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How to Make Full-Time Travel a Reality with Passive Income

All year long most of us are looking forward for the few weeks when we can go on vacation and finally embrace our true passion: travel. If we could prolong this to a few months it would be a dream come true. If you can’t work while travelling another way to be able to do this is through passive income.

The pursuit of passive income has become increasingly popular these days. No wonder, because it gives people the freedom to pursue their passions without relying on their salary for sustenance. So now, you can start a travel blog or create content for another website where you can share your experiences with others and make money at the same time! Writing about you experiences in a travel blog is top of the list on how to generate some passive income while you travel. Another big one is to rent out your home while you are away.

The Wealth of Experiences that can be Achieved on Full-Time Travel

A full-time traveller can visit one of the best places in the world. He can go to an exotic location and enjoy the culture. He can also go to places which are more offbeat and less visited.

The world is a very large place, and it is imperative that you make sure that you take time out for your own self-discovery. This will give you valuable life experiences which you will never forget.

Making Your Travel Dreams a Reality

The steps to make your dream a reality is about goal setting, investing, and the mindset shift.

First you need to set goals that are achievable in the next one, three, five or ten years. The rule is simple, if you don’t have goals, you will not achieve them.

Then you need to invest in yourself by learning new skills or strategies. And lastly you need to change your mindset because there is no such thing as “too late”. You can achieve anything!

Creating Your Own Path in Life while Embracing Every Moment Along the Way

You have to create your own path in life while at the same time embracing every moment along the way.

It’s time to take control of your life and start making choices that will define who you are. You have to be making decisions on a daily basis about what you want for yourself and for others. It’s also important to set goals for yourself so that you can move forward with your life instead of just drifting around aimlessly.

Full-Time Travel with Passive Income as the Ultimate Goal

Making full-time travel a reality is not everyone’s ultimate goal. This might be your goal if you’re an avid world traveller or if you like to explore new cultures and experience different lifestyles. Many people, though, want to do it because it seems so awesome and romantic. They might be retirees who want to spend their days doing what they enjoy the most after working for 40+ years and saving up for their retirement.

Achieving this ultimate goal will take a lot of time, effort, and money. Some people do it by saving up money while they’re still working and then quitting their jobs to travel the world while others work hard until they quit their jobs at 65 or 67 or whatever age that is in your country.

Of course, wasting all your life and energy to only achieve this goal at an advanced age seems a bit sad. That’s why some came up with a way of making this work before – with passive income.

Make Your Maths – How much passive income is needed?

The first thing to do would probably be to get your numbers right. How much money do you need every month to support yourself during your trips (food, accommodation, transport, travel insurance…)? How much money do you need to keep things back home?

The next thing would be to look at how much money you could possibly generate through passive income, such as renting out your home, having a travel blog etc. if the numbers don’t add up you might need some money and more time to build up more ways to generate passive income. On the other hand, you can also explore ways to save money on your travels, such as living in a van.

How Does the Van Life Work and How to Make it Work for You?

“Van life” is a popular lifestyle choice for those who are looking for a simpler life. You can find people living in vans all around the world. They are called “Van Dwellers.”

Van Dwellers choose this lifestyle not because they have no other choice, but because it best suits their needs. Living in a van lets them travel the world, be mobile and do what they want to do without having to answer to anyone else. The idea of living in a van is not only about the freedom and adventure, but also about saving money and enjoying sustainable living with minimal impact on environment.

Every summer, we can see hundreds of vans parked along the beaches where there are public toilets and showers. There is hardly any cheaper way to live.

How to Live in a Van and Travel Full-time on Low Budget

Some van dwellers will spend hours each day on Instagram and Facebook to document their adventures and share tips with others interested in joining the community. Of course, having an internet connection is a must.

If they have enough followers, they can also enjoy the financial benefit that comes with it. But what if you are not good at writing at all? Some choose to make certain investments that will give them passive income.

Investments You Can Make on a Low Budget

When you think of investing, you might think, “wow! That’s a lot of money.” But it doesn’t have to be. In fact, there are many low budget investments that can make a difference in your life.

The key to making the most out of your limited budget is to know what will give you the best return on your investment. You may be able to make a low investment and with your own work turn it into a big one. For example, if you are a handyman, you could look out for a cheap house. By putting in your own work you probably are able to sell it for a lot more later or even rent it out for good money, giving you a regular income to finance your travels.

