Your Property Network: Book Review November 2013
Rob Moore’s book Multiple Streams of Property Income is a welcome addition to the selection of property books available. Targeted mainly at people who have been in the game for a while, he discusses how to transition from property investment to property business, however large or small you want that business to be. The book also, as the title suggests, covers how to diversify into other streams of income around property.
There is a wealth of information here that comes from Rob and his business partner Mark Homer’s experience of building up Progressive Property. Some of it refers back to Progressive’s earlier titles, reinforcing the how-to’s of property investing. But the magic in this one is how it helps you decide what to do next once your portfolio is up, running and providing a stable income.
You may have heard or seen Rob speak about The 6-Stage Property Investor System on the webinar and meeting circuit. This book goes into that system in depth. You will be able to work out which property income stage you are at, and what might be the best steps for you to take next.
Your Property Network Review
You have had some property education, made a start, bought a few rental properties. You may even be focussing on a particular strategy, such as professional Houses in Multiple Occupation (HMOs), flats for the LHA market, or whatever works in your particular area. You are fortunate enough to be getting some of the positive financial results that you were aiming for – in other words income or capital gain.
Two Types of Property Investor
My experience may be limited to a fairly small section of the country, but from what I have observed there seem to be two types of property investor: a) those who buy the occasional rental or development property alongside their job or profession and are content to slowly build a portfolio that will contribute to their retirement income, and b) investors who turn property into a business or their primary means of making a living. There is no right or wrong, good or bad, they are simply different approaches that work for different people.
For the latter group, Rob’s book is a gem. It addresses the “What Next?” question. Many people who start investing in property commit to attaining financial freedom; a number of those people, however, are also likely to hit a block at some point during that journey. That block can take many forms, but a common one is running out of funds. What Rob has done is to break the whole journey down into manageable steps, allowing you to identify where you are, and what the most suitable actions for your current stage might be.
What’s more …
He talks about some of the problems and challenges facing investors in today’s market and economic climate, goes into detail about the concept of leverage and the ways in which you can use it, and – a particularly useful reference in my view – gives a breakdown of the types of property businesses that might be appropriate once you get some tangible results through investing. He also helps us identify when it would be appropriate to diversify.
To my mind, this is a sort of combination of Rich Dad Poor Dad and The E-Myth, tailored to the world of property. Rob has drawn extensively from his and business partner Mark Homer’s experiences in building Progressive Property, a name that will be familiar to many readers of Your Property Network. Over the past few years, Progressive has risen from being a sourcing partnership to one of the most prominent property investment businesses in the UK, now encompassing training, information products and coaching/mentoring programmes alongside the longstanding sourcing and portfolio management services.
In Section 2, early in the book, Rob outlines four ways of generating income, applying the model specifically to property-related income before going on to discuss The 6 Stage Property Investor System. You may have seen him present this at a meeting on the network circuit and the book goes into the concept in more detail.
It may not appeal to everyone’s reading style. There are quite a few formulas and charts; personally, I think these are great learning tools – they are visual and easy to memorise, but The Other Half who is less “visual” found it harder to follow so it may depend on your learning style. The hardest thing I found was layout and navigation; with sections instead of chapters, it comes across a bit like a structured manual rather than a book. Perhaps this was intentional. My advice? Get over it – the content and message is worth it.
Who Is It For?
This is definitely a recommended read for anyone who has made a start in property and is not sure how to move forward. It will also benefit anyone who is thinking of diversifying into complementary income streams, or who wants to start thinking about an exit plan for their business. Even if you are very new to property, it will still be helpful as you will be able to identify your starting point on the chart and be prepared for the potential stagnation and turning points.
I had a sense while reading that this is a “grown-up” property book. It is about more than buying, selling or renting – that is covered in Progressive’s earlier titles. This is about building a serious business.
What I really got from Multiple Streams of Property Income was identification. After spending what feels like years thrashing around in Stages 1, 2 and 3, it came as quite a pleasant surprise to identify that I am actually further along the Roadmap than I had thought. As you grow and develop personally and in your property business, then chances are you might well grow out of strategies that worked for you earlier on. Market conditions change, you may want to take on bigger projects, you may choose to work with others to make your property buck go further. ‘Growing up’ is obvious when you think about it, but sometimes it takes someone else to come along and remind you how far you have come.