5 step plan towards your passive income
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Make a plan
My original 7 year plan was on butcher’s paper. My goals were my motivation, my driver, my inspiration. What did I need to do to achieve these goals? I was very bold and set milestones and decided on achieving a portfolio of 9 properties in 7 years. I achieved my property goal in 3 years!
We now have portfolio growth modelling to help investors plan. It is more predictable and reliable and the model will tell you what asset base of properties you need to get your desired passive income. Sounds easy? How many people do the paper plan or the portfolio modelling? Set the plan and then follow the plan.
Choose the right strategy for you
If you are investing for long term passive income, a strategy to buy properties in growth areas that are low risk, with rental demand, are hands off and pay for themselves (cashflow positive) may suit you better. We call that a set and forget strategy. Renovating, or developing, or subdividing may not be the strategy for you if you are time poor with work and family commitments and little prior experience. Choose your strategy first.
Find a mentor
Having selected a strategy that suits your risk profile and your experience, you need to find a mentor or advisor to guide you on your journey. The most important ingredient is that your mentor has already achieved success in the strategy that you want to follow. It will help shortcut your journey using their experience to get started and build a portfolio towards your passive income. Listen to your mentor.
Follow the golden rules
The golden rules of education, due diligence, and research are essential. You also need to know what questions to ask and build trust and relationships with ethical service providers before you make an informed decision to invest. Many potential investors get stuck at this stage wanting to research and know everything before they get started. They attend every seminar, read all the books, do endless research on the internet and become confused with too much information.
Take action and get started
Too much information can paralyse investors who are waiting for the perfect property. Fear of making a mistake can lead to doing nothing while they ‘think about it’. The most important step towards achieving your passive income is to get started and buy a property! You gain your experience on the way. You cannot be an expert first.
Listen to your mentor, have trust and take action based on your passion to achieve your goals. The journey may then be faster and less stressful than you think. Happy investing!