The Old Way vs The New Way of Making Money in Property

Many people get into property by following misguided information about creating "Financial Freedom" or using dated strategies that ultimately means they become "landlords" and end up trading one job for another job. More often than not they find themselves working even longer and harder than they did previously.

This produces an inconsistent income, many mistakes are made and money is lost almost as quickly as money is made. Most find this unsustainable and either quit and sell up or stay at 1 or 2 properties. In fact the average landlord in the UK has 1.93 properties.

Some myths and old ways to make money in property:

Myth 1 - Cash Flow

• Focus first on passive income (cash flow). The way to achieve financial wealth and financial freedom is to buy cash flowing properties. Invest in cash flowing assets (rentals) until your passive income (cash flow) exceeds your expenses.

Problem

• Doesn't provide short term cash. Cash flow needs to be reserved for maintenance, refurbs, improvements, voids and also it needs to be reinvested for future properties.

Myth 2 - Appreciation

• Focus on Capital Appreciation.The way to achieve wealth is to hold on to the property for the long term and ovetime the property value will increase.

Problem

• It can take years / decades to see any real sizeable benefits unless you have bought right at the start and added enough value through a refurb and forced the appreciation.

Myth 3 - Leverage

• Use the power of leverage. Leverage debt to acquire more cash flowing properties and then refinance against the equity and borrow more and increase your debt levels.

Problem

• Debt for some is very stressful. While your tenant is paying rent the mortgage is being paid and the debt is serviced but if the tenant doesnt pay you, or your tenant needs to be evicted, improvements are needed to the property and while it is empty the mortgage still needs to be paid. All the time you are holding a liability. Do you want to have debt? Furthermore, eventually you will hit a credit limit and you will find it difficult to build a portfolio.

Myth 4 - Passive Income

• Owning rental properties is passive income.

Problem

• Rentals are not passive. Even when using a property manager you will need some input and if you are not on top you will have challenges.

Deadly mistakes amateur investors make

• Don't know how to find motivated sellers and generate a consistent flow of leads day in / day out
• Don't know how to properly analyse deals and lose money (don't take into consideration all the expenses, end values or refurb costs)
• Only make offers on high probability deals (not making enough offers or following up on offers as they don't have the time or process)
• Don't have a system for finding, analysing and making offers (No organisation)
• Personally get heavily involved in the renovation, buying the materials by visiting B&Q or manging contractors directly to save money
• Mismanage and hire the wrong contractors
• Eventually run out of money or don't know how to structure deals
• Over renovate and lose money or under renovate so miss out on the best Return on Cash
• Don't know how to negotiate with sellers
• Don't have a proven and sustainable process (Don't treat it as a business).

Understanding the term of "Investing" in property.

The goal of investing is to gradually build wealth over an extended period of time through the buying and holding of a portfolio of properties. Investors enhance their profits by reinvesting any profits into additional properties. Investment properties are held for a period of years or decades to take advantage of appreciation. Investors ride out the storm and dips in the market with the expectation that values will rebound and any losses will eventually be recovered.

What does this actually mean to you? It's a long term strategy that can take years and possibly decades to see great results and by reinvesting profits and by reserving cash for repairs, maintenance, improvements you don't see any short term cash benefits. The path to "financial freedom" is slow and stressful and the very opposite of why you got into real estate in the 1st place. It is still a great way to gain financial freedom and wealth.

The New Way

The New Way of making money is to become a funding partner with a professional business who has developed and created processes and procedures that deliver consistent and predictable results. Where efforts are focussed on strategic activities not tactical activities and a mindset shift of working on the business, not in the business. A business that does multiple deals not just one deal.

With this New Way you can make your money work harder for you and get great returns for a truly passive income. This means you get your time back and create financial security to give you more choices as your money is working harder for you.

We focus on creating a better return on your savings in the shorter / medium term so you can supplement or create an additional income stream. How would you feel when your getting predictable income in your account every month without doing any work?

We have gone through the many struggles and challenges of becoming a landlord and have built a property portfolio which allowed us to go full time in property. We are looking for funding partners to invest the New Way so we can help them get greater returns on their money and in turn help us aggressively expand our portfolio and build a sustainable and highly profitable property business.

So what is the OLD Vs NEW way?

Old

• Grow your portfolio to 1 or 2 properties like the majority or UK landlords
• Have an inconsistent income or lose money
• Work hard and create less time
• Create another job with a mindset of saving money

New

• Become a funding partner and be part of a business that is growing a huge portfolio
• Have consistent and predictable returns
• Enhance your lifestyle for no additional work
• Be part of a business with a mindset of doing multiple deals and making money

Property is a great vehicle for making your money work for you but would you rather make money in the short / medium term without having to deal with all the hassles and mistakes?

So what are your options?

1. Do nothing and continue doing what you're doing and not invest in property and see your savings shrink.
2. Enroll to the "School of hard knocks" and invest in property yourself which may take 10x longer and cost 10x more
3. Become a funding Partner with us - avoid the expensive mistakes, get success quicker, and get a greater return on your money.

Your going to pay one way or another.

If you are interested in hearing about what it means to be a funding partner and how we can help you make your money work for you please get in touch [email protected] and lets set up a discovery call.