Imagine you had an unlimited supply of money. You wouldn't need to worry about the various important dates that go with each purchase. You'd write a cheque immediately and be done with it. But coming back to reality, it does matter when you make payments.
Prior to working in property I owned an international franchise for a personal development self study course/seminar company. I would travel around the country giving seminars and conducting teleconferences. Throughout this time l realized a few things...
The question I pose to most of my clients when I first meet them is how do you create income from property? I get many different answers but in actual fact there are only 3 main ways of creating income from property.
I had a client who earned in excess of £100,000 yet only had £30,000 in equity in property. Now normally I would apply the "you spend your income and I will spend your capital rule" but in this case my first suggestion was different.
This is the first and probably the most fundamental strategy that you will begin with. It is used for those without a lot of experience in the buy to let market. In a nutshell, it works like this...
It may seem like an ambiguous term to use but portfolio is the way we describe two or more properties that you are currently controlling, managing or owning for profit. But there's much more to it than that.
My biggest bugbear in property is having surprises. In any other aspect of life I love the joys or challenges a surprise can bring, but when it comes to property it is just something I try to avoid.
The "2 year cash flow" is one of the most important concepts you'll learn. It's a simple formula that most people forget to calculate prior to committing to buying a property, yet it will guarantee the long term health of your portfolio
The one thing I have learned from investing in property is that it doesn't matter how good the deal is, unless you can get a tenant it will soon turn into a very painful financial decision. There's one sure way to ensure you don't fall into this trap.