Most people start their property investing journey with a buy-to-let property. As you may know, that’s when you buy a property and rent the house to one family. For many investors buy-to-let is the easiest and cheapest way to get started.
The beauty of buy-to-let investing is that it gives you a passive income. But many investors think the downside of buy-to-let investing is needing a lot of houses for property to make a meaningful difference in your life.
In fact, most investors that I speak to have given up on buy-to-let as a property strategy because they think they need 50 or 60 houses in order to achieve their most exciting property dreams.
No one has the savings to buy 50 or 60 houses when they’re starting out. And they don't want their property journey to take a decade or more.
But here’s the truth: you can build your wealth while bringing in generous cash flow with just a handful of properties. For example, a buy-to-let portfolio of only 5 houses can give you a £35,707 income every year. And, if you play it right, you can increase that income every year simply by raising your rent.
Without an extra penny from your pocket, you can more than double the size of your portfolio in 5 years! That’s why a portfolio of 11 properties can give you a £102,803 income that keeps going up for the rest of your life.
How is that possible?
When you buy the right house in the right area you will have high rental demand... good monthly cash flow... and strong equity growth.
When you buy a house that's within a mile of this ONE thing... then you will attract “Lifer” tenants. Tenants that rent your property for 5 years or more and treat it like their own. That’s what makes your houses virtually manage themselves.
As you know, house prices rise over time. In fact, house prices have risen on average by 7.9% a year for the last 85 years.
Thanks to rising house prices and strong tenant demand. You can refinance the equity growth out of your portfolio and buy more houses without an extra penny from your pocket.
If you buy houses at fire-sale prices, saving £15,000 or £20,000 or even more on each purchase. Then when fear about Covid-19 disappears and house prices bounce back. You will see the value of your portfolio skyrocket.
There’s one critical thing you must do to refinance the equity out of your portfolio and make banks give you a tax-free bundle of cash…
You must raise your rent every year.
You see, the bank will only allow you to refinance if the rent covers the higher mortgage payments.
That’s why you must raise your rent every year. And you can only do that if your houses rent like hotcakes! That’s why you must buy houses in the right area to my golden rules.
The combination of rental income and equity release will give you…