Property Investment Courses and Seminars

How To Build a Property Portfolio

Our strategy when it comes to property investment is to buy property showing potential in key areas, hold onto it for a few months or years, manage the cash-flow during this time and make a decent profit once the time is ripe. If you are looking to build your own property portfolio then this guy knows a thing or two about investing in property. Ben Rodger’s has many years experience in the property market and helps others to become successful iat buying property without a mortgage.

To do this we use something called gearing, which is a fundamental part of our strategy and enables us to look ahead with optimism.

Here’s how it works.

how-to-invest-in-property

how-to-invest-in-property

Imagine your home is worth £400,000 and you have loaned £320,000. In this example your house is geared all the way up to 80%, which simply means dividing £320,000 into £400,000 and multiplying it by 100. What this means is that all you own of your own house is just 20% while your lender owns 80%.

For the lender this is a risk worth taking as they would need to see a plunge of 20% or higher in value in order to lose money from their original “investment”, disguised as a loan. This comfort zone allows many financiers or mortgage brokers to agree to pay up to 80% of the cost price of property and this is why you need to look into the lending rules when you decide to commit to buying property which is something that should be covered in most property courses for any level of investor.

Gearing is what enables you to keep buying property whilst prices increase and you pay off the loan at your leisure.

Let’s take a deeper look at what happens next.

First Year:

  • Bought the house we now live in

  • Concentrated on paying off the loan

  • Try to pay off the non-taxable debt as quickly as possible

Third Year:

  • Bought our first property to use as investment

  • Combined gearing of 80% for both properties

Fourth-Seventh Year

  • Pursued paying off the home loan, again focusing on the non-tax deductible portion

  • Researched the property market with vigour and engaged in courses such as http://benrogersproperty.com/, seminars, reading books and listening to CDs to get to know the tricks and trades

  • Recognized the best legal and financial structures to purchase property

  • Increasing equity on both properties as property values increase and the non-taxable debt is paid off

  • Gearing rate drops to 50%

  • Built a strategy in property investment and highlighted risks and created checklists

Eighth-Tenth Year

  • Purchased a number of investment properties

Present

  • Pursue in our strategy to purchase property based on checklist and portfolio

  • Evaluate performance index according to Cash-Flow Statement and Balance Sheet

  • Sustain gearing at 50%

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