Real estate Investments are one of the best ways to generate a regular passive income. Some people for example have looked up apartment blocks for sale as it is a lot easier to manage a whole block than to have apartments scattered around the country. Also, there are some management companies that can handle all issues that might come up with the tenants. By getting someone to look after your building you have a lot more time to enjoy your next travel adventures.

6 Other Ways You Can Get Passive Income

No matter if you want to travel the world or just like to have some more time with your loved ones. We all like to have a bit more money in our lives and there is a lot of opportunity these days with the rise of e-commerce and e-business. There are so many ways to make money from your home or van! Here are six ways that have been proven as lucrative by those who have tried them out:

1) Rent your property on Airbnb

2) Sell old clothes

3) Sell online courses

4) Invest in the stock market

5) Create an app or website that people use often and continue to pay for it with ads or subscriptions

6) Become a freelancer

How to Start a Real Estate Investment Firm

Real estate investment is a great way to make a passive income with a lot of potential. But what should you do before starting your own business?

There are a few things that you should know before you start your own real estate investment firm. The first thing that you need to know is what kind of business model do you want to use? Do you want to work with investors as an information broker or as an investor yourself? If this is something that appeals to you, then it is important for you to understand the risks associated with both options.

The Current State of the Real Estate Industry

The real estate industry has been a longstanding and profitable industry that has been around for decades. The market has shifted over the years where more and more people are going to real estate investment firms to buy property because of their low capital requirements as well as the profitability of the trade.

Might sound like an oxymoron but a lot of people want to be a “real-estate agent” these days. They want to be an authority on all things real-estate, but what they don’t know is that there are many other ways for them to invest in the field without being an agent.

How does One Determine if they have Enough Funds or Credit Scores to Start an Investment Firm?

A strong investor with a successful track record is not the only requirement to start an investment firm. They also need to have enough funds or credit scores that are relevant for the type of investment they are starting.

There are many factors that one needs to take into account when considering investing in an investment start-up. One of the most important ones is your credit score and your ability to borrow funds for investment start-ups.

Introduction of Potential Investors in Your Real Estate Business Venture

The first step in getting potential investors is to have a plan. You need to write down all the risks, the benefits, what will the company look like after it’s been funded – basically everything that can go wrong and what could go right.

The next step is to find people who are interested in your project. This typically involves networking or reaching out on social media.

The third step is to create a pitch deck for potential investors who are thoroughly interested. A pitch deck typically includes financial information about your business, information about the team running it, and other important details about your company’s future goals.

Networking Strategies for Successful Real Estate Investors

Finding a network of people with the same interests and goals is one of the most important steps in becoming a successful real estate investor.

Networking is a broad term that means connecting with others to share knowledge, skills, and expertise. There are many different networking strategies for entrepreneurs who want to make connections with others in their field. In order to create successful connections, you need to be remarkably genuine and offer something of value in your interactions.

In addition, there are many ways for entrepreneurs to get started when it comes to networking. For example, you can go out and attend events that will allow you the opportunity to meet new people and potentially find potential connections in your field. You can also use sites like LinkedIn or Facebook groups for this purpose as well.

What are The Different Types of Property You can Invest In?

Owning property is an exciting prospect, but can also be daunting. There are many different types of property you can invest in, and the price ranges vary widely. To make it easier for you to narrow down your options, here are some of the most common.

There are four main kinds of properties that you can invest in: residential, commercial, industrial and agricultural properties. Residential properties are the most common type of property for people to buy because they require less work than other types when it comes to upkeep and they already come equipped with things like plumbing and electricity for your convenience. You may want to look for apartment blocks for sale.

Financing Your Investment Properties

Investing in property is not always the safest way to make money. However, it does offer a lot of investment opportunities and can be a great way to grow your wealth over time.

One of the most popular ways for investors to finance their properties is by taking out a loan from their bank. This option offers the simplicity of being able to get approved for up to 95% LTV on purchase or refinance transactions. The downside, however, is that you are not only securing your own house but also any other investments you have.

There are also many private lenders who offer financing options for real estate investors who have good credit scores and cash reserves set aside for their own down payment. As with any other investment opportunity, there are risks involved with private lending.

What Helps You Succeed as a Real Estate Investor?

