If you’ve ever spoken to me, you know that the one thing I always make sure to stress to people is the importance of maintaining multiple streams of revenue. Passive income is something that should never be taken for granted, and as such, it is important to set yourself up with secure forms of income.
With 15 years of experience in successful property investing, I can teach you how to invest in property with ease by finding deals, investments, builders, contractors, agents, and more.
In today’s post, I will take you through the basics of investing in property and hopefully encourage you to start your journey. One of the most secure sources of revenue in my opinion is property investing. As long as there is life on the planet, housing will always be in demand. Therefore, providing rented accommodation is a great way of securing your financial success.
1. Start from a single property
But first, a disclaimer, while the property is a fantastic means of generating income unless you have an enormous amount of funds to spend from the get-go, you will have to allow this business to snowball. Buying property is not cheap and barring the ability to buy large amounts of housing from the beginning, you will benefit far more from buying a single property, than building up from there.
Once you have ‘set the ball rolling’ you can use the income you earn from that first rental property to purchase another, thereby doubling your revenue. And of course, the source only increases from there.
2. Get a landlord certification
That’s not to say being a landlord is easy, you have to put in the work to maintain this income. Getting certifications from organizations such as the National Landlords Association (NRLA) in the UK. They support Landlords by assisting with establishing property businesses and provide training and examples of paperwork that is provided to clients. Getting accreditation by associations like this ensure the system is upheld and you can keep a close eye on your properties.
3. Be prepared for additional costs
Tenants will inevitably encounter issues with the property. All houses have things that break, and as a landlord, it is your duty to maintain them. It’s down to you to find a network of solid housing maintenance engineers, such as builders and plumbers, that you can call out to your properties to fix any problems. While these circumstances do not happen often, it’s guaranteed they will occur, so it’s better to be prepared for them before they strike.
4. Learn about house flipping
You may already have some of these on hand if you are planning on fixing up housing after purchasing it. House flipping is the process of buying a generally run-down property that is in need of repair, fixing it up and applying a fresh coat of paint, then selling it on for more than you purchased and fixed it up for. You will often be doing the same, but you will earn passive income from tenants instead of from a one-time purchase from a single buyer.
5. Pay attention to little things
While the idea of letting a few things slide might be more economically beneficial for you, I cannot recommend cutting corners enough. Sooner or later it will come back to bite you. Ensure all your documentation is up to date, boilers get their required checks and rent gets paid on time. It is up to the landlord to keep an eye on these things, and keeping them up to standard, prevents possible legal backlash later.
Once you have your system up and running, you’ll find you have a very profitable passive source of revenue that mostly runs itself. Your tenants won’t want to contact you unless they have a problem and will tend to pay rent on time. Provided you properly vet your tenants before you accept them, everything should move smoothly. I can count on one hand the number of times I’ve had an issue with an established tenant because I’m so tough with my criteria!
For more information on how to create multiple incomes and start investing in properties check out my eBook. Go to camilita.com/launch and download 3 FREE Chapters NOW.