Do you want to make money, get rich and retire young? Absolutely! Make money with rental property. Real estate is a profitable business that's easy to learn. Warning, this is not a get-rich-quick crap. This is how to invest in rental property the safe way. This article will teach you how to buy rental property and make money. Make sure to click on the links within each step. They offer great tips and ways of making money and building wealth.
Look for Property Close to Where You Live Buying investment property that's close to where you live is a smart way to invest and a sure way to make money. First of all, you have a better understanding of how the market works where you live. Since you live in there, you know what areas are good and bad. This helps avoid buying bad investment property. Secondly, you won't have to travel far if something happens at the property. The closer you are the faster it will be to solve problems. Time is money, especially when it comes to investment property.
Buy Multifamily Properties To make money in real estate you need to invest in property with 2 or more units. The more units on the property, the less risky the investment and the more money you make. Main reason being is that you pay less per unit and have more "inventory" to sell. Each unit pays you money each month. A house with 2 units makes you more money than single family home. Plus, single unit properties are very risky. If the tenants leave you make no money. If a tenant leaves in a 2 unit building you still have one more unit making you money. Bottom line, if you buy multifamily investment property, you WILL MAKE MONEY!
Find A Healthy Property Invest in property that's in good condition. Don't buy a property that always needs repairs. This erases all the money you make. Inspect the property as you walk through it. If the property passes your initial inspection, hire a professional to do their own inspection. A property that requires minimal repairs is a safe investment and will definitely make money.
Determine The Cash Flow Of the Investment Property Knowing how much money the property cost and how much money it will make is critical. Estimating the cash flow is the most important part of buying investment property. This is very easy to calculate. Click the link below in the Resource box. It will teach you how to calculate cash flow.
Put Money Down Invest a minimum of 20% for a down payment. If you can, put even more money down. This will ensure a safe investment that makes you money. This is important in several ways. First, the smaller your payment the more likely you can afford it when your investment property is vacant.
Secondly, smaller payments mean you pay less interest to the bank and put more money into your pocket. If you can't afford a large down payment, find investors that can. Go into the deal together and you both can benefit.
Set Up Your Financing Get pre-approved for a mortgage. Before looking or visiting investment properties you must be fully prepared to buy. If your financing is not in place, the sellers will reject your offers. Click on the link below in the Resource Box. It will show you how to apply for a mortgage.
Make an Offer And Buy Make an offer 15-30% lower than the price of the investment property. Don't you dare be shy or hesitant about this! NEVER overpay for a property. Your only goal is to get a great deal and make money. This means you must make very low offers. You should strive to make 10-30% on you investment. Example, if you put $10,000 down you should make $1,500 a year minimum! If they accept your offer, buy the house and start making money! Remember, you make your money when you buy the property and not when you sell it.
Get Rich Repeat the steps listed above and try to buy one house every year. Aim to earn $500 a month per house. Doing this for ten years you will earn you $60,000 a year in passive income! Investing in real estate is easy and safe. If your patient and follow the steps above you will retire young and rich. So get motivated and start buying investment property now! Click the links below in the Resource Box. They offer valuable advice on how to invest and become rich.
FYI, after you buy your 1st house the rest is simple. You should easily be able to buy 2-3 houses every year starting your on your 2nd or 3rd year. And as you can imagine, you will be making much more than $60k a year.
Be conservative when you buy investment properties. This guarantees you make money. Click the links in the Resource Box below. They will guide you through the steps to take on becoming rich and retiring young.