It’s important to know that investing in real estate is not always an easy task. There are many ways to lose money and there are also many ways to make it. If you want to be successful as an investor, then the following tips will help you.

1. Do Your Research

Develop a game plan before you purchase your first property so that you’ll know exactly what you should buy and how much it will cost. You’ll also need to decide if you want the property for rental, flipping or long-term hold so that you can find the right place for your investment strategy.

2. Get Creative with Your Finances

It’s important that real estate investors have enough capital because their money is their most valuable asset in this business – they need enough of it to cover all ongoing expenses.

Do you have your Real Estate Investment for sale? List it with us for free.

Home Improvements You’ll Never Regret

When it comes to home improvements, there are some that surely will last a lifetime.

Home Improvements

Sitting in an apartment that was built when I was born, I wish the builders already had thought about some extras instead of going for the minimum standard. But on the other hand, I probably would not appreciate some changes as much. Although it’s impossible to predict the future there are a few enhancements that surely will give more comfort, sustainability and even increase the value of your home. So, no matter if you’re ‘dwelling or selling’, here are some areas that are a safe bet.

Windows

By replacing old windows with high-quality double-glazing windows, you are adding energy efficiency along with security to your home. Needless to say, it makes your house so much more comfortable, they look good and sometimes they are also easier to clean – depending on how your old windows looked like. This is definitely something you will love.

Heating

Did you know that upgrading a home’s boiler and heating system has the highest return of investment when it comes to increasing a property’s value? At the same time, it is even more cost-effective than other renovations and refurbishments.

Best is to combine the fitting of new heating equipment with other improvements, such as replacing old windows, sealing the entrance door and insulating the roof. In doing this, you can see your energy savings begin to show.

Electrical

Extreme temperatures can put an extra burden on your home’s electrical system. If yours is already older it would probably be a good idea to have it inspected and at the same time the electrician can advise you on electrical improvements you can do.

Getting the right lighting in your real estate is not only saving electricity but it also puts your home in the right light. With the right light fixtures you can cater for the right mood and set an ambience everybody loves.

No-Cost Home Energy Upgrades

Some countries help homeowners to make energy saving upgrades. Whether you rent or own, you could be eligible to receive free energy-efficient home improvements or get some financial help. It surely is worth to look this up in your country before you start your home improvements as this can really make a big difference in your budget.

Are you still looking for your own DIY project? Have a look at homes for sale that need renovations on https://www.all-real-estate.com/derelict-properties-for-sale

Or you just finished your hoome improvemets? Let us know how did it go in the coment below. If you are thinking to sell it, you can list it with us for free.

Image: Image by Pexels from Pixabay

5 Ways to Begin Investing In Real Estate with Little or No Money

Lots of folks believe this to enter the world of property; you require plenty of money. But it doesn’t imply that a person with less or no cash can’t begin a real estate company. In This article we have covered the full topic of – how to do real estate business with no money?

The first thing required to initiate a real estate company (or any business, really) is the ideal mindset. You will need to work out creative and innovative ways of getting financing for your real estate deal, especially when you’ve got no funds to spend.

A business is successful once you earn profit by selling your goods or services. This is true for the real estate business, also. The best thing about the property sector is that everyone can start this business with the wish to sell the property and earn high returns.

So, how can you begin a real estate company with zero capital? How can you organize financing to back up your real-estate deal?

If these questions are running through your head, then we have got helpful answers for you.

How to Make Money in Real Estate Without a License

Real estate is an exciting business. I have met a few of the most driven and enthusiastic individuals, lots of whom are currently lifelong buddies. It keeps you on your feet! When most folks consider transitioning to a career in real estate, but the first thing that comes to mind is becoming a certified realtor. With all the licensing and education requirements, however, that may seem quite daunting. Many don’t understand that you may work in real estate without a license in most countries. In actuality, a quick scan of the internet job boards shows the assortment of opportunities.

How to Start a Real Estate Business with No Money

Here Are Five Powerful ways to start a property dealing Company (How to do real estate business with no money) with zero Cash in your pocket, Plans you can learn from and apply in other businesses as well:

1. Buy a House as a Main Home

You can buy a house to live in with a zero money down VA or USDA loan, remain there for at least one year, then move out and turn the house into a rental home. Do not forget that equity building through property investing also contains the houses where you live. Additionally, the down payment and credit rating requirements for a primary residence are always less strict compared to investment property. Living on your insignificant farms first is an excellent way to avoid the more rigorous lender rules for property investment properties.

