Investing in a property in order to improve it, lease it out or sell it on is one of the most profitable ways to invest your hard earned cash.
It’s also one of the most difficult endeavors to undertake, which leads us to the purpose of the article.
While yes, it’s possible to make huge sums of cash off property investing, it often takes huge sums of cash to get there. This leads to many people being out of pocket, worse off than before they started.
But property investment shouldn’t, and needn’t, be this way. It should be a lucrative, simple operation, particularly when we need housing space now more than ever. It’s becoming more and more difficult to land a mortgage which means that we need more and more housing opportunities.
And that’s where you come in, aspiring property investor! Or, if you are an investor already, you’re in the right place. Here’s how to make your job a lot more easy!
Work with a business partner
Two heads are better than one, as the saying goes! And in this case, it’s more than applicable. Property investing is a game you can win by going solo, but it’s the team efforts that will pay off the most.
Because, by working with a business partner, you’re offered the ability to juggle many balls at once. One of you can remain in the office and crunch numbers, while one of you can be out scouting for locations.
Plus, this way, there are two names to take control of the assets should one name pass away, or move on. This makes will-writing and inheritance tax much easier to handle. Plus, on the whole… you’ll be able to generate more creative ideas if there are two of you.
Work with a custodian
Purchasing assets – particularly property – is not easy, by any stretch of the imagination. Fortunately, the government made it easier with the introduction of IRA’s. This is a way for people to save for retirement and invest in assets easily.
And, with the help of a self directed IRA custodian, you’re offered the security to make the process even easier. Custodians assist with the purchasing of assets, and keep the relevant securities and assets safely stowed away.
Look for repossessed properties
Repossessed properties are one of the best, if not the best, ways to invest. They allow you to buy an expensive house at a low, low price.
Let’s say, for example, that Steve bought a house for $150,000, financed by a $135,000 mortgage. Steve is unable to keep up his mortgage repayments, so his house is seized back by the lender. The house can now be put back on the market, but at a lower price – the lender only wants back what they put into it, the $135,000.
Suddenly, you can buy a $150,000 house for $135,000, and maybe even less. You’ve made an instant profit by just buying it upfront. Repossessed properties are rare, but keep your eyes open for them!