0:10 – “The Deal That Got Away”
0:38 – Why you Need A Team
1:05 – The Wisdom Of Having 2 Solicitors
2:00 – How To Spot The Good Mortgage Brokers
2:45 – Why You’ll Want A Private Lender
3:10 – The Trick To Make Private Lenders ALWAYS Answer Your Calls
3:53 – Know Your Exit Strategy
4:05 – Getting The Right Estate Agents Aboard
Category: Latest News (Page 1 of 25)
0:10 – “The Deal That Got Away”
0:30 Importance of a stable job and income
1:20 When will the moving truck arrive?
1:40 Seed money
Hi everybody, its Rick Otton speaking, and today’s video is a great one, it’s the four little nugget questions we need to ask when someone’s coming to buy our house.
Zoopla revealed in a new survey that there are now 484,000 property millionaires in the UK. If that’s not an impressive number, consider this: nine out of 10 millionaires have built their fortunes by investing in property.
The real estate market is filled with fantastic opportunities to build wealth and achieve financial security. But like any other industry, it is not immune to market crashes. If you’re not careful, you can just as easily bury yourself in debt. Just ask the people who lost out when the Global Financial Crisis hit.
Keep in mind that investing in property requires strategic planning. You can’t just enter the property market because ‘everone else is doing it’. If you do, you may easily find yourself scraping pennies trying to make ends meet.
The problem with many new investors is that they only think of “why” they want to invest. For the most part, it’s because they want to make more money because more money means more freedom, and more freedom means more time for yourself and for your family.
Unfortunately, they stop there. They forget to ask “how” their investment property can make that extra income for them.
If you are an aspiring investor, fixing and flipping a home may be an income generating strategy that may work for you:
Fix and Flip
Fix and Flip is a quick way to earn a profit with a simple reno. The basic principle behind Fix and Flips is so simple, anyone can do it. Find a house, fix it up, then sell. If you’re interested to invest this way, there are a few things you have to ask and answer before taking on every project:
- What are the areas that need to be fixed?
- What’s the total cost?
- How long is the project going to take?
- And, most importantly, how much is it going to sell for after?
The key to a successful fix and flip is to stay on course with your plan. Follow the timeline. Record everything from the deed of sale, building permits, to tax payments. Run a tight ship on the project, so you finish it on time. This is important, since fix-and-flips are just supposed to last for a few weeks. The sooner you can finish, the sooner you can earn the profit, and move on to a new project.
When you’ve finally reached the time to sell, be reasonable with your asking price. The price of a house is still affected by its location. No matter how pretty it looks, it won’t sell if it’s way more expensive than the average market price in the area. Remember, it’s better to earn profit now than have a house on the market for months and years.
Be sure to tune in to my weekly podcast, the We Buy Houses Radio Show, to hear real-life examples on how my students and I apply this and other seller finance strategies in our transactions.
Rick Otton Takes A Look At What Drives People To Get Into Property Investing
Whenever I ask people why they want to get into property investing, the common answer is to make more money (specifically from passive income). When you dig deeper as to why they want that, you begin to understand that it isn’t really the money that they want but what they think the money can give them.
For most people, having passive income means more time for themselves and their families. In other words, people want to the benefit of having more free time and the resources to be able to enjoy that free time.
The reality, however, doesn’t always match the dream. Buy-to-let mortgages are difficult to secure and dealing with tenants may not always be pleasant. On top of that, the extra income people want may not even come because maintaining buy-to-let properties may be costlier than some might have anticipated.
Going back to the question of why invest in property in the first place, most people will tell you why they want to invest. Very few of them, however, have actually thought how they intend to achieve their goals. Whenever you lack an exit strategy, that’s when all kinds of set backs creep in.
Keep The End in Mind
If your ultimate goal is to boost passive income, you must be able to prepare an action plan to do just that. Before putting money out, always ask yourself if what you’re doing will contribute to your profit.
One of the biggest hindrances to making money from an investment property is expensive financing. If you have a boatload of mortgage bills to pay, how can you expect to make profit? The higher your costs, the harder it is to make money, so be wise when buying property.
This is where seller finance can make a difference. By negotiating for flexible terms with a seller, you as an investor can minimise upfront payment costs, which in turn can help minimise your risk.
In addition, flexible terms allow you to have multiple strategies depending on how the property market moves. So whether you encounter a rising, flat or falling market, you’ll have a strategy in place to allow you to still make money.
Remember, the property market is cyclical. Prices don’t just rise and rise. There are times when the market corrects itself and prices fall. Successful investors always have a plan for any circumstance. They don’t base their strategy on market conditions, which are beyond their control. This is why seller financing is advantageous because its flexibility allows you to adjust and adapt better to changing trends.
Be sure to tune in to my weekly podcast, the We Buy Houses Radio Show, where we discuss real-life examples of how seller finance works in today’s market. Visit WeBuyHousesRadio.com to access all episodes, transcripts and other helpful resources.