2. Purchase a Duplex, and Reside in 1 Unit while You Rent Out another One

Did you know that you could fund a two-unit duplex using an FHA loan? You reside in one unit and rent out the other property for additional cash. Along with the reduced down payment requirement, the best thing about this property investing strategy is the lease you derive from the opposite side of this duplex will most likely play a significant part of your mortgage!

3. Create a HELOC (Home Equity Line of Credit) on Your Primary Residence or another Investment Property.

For those who have a large quantity of equity on your primary residence or another property rental property. Many banks will provide you with a HELOC, which you can then use for property investing. A normal HELOC will make a line of money in hand for around 70-80% of the instant equity in your currently owned land.

However, the HELOC can also be utilized as a zero-down mortgage to fund a rental property.

The HELOC interest rate is generally the prime rate and 1 or 2%, which now puts them around 5 percent. But the principal benefit of the HELOC is that it usually does not have any closing costs, and you’ll be able to close quickly with only a Drive-By evaluation on your premises. Some banks won’t charge you for this particular examination.

By way of instance, if the interest is $300, you can simply pay that minimum amount, or pay extra money each month to repay the principal. This permits you to make your mortgage under your terms.

Assuming the prime rate stays stable, the total amount of interest will fall as you pay down the principal monthly.

4. Ask the Seller to Pay your Closing Costs.

On many property transactions, the property seller is willing to cover buyer closing costs to incentivize a sale. However, the trade-off will most likely have to supply the full asking price or close to it. This is reasonable, so long as your lease is enough to cover all your expenses and give you little monthly cash flow. However, at full asking price in the event, the lender quotes you an entire mortgage payment (including insurance and taxes ). Which is equal to or higher than the lease you can reasonably cost, search for another deal.

5. Utilize a Bank that Pays Closing Costs or Supplies a Rebate on your Down Payment.

In combination with Freddie Mac’s Home Possible Advantage program, Quicken Loans has just promoted a 1% down payment option on single-family houses for owner-occupied properties. The buyer puts up 1 percent, and Quicken Loans provides a grant for another 2% needed. A 680 credit rating and a debt-to-income ratio of 45 percent or less will be required.

Sometimes the interest rate is slightly higher to get this deal, but some lenders are currently advertising. They’ll pay closing costs without increasing interest rates. Check with a site such as bankrate.com or do a Google search for a listing of those companies.

Whichever of these methods you opt to use, the most crucial point to bear in mind is that investing in real estate with very little money is a superb way to build wealth. It is among the very few investment approaches where you can begin without large quantities of cash. One never knows when particular property programs will come and go. So make sure to benefit from these ideas while they’re still around.

Is real estate an excellent way to earn money in 2020?

Real estate is best regarded as a long-term investment – it pays off best when held through the years. You can purchase property in 2020, but you would want to hold onto it for 20–30 years for the best results. Suppose you can find sellers that will sell their property for you at a substantial discount below market value. In that case, you can create a whole lot of cash in a couple of weeks through wholesaling or flipping. But finding people who will sell the property to you for 10–20 percent or more below market value is a whole lot tougher than finding quality properties that will appreciate and supply decent cash flow over the longer term.

How to Start Investing in Real Estate with Little Money

For many people, the term “investing” conjures up images of men in suits, tracking the exchange of tens of thousands of dollars on a stock ticker.

I am here to tell you: You do not have to be the Wolf of Wall Street to begin investing. It’s okay if you are more of a mouse of Main Street. Even if you just have a few bucks to spare, your money will grow with compound interest.

The key to building wealth is developing good habits–such as regularly putting money away each month. Replace the barista-made cappuccinos for coffee in your home, and you may already be saving more than $50 per month.

As soon as you have a little cash to play, you may begin to invest.

It’s just as straightforward. Having a robo-advisor or savings account, you can make your money work as you play. With a stock trading program, you can play a little money and learn valuable investing lessons simultaneously. Exactly like Halloween costumes, investing comes in several diverse forms. It should not be a scary word.

With so many diverse choices, investing for novices is more straightforward and more uncomplicated than ever before.

