For more information go to

www.SimpleRealEstateCourse.com

 INVESTING IN REAL ESTATE

 

This article was written by Bibi Bunmi Apampa a Business Coach  at  www.MyBusinessCoach.biz 

 

True wealth is building a passive income stream and real estate is a great path to follow in building a passive income stream.

One undeniable habit of millionaires is that they keep their wealth in real estate after making their money. An example if you take £1 And double it 20 times you will get a million pounds simple but not easy to do.

 

 However it is possible to be financially Independent just by buying one investment/ rental property a year. Buying right is far more important than buying frequently. The income your real estate generates is far more important than how many properties you own.

 

 

  A.PRINCIPLES OF REAL ESTATE INVESTMENTS

   Real Estate investment can be viewed under five categories


  1. Your home 
  2. Rental property – buy to let 
  3. Flat Hotel / Bed and Breakfast 
  4. Flips – build/buy, renovate/decorate and sell 
  5. Commercial property – shops, offices warehouses etc

 

   WHY NOT PROPERTIES – what are the reasons people donot invest in properties e.g.

 

  1. donot know how to start 
  2. Donot have the down payment 
  3. Negative stories – property crash, repossessions of houses 
  4. too busy working making a living 
  5. Money risk if investment is in wrong area 
  6. Fear and uncertainty 
  7. Property management risks – bad tenants 
  8. Laziness / procrastination 
  9. Not the right time 
  10. Negative friends    

   

All can be summarised under two headings Fear and Ignorance. The antidote or remedy is applied knowledge and information

     

     WHY PROPERTIES

  1. Passive income 
  2. Sense / feeling of achievement/accomplishment 
  3. Security – old age pension 
  4. Fixed tangible asset can be used as collateral 
  5. Legacy for children 
  6. Control of ones destiny 
  7. Leverage – control a large investment with small amount of money 
  8. Tax benefits 
  9. Demand for rental property exceeds supply 
  10. Growth potential and capital appreciation

  11.  

    B. FINDING THE RIGHT PROPERTY AND TENANTS


    To find the right property starts with you reprogramming your mind. View yourself as an investor not a labourer. Labourers sell their time to generate income; Investors acquire assets that generate income. “ As a man thinketh in his heart so is he “

     

    You have to see yourself as a real estate investor before you can become one. Buy or make professional looking business cards. The simple act of putting your name on a business card that says you are a real estate can give you the encouragement to begin. As other people begin thinking of you as an investor, opportunities will start coming your way.


    HOW TO FIND BARGAIN PROPERTIES – In real estate investment the most important factor is LOCATION, LOCATION LOCATION.


    1.      LOOK FOR MOTIVATED SELLERS


    ·        Couples getting married or divorced


    ·        Sellers relocating


    ·        Couples retiring – converting home equity to retirement income


    ·        Probate / inheritance


    ·        Sellers in financial trouble – never take advantage, structure your offer to make it a win win situation


    ·        Foreclosures


    ·        Old dilapidated fallen “ FOR SALE “ sign


    2.      CLASSIFIED ADVERTS


    e.g.  “PRIVATE INVESTOR WANTS TO PURCHASE HOUSES AND PROPERTIES FOR CASH”


    “ HOUSES WANTED FOR CASH, ANY CONDITION TENANTED CONSIDERED”


    3.      HIGHER AND BETTER USE TECNIQUE


    ·        Warehouse to Apartments


    ·        Hotel to flats


    ·        Big house to Multiple Living Facility (MLF)


    ·        Nursing home to multiple residence


    ·        Two bedroom house to three single room shared accommodation


        4.      PROPERTY SOURCING COMPANIES


        5.   Off PLAN PURCHASE


    6.      PROPERTY HOTSPOT AREAS


    7.      BUYING AT AUCTIONS


    8.      MISCELLENEOUS – Insider Information, future events in news e.g. Olympics, new town developments, Industrial Estate development.


    For more information go to

    www.SimpleRealEstateCourse.com


    FINDING THE RIGHT TENANT


    This depends on three factors


    1.      The property


    2.      You – the investor or property manager


    3.      The Lender


    THE PROPERTY –

    The type of property determines the type of tenant if one bedroom house or five bedrooms, If it is in an upscale area or depressed area, and the state of the property.


     THE PROPERTY MANAGER / INVESTOR – In managing the property, you have to be cautious, as the tenants have to be people you can deal with as a general rule avoid

    1.      People you cant communicate with eg people who cant speak English


    2.      Young people under 25 – The tenancy will only last as long as the relationship lasts


    YOUR LENDER check with your lender in case there are clauses on type of tenant you can have. The main exclusions are DSS claimants and student lets.

    ADVERTISING FOR TENANTS


    ·        Contacting local council (free)


    ·        Advertising with large employers (free)


    ·        Contacting Accommodation projects (free)


    ·        Classified Adverts in local press


    ·        Through letting agents


    ·        On the internet

 

For more information go to

www.SimpleRealEstateCourse.com

 

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