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Frequently asked questions and answers
Here we answer some of the most common questions we get
We get a lot of questions about property investments and about us and our courses. Here we have answered some of the most common ones. In the tab VIDEOS on our website, you will also find a selection of videos where we share additional information about what is required to succeed with real estate investments and how you can become financially free.
Why should you invest in properties?
Properties generally provides a stable and predictable return and is also a simple form of investment to learn and understand.
With the right knowledge you can easily learn to predict the market and minimize risks.
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The growing population and general housing shortage continue to generate a stable demand.
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Real estate is also called a real asset. These are considered to be safe and protected assets even at increased inflation. This is because both rents and market values ​​accompany inflation upwards and thus do not lose in value, such as non-invested savings capital.
In addition, properties lack a direct link to the stock market, which means that it is considered a safe alternative in comparison to other forms of investment, in particular stock market-related products.
As with all types of investments, there are of course risks with properties. But in comparison with other forms of investment, the risks are manageable in a completely different way. And there are many reasons why properties have always been considered a good complement in a stable investment portfolio.
The property market is influenced by a variety of factors such as interest rates, supply and demand, price developments and market trends. The biggest risk with properties is the lack of knowledge about how the market looks and affects and how you use the knowledge in the right way. With the right knowledge you can learn to understand and predict the market, manage the risks and ensure that you make secure property investments regardless of the business cycle. The biggest risk lies in the fact that you are looking for a quick fix and hope to get rich quick and have a lack of patience and thereby make rash investments.
It doesn't have to be. In fact, in many cases, for example, the Swedish property market is considered to be a more speculative and less profitable market than many foreign markets, owing to prevailing lease legislation, tax regulations
etc. The biggest risk of investing in real estate abroad is that you do not have the knowledge of the market you want to invest in and do not know how to handle currency risks etc.
The list can be made long over which aspects you need to keep in mind in choosing the right real estate market. Among other things, which rental laws and regulations prevail for you as a landlord and property owner, what type of investment strategies and financing opportunities are available, and how market trends, supply and demand look. The UK market meets many of the demands of professional real estate investors in order to be able to make secure investments with a stable return. In the VIDEOS tab here on our website we tell you more about why the UK is a safe investor market.
Is it risky to invest in properties?
Is it not risky to invest in real estate in other countries?
Why should you invest in the UK?
Why should I choose your services?
Do you not need a large amount of capital to
invest in real estate?
Property investments require a great deal of capital. Even if you in some cases have the possibility of external (bank) lending, as always, some private financing is required. But that does not mean that it needs to be your own money. You can find alternative routes to financing, either through private financing or via alternative external financing solutions.
However, if you find good properties to invest in, financing is rarely a problem. However, you need the right knowledge to find and make good, safe investments where you have a safety margin to secure loan costs, interest rates and of course your own return. In our courses, we teach you creative financing even if you do not have access to your own start-up capital. We show you how to bring in private financing, how you succeed with external borrowing and how you ensure that the calculations are combined and have the required safety margin.
How do I get started with my own property investments?
By educating yourself and seeking the help of others who have already succeeded! Set clear goals with your investments and find the investment strategy that suits you. Surround yourself with the right people who support you and help you forward. A mentor who has succeeded with what you want to do is invaluable. Properties is a long-term form of investment and there are no shortcuts. There are more or less serious players in the market that offer ready-made package solutions, co-investments, crowdfunding etc, in properties. This can of course be an easy way to get started with your own investments, but remember that as long as you do not have your own knowledge in the area and completely rely on the knowledge and experience of others, it is rather speculation than investments. Knowledge is power and if you want to make safe investments, the right knowledge is what it takes.
How does Brexit affect me as an investor on the UK real estate market?
As we can see, Brexit has so far had no direct negative impact on the property market in the UK. The housing requirement remains high and the foundations and regulations that apply to you as a property owner and landlord are not affected. As a professional investor, you drive your investor business through British companies, which means you are classified as national business owners and not foreign nationals. Something that benefits you both from a tax perspective and your opportunities to get external (bank) financing.
What we notice is a certain lock-in effect and caution on the market and with loan institutions. This means that you need to be extra careful about which investment strategies you choose, which areas you enter and that you add an extra margin of safety to your calculations. As a professional property investor, the success is in understanding and predicting the market and knowing how to do profitable business regardless of the business cycle and regardless of which political winds are blowing. The world is constantly changing, you have to learn how to handle changed conditions and turn them to your advantage.
To quote Warren Buffet: "Be fearful when others are greedy and be greedy when others are fearful."
Isn't it difficult to invest in properties?
Both yes and no. Real estate investments are technically easy to learn and familiarize yourselves with. It is logical and there is a lot of statistics and history to take part in. Anyone can learn to understand the property process, familiarize themselves with laws and regulations, make in-depth market and area analysis, and the calculations and calculations required. However, this does not mean that it is easy to make property investments. For in fact, it is far more than just technical knowledge.
Who you are as an investor determines how successful your investments can be. It's about your attitude, your thought patterns and beliefs. Your mindset and your self-knowledge. You need to be able to handle your fears and scarcities, have the ability to make rational decisions, although feelings turn frivolously within you and you must possess the courage to make new decisions when conditions change. To have the ability to see adversity and resistance as developing. You need to be prestigeless, be able to ask others for help and have strong patience. You need a strong self-confidence and trust in others without being naïve and trusting completely blindly on anyone.