Conclusion

Property coping is a very profitable business. Use the ways mentioned above to enter this line of business even when you don’t have cash. But, do not forget that entry is simply the first step on the ladder of success. How your company grows and succeeds is mainly based on your hard work and your ability to recognize opportunities and take action accordingly.

Ready to begin taking advantage of the current opportunities in the housing market?

Whether you are new to investing or have closed a few bargains. Our new online property course will cover everything you will need to know to help you start real estate investing. Professional investor than Merrill explains the very best property plans to help get you on the path towards a better financial future.

About the author: My name is King kentus i blog at komback.com and i am the CEO of the said website.

How and Where to Invest in Real Estate: The 4 Best Ways to Profit

It’s not a secret that real estate can yield bigger profits than most businesses, but did you know that you can earn in this market even if you don’t sell a house?

If you have ever experienced having a landlord, there’s a good chance that you have observed how challenging it is for them to field calls from tenants all day about overflowing toilets or giant bugs. But while it may not seem like the most glamorous job, being a real estate investor can be quite lucrative.

Aside from renting out a place, there are plenty of ways that you can get a significant return on investment in real estate. The only problem is that not all investors understand how they can do so, or even know which investments can get them a significant ROI.

If you’re new to the trade, this article is for you. Read on to learn the four best ways to profit by investing in real estate.

1. Buy a rental property

This is probably the most straightforward method of becoming a real estate investor. ‘Investment property’ refers to any commercial or residential property to be rented out to tenants without any additional fixing or flipping.

When you own a rental property, you don’t just get what you paid for, but you also build wealth-generating income. Add to that equity appreciation and the leverage you have with real estate, and you have yourself a solid investment.

Still, it is worth noting that owning a piece of rental property may not be for everyone. When looking for houses or apartments for sale, you have to make sure that you consider your interests, lifestyle, and the potential drawbacks, including:

● Time commitment

Owning a property and renting it out to tenants requires time, even with the help of a property management agency. Make sure that you can accommodate this in your schedule. Otherwise, it would be best to try something else.

● Cost barriers

Another major concern most investors have about a rental property is the cost of buying one. If you’re taking out a loan for it, many lenders require a minimum of 25 percent down payment for an investment property loan. Thus, it would be better to consider undertaking this type of real estate venture if you have reserves worth several months’ expenses.

● Uncertainty of yield

Although many rental properties provide a continuous source of income for many (especially if you pick an apartment in a highly desirable location, like a Business Bay property in Dubai, for example), it isn’t a 100% done deal. Vacancies can happen, and things may break. Although there is great potential in this sort of investment overall, there are considerable short-term risks.

2. Invest in real estate investment trusts (REITs)

Real estate investment trusts or REITs allow investors to put in their money and let it grow without actual, physical real estate.

Although usually compared to mutual funds, REITs are actual commercial real estate properties like retail spaces, office buildings, apartments, and hotels that yield income through leasing. The revenue gathered through these properties is divided amongst the REIT holders – also called ‘trustees’ – in the form of a dividend, which they can automatically reinvest to allow it to grow further.

But while REITs are an excellent way to invest in real estate for people without the time to handle rental properties, they can also be complex and varied. Some of these are traded on an exchange the same way stocks are, but others aren’t publicly traded. This means that the kind of REIT you invest in is a huge factor in how big a risk you’re taking when engaging in this form of real estate investment.

3. Purchase a vacation rental

Vacation rentals are quite different from the rental property mentioned previously. While the latter involves having long-term tenants, vacation rentals are only occupied by tenants on occasion.

One of the perks of having this type of investment property is that you can use it as your second home when it is vacant. It would also be easier to finance vacation rentals compared to long-term rental properties, particularly if your lender considers it your second home as it means you don’t need to use the rental income to qualify for the loan.

Moreover, these properties usually bring in higher rental income per day compared to long-term rentals.

But, like other investment options, vacation rentals also have some disadvantages.

For one, marketing and managing this type of rental property requires more involvement on your part compared to those leased out long term. Because of this, the cost of property management is a bit higher, with many property managers expecting to get paid 25% of the total rent. This is more than twice the 10% standard for long-term rentals.

4. Fix and flip real estate

If you’re a fan of real estate TV shows, then you’re probably familiar with the term ‘fix and flip’ or the act of ‘flipping houses’. Fixing and flipping a property means that you buy a home for the sole purpose of refurbishing it and selling it quickly for a profit.

