Anyone who is searching for tips on investing in rental property will probably have realised what a lucrative way of making money this can be. They will probably also know that many of the richest people in the World have either made their money from property or now use property as their preferred investment vehicle to build their wealth.
This article gives 5 top tips that will help you to realise your dreams of making money from property or propel your property business forward at an even quicker rate.
- Buy with your head not with your heart - perhaps the biggest mistake that is made by those new to making money from property is buying with their heart and not their head. It does not matter if it is not the sort of property that you would live in or in the sort of area that you would want to bring up your kids in.
What matters is the bottom line profit. That said, you do need to make sure that the property is reasonable and that it is not in a location where the windows are going to be broken every other week. The most important thing is to make sure it is in a location that is in demand by tenants.
- Have multiple exit strategies - whenever you buy a property you need to already know how you are going to make money. Your exit strategy would normally mean that the property you are buying is in a locating where it is easy to sell those types of properties. You will also want to make sure that you know it is able to rent well and even that your tenants might have the option to buy the property off you in the future if you choose to sell.
- Buy at a discount - you will not get very far by buying property at the retail price. You need to buy it at its wholesale price; at a discount. This is the goal, even if you have a large amount of money to put into the property in the first place.
The more profit you can lock in at the outset the better.
- Know your strategy - you have to know what your goals are and why you are buying the particular property you are buying and why you are buying it in the particular location you are buying it. Everything else follows on from this.
If you don't get your strategy right you are going to be treading water from day one.
- Be in the game for the long term - many budding property investors make the big mistake of selling to soon because of a fear of interest rate rises, or some other impending doom to the property market. The real money in property is made when you are in it for the long run.
Don't bail out to soon. Be prepared to either never sell your properties or at least hold onto them for seven years plus.
There are many more tips for investing in rental property.
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