Sometimes , you may get emotionally attached to the project , but this might be detrimental to the reason why you went into this business in the first place . You might suddenly feel you do not really like something , and choose to spend a little more on one item , but then also see another and spend a little more there , and once this tap is open , the profit starts to dry up .
“ Just like any game , there are rules , and you have to know the rules if you want to win . Ask yourself what you can afford to spend upfront , what to reserve for repairs , and what profit you need to ensure it ' s worth your time and effort .”
Therefore stick to the well thought out original plan as far as possible . Think of the bank that you owe money to , think of partners that may have put money in as well as your next project .
THE CHALLENGES ?
There has been quite a large influx in the past of people calling themselves investors , some who knew what they were doing , and some who copied without understanding the business vision . What then tends to happen with the latter is that they would buy a well-priced property that has the potential for a profit , but without considering the following :
• Is there a huge demand for this kind of property ?
• Can the property be maintained financially ?
• Will the property be sold at the price the investor wanted ?
SA Real Estate Investor Magazine AUGUST 2022 63