This particular investment option can be quite a lucrative option in real estate, especially if everything proceeds as planned. After all, what better way to earn some cash than by buying an underpriced home, showing it little love through inexpensive renovation, and reselling it for a higher price?

However, this strategy is a little bit harder to accomplish in reality compared to how they present it on TV. First, it comes with a higher risk as the maths behind flipping properties means you have to be very accurate in your estimated cost of repairs. That alone is a challenge in itself.

Plus, flipping homes is a job that requires not only your attention but a lot of time as well. This means that if you’re a passive investor, you should consider another investment option.

Remember that fix-and-flip investments can be quite daunting, even for the most experienced professionals. In fact, even the people you see doing this on TV require a team of four people or more, with varying expertise in real estate marketing, civil engineering, interior design, and others.

There are also some rules you must know about before deciding to jump into the fix-and-flip bandwagon:

You make money when you buy, not when you sell. Stick to the 70 percent rule; the acquisition, repair, and holding costs shouldn’t exceed 70 percent of the amount you expect to sell it for.
Time is equivalent to money in this trade. Dragging your feet during repairs and selling can destroy your profit margins.

Invest wisely in property

Property investment has a high potential of helping you build your wealth. When done right, you can even make it your main source of income.

Still, it would be best not to put all your eggs in one basket. Invest wisely by choosing the right kind of real estate investment among those listed in this article.

Author: Damac Properties

5 Smart Tips to Renovate Your House and Make it More Expensive

If you are trying to sell a house and make the most of it, you better make sure to turn your property into a super-attractive home. Let us be straight about it and tell you that it’s not an easy job – at least not in most cases – but it definitely pays off to renovate your house and make it more expensive.

You’ve probably brainstormed hundreds of possibilities, but do you know the most productive house repair tricks? If you don’t know where to start, check out five smart tips to enhance your real estate and sell it for the maximum price possible.

1. Take Care of Street Appeal

Humans are visual beings who judge other people and things almost instantly. According to reports, it takes a person only seven seconds to form the first impression. In other words, your house may have only a few seconds to impress potential buyers.

How can you help prospects fall in love with your property? The answer lies in street appeal. You can improve it using many different tricks, with the most popular being:

Mowing the lawn to make clear yard lines
Cutting the trees to make them look neat and clean
Replacing lanterns and other outdoor lights
Repainting the front fence

2. Free Up Some Room

Do you know what really impresses house buyers? It is a place with enough room to add personal stuff and make it feel like home. This is exactly why we recommend freeing up some space before the next prospect pays you a visit.

You can do it by removing personal things from the living room, kitchen, and bedrooms. Take out your family photos, souvenirs, and all other items that might interfere with the visitor’s experience. The bottom line is that you need to depersonalize the property and let your guests imagine what they would do with it.

Keep in mind that this trick applies to all properties, from small downtown houses to 30a home real estate.

3. Consider Kitchen Upgrades

A kitchen is almost always the central point of every house. Everything revolves around this room, so you might as well consider completing a few kitchen upgrades.

A tip that proved to be useful is to introduce natural light to the kitchen. If you have nothing but a small window, think about replacing it with a much larger window. Of course, there are lots of minor solutions to think about here such as refurbishing the floor or replacing worktops.

Any idea that can make a new chef more comfortable is welcome.

4. Beware of Details

You probably know that the devil is in the details, a proverb that perfectly suits the real estate business. If you want to get the highest price for your house, you need to pay attention to the smallest features that are easy to repair but make a huge impact on buyers’ decisions. This is what we are talking about:

Wall cracks that make your house look old
Dust and dirt in lower corners and spider web in the upper corners
Broken flooring elements
Faucet leakages
Malfunctioning door handles
Any other broken or dysfunctional elements

5. Think about Energy Efficiency

House owners who make their property energy-efficient can impress potential buyers and convince them to complete the purchase. Details such as wall insulations and double-glazing windows can look great in the eyes of a typical client for two distinct reasons – financial and environmental. Of course, it will also make the price of your home skyrocket.

Up to You

House renovation goes a long way, especially if you need to repair a lot of interior elements. However, you can speed up the process if you focus on the essential improvements only. In this post, we showed you five smart tips to renovate your house and make it more expensive. Can you renovate your place like this?