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For this reason, our courses are also designed in the way they are and combine technical investment knowledge with personal development and economic approaches to also strengthen you in the role of investor and who you are. All so that you can also make good investments in practice.
Apart from the fact that our courses give you the technical investment skills required to get started and succeed with your property investments, you also get the support and the personal development that are crucial for you to be able to grow into the role of investor and also become financially free. We are Sweden's largest educational company in real estate investments in the UK and have helped nearly 1,000 people get started with their own real estate investments and find a way to financial freedom. This means that we have also seen and been able to measure the long-term positive effect of our education. All our course leaders and mentors are professional investors themselves and have made the journey from beginner to where they are today. Therefore, they know what you need to succeed. We also have a team of on-site experts in the UK who will help you with guidance on-site.
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We can, of course, talk all day about ourselves and why you should go to our education. But the very best thing is if you listen to what our course participants themselves think. Under the REFERENCES tab, you can take part in what some of our course participants have to say about us and our courses.
Rather, the question is how to ensure that you get back your invested capital at exactly the TIME you want. Of course, there is never a 100% guarantee that you will get back all your invested capital regardless of which investment form you choose and regardless of how accurate the analyzes and calculations you have done. However, a property is a real asset and even if the market value falls from time to time, the property market is the one that has historically recovered the fastest. Therefore, the biggest risk is that you lock capital longer than you initially thought you would.
Before entering a property investment, you need to add an alternative strategy and plan for how to proceed if your investment takes longer time then expected, in addition to an initial and basic financing plan. As a professional investor you always have to think based on a portfolio strategy and therefore there are also opportunities to find creative financing solutions if it turns out that any of the properties in your portfolio do not deliver as you intended. This is part of the risk management you need to learn as part of being able to make safe investments. In our courses, we teach you to find alternative paths if you would end up in a similar situation.
How do I know that I will get back my invested capital if I invest in properties?
How do your educations work and when do they start?
All our courses / programs have an online-based e-learning platform where you have unlimited access to course material, video lessons, bonus material etc. for life. Every week, we hold live Q&A sessions / group mentoring where we in the team answer all your and your fellow students' questions during approx. 1-2 hours. You have access to these questions during the entire 12 months from the start of your course / program. You set your study pace and course start with support from your mentor. Since all our courses are online, they start as soon as you register.
Our Elite Master program also includes mastermind meetings as well as live educations on site in the UK and in Sweden. These take place through classroom teaching and run a few times a year. The course cost is included, but you pay for travel, food and lodging yourself. If you do not have the opportunity to participate in these live courses, they are always recorded in HD quality and you are offered to take part of these afterwards at no cost.
Isn't it difficult to analyze and calculate on
property investments?
Property investments are easy to familiarize with. It is logical and there is a lot of statistics and history to take part in. Anyone can learn to understand the property process, familiarize themselves with laws and regulations, to make in-depth market and area analysis, and to understand how all this correlates with each other. And no, it is not at all difficult to calculate on real estate investments. If you master elementary school math (the four counting methods) then you have the basic knowledge needed to make the right calculations. The calculations are easy to learn.
Which areas should I invest in?
It is difficult to give an easy answer. Which specific area and market you are investing in depends entirely on your unique situation, your investment strategy, your objective with your investments (ROI) and your access to capital. Do you want to build capital (buy and sell) or create cashflow through rental income (rental)? What kind of rental form and target group of tenants do you want to focus on? And do you want to be active or passive in property management?
As you can see, this question is not easy to answer. Start by setting up your investment strategy and goals with your investment. Then get help from someone who is active in the market you are interested in and take part of their experience. And finally, learn to do in-depth area analysis to ensure that the area you are looking at really matches all your requirements in the end.
During our advanced training programs, you will receive concrete tips and our recommendations on which areas may be appropriate for you.
What do I do if I am interested in your educations?
We always start with an unconditional personal strategy call (about 20-30 min) by phone or online to ensure that we are a good match for each other.During that conversation we will find out your goals, what you want to achieve and what prerequisites you have etc. If we see that we are right for each other then we will give you a recommendation on which of our courses or training programs would best suit you.
All of this we do as a part of our high quality assurance. Partly to ensure that you get what you want from our courses, and that we bring in the right course participants. We have a limited number of spots to be able to provide the best service to all our participants. Therefore, we are also concerned that the right people go our education.
If we decide to continue together you will get all the information you need regarding payment, payment terms, course start etc. from the person who holds the strategy conversation with you.
Do you want to know more about us and our education and maybe book a strategy interview?Then send an email to: info@propertyeffect.com
Does it take a lot of time to invest in properties?
Our goal is to help you make your investments as passive as possible and that you should have the opportunity to manage your investments remotely and spend minimal time managing all parts of the real estate process. Therefore, we teach you how to build a professional investor team that handles most parts of it in your place. From finding properties to managing renovation, and/or selling. But of course, property investments take a great deal of time, especially in the beginning when you have a lot of knowledge to take part in and while you are building your investor team, your portfolio and systematizing the business.
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The scope of the amount of work and time spent depends, of course, also on the extent and complexity of your property portfolio. Properties can never be completely passive as long as you own the assets yourself. But the question is whether you even want to. The successful investor builds a business around his properties and creates a new, alternative career in the industry. Of course, being a business owner, regardless of industry, requires your review from time to time. If you want to make your investor activity more passive, the secret is to find ways to outsource your back office / administrative tasks.