One attribute you need if you are going to embark on property investment is:
Yes you can get rich quick in property if you take extreme risks and catch the market right. However that is luck.
When I started investing in property in 1996 I had no idea we were going to get one of the biggest property booms in history. All I thought is "if I get 10 of these properties the profit will match my salary and I can leave work".
That was my sole goal. Get a portfolio of 10 properties which will provide for me in the future till I die. The only problem was the property bug got hold of me!
I remember I still lived at my mother's house. I only had a computer for about 2 months and I created an excel spreadsheet (this sheet became very big over time!).
I put the monthly rent, monthly mortgage cost and I would calculate the monthly profit I would get for each property and then at the end was the grand total. As I remember it was around £800 profit per month and I had 4 properties.
I did not even think of capital growth. I do not think I even knew the term (I was only a trainee accountant and property was no big thing back then).
In my spreadsheet I added another 3 lines:
Why I did this I think was to make me feel good. So I could say to myself "If I sell up I am worth £x pounds!".
So I did the figures and the figure came out at £14,000. So I told my mum "I am worth £14,000 you know!". She wasn't impressed. And there I was thinking women were impressed by how much you are worth!
As I had that good feeling of being worth £14,000 it took me a couple of hours to realise I could access this £14,000 to buy more properties. You see before I would save up around £5,000 from my salary and then buy one property. This way instead of waiting for me to save I could simply remortgage and buy more.
No saving, no waiting.
I was only restricted to how much cash I could lay my hands on by the valuations I could get and remortgaging. In ten years I got my portfolio to the size of 200 properties.
Fast forward to now. THERE ARE NO RESTRICTIONS. I do not have to lay my hands on any money. I can buy no money down. If I can find the deals I can buy. As long as the banks lend (which they are under obligation to by Gordon and Alaistair) then I can buy as much as I want. My personal goal is to buy 600-800 properties this year alone. Maybe more.
This applies to you too! If you are already an investor with a good credit file then you can buy also - BIG TIME.
So imagine this:
Live a life of luxury where you are time and money rich. Can you see it? Do you believe it? Want to make it happen? Talk to us.
Posted on: 18th Feb 2009