AUTHOR BIO

Leon Collier is a content creator at several thesis writing services in Edinburgh. Apart from working at the essay writing service UK, Leon is a blogger who specializes in business, real estate, and finance. When not writing, you can find him behind a book or playing tabletop games with his friends. Follow him on Twitter @LeonCollier12 Follow him on Twitter @LeonCollier12

Image:

Photo by Roelf Bruinsma on Unsplash

First 3 steps to become a real estate investor

It all sounds easy; A monthly cash flow generated by renting out real estate. You can quit your job and live the life you always wanted. But not so quick. What sounds simple in theory is not as simple in reality. It all needs careful preparation and investigation. Careful planning is crucial. In this article, you will read 3 practical first steps for who wants to become a real estate investor.

A property offers many advantages, but the purchase of the rental property needs to be considered carefully. After all, you will be making a decision with a large financial impact – the right strategy is vital. If you consider the following steps, there is nothing standing in the way of your first property investment.

Step 1: save money

The more money you can save, the easier the later financing of the property will be. You should therefore start saving as early as possible and also improve your creditworthiness.

While you save capital on the purchase of your first property, you can of course invest the money you have accumulated. However, make sure that your assets will be available in time for purchase. Long-term investments are therefore less suitable.

Step 2: plan financing

Before you actually start looking for a property, you need to be clear about the size of the investment you want or can invest in. Will you start small with a one- or two-room apartment or do you start directly with an apartment building?

When talking to a bank advisor, you will know the loan amount you can get. Together with the money you have saved this results in the upper limit for your investment, which enables you to narrow down your property search.

When calculating, take into consideration additional costs: real estate transfer tax, notary and estate agent fees.

Step 3: object selection

Knowing your upper limit, you will now be able to decide in what type of real estate you like to invest in. You can now study a few scenarios to figure out

what type of real estate (house or apartments…)
in which location
long or short-term rentals

you should invest in to bring you the most profit.

Your time as a real estate investor

Don’t forget to take into consideration your own time that you need to spend regularly to look after your real estate investments.

Although short-term holiday rentals can be a lot more profitable, they will also need more of your attention and time.

Correctly estimate your time

It is not so easy to correct mistakes when buying a property – so make sure to take your time before you decide to buy a certain property.

And even after buying, be aware that you still need to invest time: be it to make accounts, organising repairs and renovations, dealing with your tenants… There will be always something that will need your attention.

A competitive market for a real estate investor

Generally, the real estate market has been on the upswing for several years. If you want to be a real estate investor today, you are therefore dealing with a competitive market.

A big advantage of real estate is the opportunity to generate a cash flow month after month. With rented houses and apartments, you can still make a profit after covering all costs and already collect capital for the purchase of the next real estate.

You have not much money available for your investment? Why not start small. Have a look at www.propertyunder20k.com to find cheap real estate for sale.

How to lose weight fast with real estate

This is not a joke. I actually lost 9 kg in 6 month working on my first real estate project. Here is how you can lose weight with real estate.

It´s a few years ago now, but still a really nice time to remember – my first real estate project. First, I was actually not to keen on it. It was a massively big 3-storey house in an overgrown garden. The property needed renovation works throughout. A real bargain of course, so we had to have it.

With 64 kg I was not really fat, just a bit roundish maybe.

To be honest I was not really aiming to lose weight.

Somehow it just happened during this renovation project.

Basically, we just parked our caravan beside the house and started working. We managed to get broadband connected to the caravan, so I could still have my “home office” to support ourselves financially.

Getting the hands dirty was the best

There was so much to do in this real estate project more than we could ever do. But we were so excited and full of motivation that we worked like crazy. I remember, I was really keen to make myself a nice office in the house. There was this nice cosy room in the second floor with a great view over the valley. It had to be that one. At the same time, I wanted to tidy up the garden. I believe it was this combination that triggered my great weight loss.

Every day I would run up and down the stairs

I was working in my little office like from a tower and for every little thing I had to run downstairs. Getting a snack, going to the bathroom, getting a tea, answering the door, removing some weeds in the garden… I almost didn´t noticed it. It´s quite incredible how much energy you can get with the right motivation.

After doing this for 6 month I was down to 55 kg and really happy about it. This was a really welcome side effect of our real estate project.

