PROPERTY INVESTING GUIDE

FOR BEGINNERS

WRITTEN BY

SHANE HINDOCHA

WWW .SHANEACADEMY .COM

www.shaneacademy.com

While property seems to be the go-to strategy

for safe, secure and stable investment, it is

surprising that people are willing to put down

huge amounts of money without knowing what

they are trying to achieve and how a property

investment is likely to perform.

"You can probably blindly buy a property in

England and as long as you can service your

debt, it is likely to make money over time. The

trick is, how do you shorten this period of time

in which money is made? How do you find

properties that are likely to go up in value

rapidly whilst simultaneously negotiating a

discount on these properties? That is the trick”

says Shane Hindocha, founder of Shane

Academy. “All you need is a process and a

system.”

INTRODUCTION

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UNDERSTAND YOUR LIMITATIONS

What is stopping you from progressing?

-Lack of capital? Well, you must learn how to

raise capital then.

-Lack of education? Learn how it all works.

-Lack of a network? Develop one.

-Lack of time? Build a reliable power team.

KNOWLEDGE

"Like most things in life, the more you know

about a subject, the better you're probably

going to do in it," says Shane.

It always starts with knowledge. You don’t

know what you don’t yet know. Investing in

yourself and having that knowledge could

save you or make you thousands of pounds

years into the future.

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RESEARCH Learn, develop and use a Due Diligence

process. Be strict with yourself. There are

certain things you MUST look for before

investing in a property.

JARGON Familiarise yourself with the various phrases

and abbreviations in the property investment

industry. There are 8 you MUST know.

CALCULATIONS Get acquainted with the popular and useful

calculations that are often used when

reviewing property investment deals. There

are 4 main calculations you should know at

the very least.

UNDERSTAND THE MARKET What has happened will give you an idea into

what may happen in the future. There are

some simple ways in which you can find what

has happened in the past.

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Here are 11 steps you can follow as a guide

to help you when investing in properties.

1 DEPOSIT

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ACCESS TO FINANCE

TRANSACTIONAL COSTS

CONTINGENCIES

ACQUISITION COST

Do you have enough money to put down a deposit for a

property? We suggest £25,000 is a good starting point.

Do you know if you can get a mortgage? If so, how much can

you borrow? It is best to speak to an expert mortgage broker

and get this information.

Allow for legal fees, mortgage broker fees, mortgage

valuation, property finder’s fees & stamp duty land tax.

Allow for mortgage payments, 8-weeks rental void period,

service charges, ground rents, repairs, tenant-find cost, lettings

management costs, your own tax liabilities.

What is the exact amount of money that is likely to leave

your bank account initially to make this purchase?

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INCOME

CASH FLOW

CAPITAL GROWTH

EXIT STRATEGIES

RETURN ON CAPITAL EMPLOYED

BELOW MARKET VALUE

What is the likely rent now? What is the projected rent

over the next 5 years?

How much money will you be making in a year considering

all the contingencies?

By what percentage has the area been rising over the

last 10 years? What do you think is likely over the next 5

years?

Understand that in property investment, you can either sell

the property (hopefully at a higher value), rent it out and earn

from the rental income and/or re-mortgage a property to take

some equity out (then you may use this to buy another

property investment)

How well is your money actually working for you

dependant on your exit strategy?

Now...can you secure this property below market value

to increase your performance?