Many budding property investors are DIY enthusiast or from a building or similar background, so they think it will save money if they do any refurbishment or renovation work themselves. However – should you really do all the work yourself? This is another question that comes up all the time. Well, it depends how much money you want to make.
Should you do all the work yourself when it comes to making money from investment property if you want to make serious money? – In a nutshell – NO!
People think that doing all the work themselves saves lots of money. However, the facts are the money saved is a false economy, when you work out that you could have done six deals in that time and had other people do the work and you just supervise and make sure everything goes as much like clockwork as possible.
If you had got other people to do most of the work might have made a 5 fold profit on what you would have made with that one property, even after paying all the builders etc. Plus – doing all the work yourself means you have created another 9-5 or more likely at 8am to 11pm seven day a week job for yourself – is this really your goal?
If you enjoy doing the work yourself, then sure go for it. However, be aware that you are hindering your chances of creating real wealth. You may do okay and make more money than the average person on the street, but will you become a property millionaire? It’s highly unlikely.
If you really enjoy doing the work yourself, then why don’t you work on one project yourself and have people you employ work on others. At the beginning you might feel like you don’t have the finances to have a few projects going at the same time. That’s understandable, and hence you might be restricted and feel you have to do the first few yourself. However, after you get these out the way I would strongly advise that you start planning how to take a more supervisory/planning role than a hand on, working all day and night role.
Once you get in a rut and in the habit of doing it all yourself, you might find it difficult to break out of it. So wean yourself off doing all the work yourself as soon as possible.
This is a philosophy with everything. Before you even start, you should be planning how to take yourself out the picture. That might mean hiring someone at somewhere to create and manage your website for you as well as using letting agents to manage your properties. Basically, delegate as much as possible so that you can look at things from a bird’s eye view since then you can effectively manage the process. If you are too busy working in the process i.e. renovating the property yourself etc, then it is difficult to manage the whole process and you often become a bottle neck stopping your own progression.
If you can adopt this strategy of taking yourself out of the process in most of your businesses then you will probably infinitely more successful, relaxed and happy.