Of course, the project was far from being finished after those 6 months but we were able to sell it with a €10,000 profit. It´s not a lot for a 6-month work but for a first project it was perfect. We had a great time and made a lot of experiences that helped us for later ventures.

Besides to do this as a real estate business, I can really recommend this for losing weight as well.

Find your own real estate project to lose weight on www.all-real-estate.com

Will you be at Portugal’s largest real estate show?

In October this year it will be time again for all real estate lovers to flock to Lisbon. Portugal’s largest property fair will held its 22nd edition from October 10th to 13th.

In this four-day event you can discover large commercial developments, learn about latest trends from leading real estate experts and find potential partners for your real estate business among the exhibitors.

SIL, short for “Salão Imobiliário de Portugal”, is a meeting place for real estate investors, entrepreneurs, technicians, public institutions as well as potential buyers.

You can get a ticket for 8 EUR or if you buy 4 tickets in a bundle it costs only 20 EUR.

There will also be a Competition – the annual SIL Real Estate Awards

SIL promotes Real Estate Excellence, so this can be a good opportunity to get some attention at the Largest Real Estate Show.

The categories are:

Sustainable Construction and Energy Efficiency

The Best Real Estate Project for

a) Commerce, Services and Logistics
b) Housing
c) Tourism.

Urban Rehabilitation

a) Housing
b) Tourism
c) Public Spaces
d) Offices
e) Commercial and Services.

You can see all information and how to enter the competition on https://imobiliario.fil.pt/

If you think, “yeah, that´s all very nice but will be too boring for my kids”, think again! The makers of the fair even thought about that. There will be a Kid’s Club, where parents can drop of their kids. They organise various play and educational activities for children aged between 3-12 years old. Knowing that the kids are having great fun and being looked after, the parents can stroll the real estate show with peace of mind.

You can find more about the Kid´s club on https://www.essential-business.pt/2019/06/04/sil-launches-sil-village-and-sil-kids-club/

Where is the real estate show?

FIL – Feira Internacional de Lisboa
Rua do Bojador, 1998-010 Lisbon, Portugal

Would be great to meet you there!

Real Estate Investment and the Rate of Return

Once upon a time there was a gingerbread house. It was lovely decorated with lots and lots of candy…

How often we have heard it. “If something looks too good to be true, it probably is”. Unfortunately, a real estate investment is no fairy tale with a happy ever after. Especially when it comes to profit, we must be careful with promises of an unrealistic high rate of return.

But to know if something looks too good to be true, we first need to know what is a realistic rate of return for a real estate investment? And how is it calculated?

The rate of return shows how much profit in percent is made per year in relation to the money spend. Like this it is possible to compare one real estate investment to another or even compare it to other types of investments.

When a percentage value is mentioned as a return on real estate, a serious investor should first ask what return is meant. A distinction is made between gross and net return (or some also call it “cap rate” meaning Capitalization rate).

The gross return covers purchase costs and additional purchase costs, but not ongoing expenses such as administration and maintenance costs or taxes.

It is calculated like this
annual income divided by purchase price x 100 = gross return in %

The net Return includes the current expenses except taxes, so the net return is always lower than the gross return.

It is calculated like this
annual income minus all expenses divided by purchase price x 100 = Net return in %

These are just the very basic types of return – of course there are others, more complex (price return, money-weighted return, time-weighted return…).

Let´s see an example.

You bought a house for 150,000 EUR and you rent it out for 700 EUR a month. Your expenses for the house are 2,000 EUR per year.

This means that your gross return is 5,6 %.
(700 EUR x 12 month) / 150,000 EUR x 100 = 5,6 %

Your net return on the other hand is only 4,26 %.
[(700 EUR x 12 month) – 2,000 EUR] / 150,000 EUR x 100 = 4,26 %

As a result, to get a good idea of your profit it is always better to look at the net return.

What is an average rate of return?

Depending on your country and the type of real estate (residential or commercial) your average rate of return would probably be something between 4% and 10%. Of course, the bigger the rate the better. But again, if the rate of return is very high in a real estate investment you must be cautious. Also look out for the wording “possible” or “potential” yield of …. Meaning you will need to do something to achieve that – maybe even investing more money.

So, if the rate of return in a real estate investment looks too good to be true maybe take a closer look at the tenant of this nice “gingerbread house” or bite marks on the walls….