Discover your Steps to Freedom here! Using property investing techniques along with financing methods that benefit you, you can gain financial freedom in your life.
Your Express Elevator to Real Estate Investing Success
The way in which you obtain and use property investmentfinance can make a sizeable impact on the rate at which your property portfolio grows.
I'm sure you've heard it said before but it is absolutely true that
The golden rule in real estate investing is other people's money (OPM).
This is the most important lesson you can learn!
Yes it's true, the golden rule in real estate investing is other people's money.
Use Other peoples Money
What this means is that whenever you are buying an investment property you should be aiming to pay as little as possible from out of your pocket, and obtain real estate investment finance for as much of the purchase price as you can. This is a vital factor in real estate investment property purchasing.
"I'd Rather not have any Debt"
"I have enough money, I'd rather pay cash."
OR "I'd rather not have any debt."
This is not the way to build your property empire.
Even if you have $100,000 sitting in the bank right now, you could go and buy one real estate investment property but with the system that I am going to show you, you will be able to acquire multiple properties and reap the harvest of exponential capital gains and increasing rents for many years to come!
Gain Leverage by Using Real Estate Investment Finance
Property Investing Success Begins With Your Your Attitude
To Your Success
Your property investing success starts with your attitude to your investments. Look at each piece of real-estate you buy as a long term investment & it will turn into a new stream of income and work for you all the time making you wealthy.
Starting with the real estate financing and property refinancing techniques that I have discovered and will talk to you about and continuing with the real estate selection methods and property criteria that I have used to become financially independent along with all the other techniques I will cover here, you will see that successful real estate investing does not depend on picking the lows and highs of the real estate market but rather it depends on your basic attitude.
People who have become rich by investing in property all have the basic belief that selectively investing in property is the best investment they can make and the best long term use of their money.
You can do this! I don’t care where you are no matter what you do right now you can build a real estate empire. If you will just take the steps outlined here you can be on your way to a life style that others only dream about.
What To Do First - Start Saving
The first step towards your life of luxury is to save. Each week or pay day, just set aside a certain portion of your pay. Soon you will have enough saved for a start on your investment journey.
A much quicker way is to use equity, either the equity in your own home or equity that you may be able to "borrow" from somebody else.
Of course that other person would need to be supportive of your property aspirations and be willing to let you borrow against that equity.
What To Do Next
Buy Your First Property! Buying your first investment property is the most important investment step you will ever take. It is a step towards your financial freedom. Once you have made it your perspective will begin to change, sometimes very quickly.
Using the deposit funds that you have now secured as above, look for a property that is attainable.
In addition to an attainable property tyhere are several other selection criteria you need to keep in mind. Further details on these can be found on the SELECTION CRITERIA PAGE.
Don't Ever Sell
Here is where a lot if would be property moguls, make their biggest mistake. They look for a cheap unit or house to buy and possibly fix up and then they sell it. Or maybe they wait for the right time in the property cycle to buy a nice properly and then they sell it. This is like killing the goose that laid the golden egg!
You may be thinking "How will I retire if I am never going to sell?" Just before I answer that question, let me ask you this: Do you think there is anywhere that you can put your money that will give you the benefits of property ownership? I'm sure you are already familiar with the numerous advantages that investment property holds over any other form of investment.
Capital growth that is consistent through property cycles.
Set and forget – investment real estate is a simple to manage and hold investment. You don't have to check the current price every day for fear of wild fluctuations.
Pyramiding Your Investment
With all of those advantages you will be wondering how you build on your initial investment if you are never going to sell. It's as simple as this, you use the value of that property plus some of the equity from a previous property to fund your next purchase. Then after a while, say a year or so, you do it again.
Don't underestimate the value of what I have just said, or just how powerful this method is. The important thing is to maintain your faith and confidence in the long term value of the property market.
The Power Of Compounding And Pyramiding
This is a powerful driver towards you making money with real estate.
Just as an example, say you bought a property now while prices are stagnant or in decline. Yes, yes I know it sounds counter-intuitive, but buying while prices are low is a really good idea!
Any way, so you bought a property worth say $300,000. A nice little 2 bedroom unit in a new complex near the centre of an up and coming town or city.
So you put up 5% deposit and borrow the rest. That means that you need to come up with cash or equity of $15,000. But then, and this is the exciting part, then you own a property worth $300,000.
If you have bought in an in demand area, you could reasonably expect that the property will experience capital growth of 5% to 8% in the next year. That will mean that by the end of year one your property will be worth between $315,000 and $324,000.
Whet you do NOT do with that increased value is spend it!!
What you do the next year is buy another property.
This is how you make money with real estate!
Let's examine what you would have at the end of the second year if you followed this plan. Your first investment property is now worth approximately $340,000 and the second investment property you have bought for $315,000 is worth $331,000.
START OF YEAR ONE Starting investment or equity: $15,000 First property: $300,000
End of first year Property 1 value: $315,000 Newly Acquired Equity: $15,000
YEAR TWO Purchase second property: $315,000 (Higher price to account for increasing values)
End of second year Property 1 value: $340,000 Less purchase price: - $300,000 Property 1 Newly Equity: $40,000
End of second year Property 2 value: $340,000 Less purchase price: - $315,000 Property 2 Newly Equity: $25,000 -------- Your Total Newly Acquired Equity: $65,000
If you continued with this plan, where every one or two years you bought another property, then by the end of year ten you may have 7 to ten properties.
Your first two or three properties would have approximately doubled in value and the median priced house that you were aiming to buy would be valued about $550,000 to $600,000.
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