The six essential steps to starting your buy-to-let business today

The success of a buy-to-let real estate investment business is a well-defined real estate investment plan by visualizing and quantifying the end goal (big picture) with measurable real-life details and regularly reviewing your progress.

Here are the six essential steps to starting your buy-to-let business today:

1. Create your legal structures

The biggest mistake new buy-to-let real estate investors make is finding the bargain of a lifetime without having the right legal structure to invest. Make sure you have the correct legal structure in place by professional property attorneys BEFORE you make an offer to purchase.

2. Develop your property sourcing system

Successful buy-to-let property investors have a number of unique “property trading” network marketing and sourcing systems. They never buy properties at market value. Invest enough time and effort to build your supply network.

3. Establish a professional financial system

The financial institution is the most important business partner of buy-to-let investors and they love investors who know what they want and how to get there. Build a lasting relationship with a successful, proactive bond originator or financial institution that understands your Ownership Plan.

4. Hone your negotiation skills

Practice saves you money. Engage motivated salespeople in real life and practice your negotiation skills. You do not have to sign the offer to purchase if you do not feel comfortable doing so. The next deal is just a phone call away.

5. Practice your technical due diligence

The second biggest mistake new buy-to-let investors make is rushing through detailed property due diligence. Practice your due diligence skills and force yourself to do ALL the numbers on paper or in a spreadsheet and NOT in your head and NEVER get excited about the property. Successful investors always make unemotional offers by strictly following their investment criteria.

6. Review the progress of your Property Plan regularly

Annually review the milestone achievement of your real estate plan and adjust it based on the latest market intelligence and the state of the real estate market cycle. The ultimate goal of a successful buy-to-let real estate investor is to become financially free and enjoy the ride. Sometimes it takes longer than anticipated, but perseverance will get you to your ultimate goal.