour then outsource it!