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Table Of Contents
Foreword
Chapter 1: The Wealthy Landlord
Chapter 2: Investing In Rental Properties
Chapter 3: Profit From Foreclosures
Chapter 4: Become A Smart Landlord
Chapter 5: Getting The Right Tenants
Chapter 6: Increase Your Property Value
Wrapping Up
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Chapter 2: Investing In Rental Properties
Synopsis
There are many advantages of investing in properties for rental garnering purposes. Not all of these would be just to gain the rentals as there are also other benefits that can be enjoyed through this type of investment.
Putting Your Money In
The following are some of the possible ways to benefits from investing in rental properties:
Rental properties ideally can provide the investor with the opportunity to use it as a leverage based on the assets to procure down payment and loan security from the property returns.
With careful investment the individual will be able to continue to reinvest periodically based on these very lucrative income possibilities.
Of course the more obvious advantage would be in the revenue earned form the actual rental collection itself. This can serve to be a good long term investment for anyone compared to the investments made in other forms such as stocks and bonds which come with higher risks tagged to it.
With income streaming in, the investor should also ensure the tax benefits are explored and enjoyed. For some more savvy investors the manipulation of the rental income can be shown as looses, thus effectively creating the possibility of having even more tax relief help.
Besides this, there are also other elements connected to the exercise of providing assisting services to the tenant that can be used for tax relief deductions. This can be done with a little research or with the engagement of someone providing such professional services.
Being able to invest in this way will also provide the investor with alternative accommodation should a change of environment be the order of the day. Using these investments as holiday homes or retirement homes will also enable the individual to custom design the set up, so that those interested in this type of rental package can easily find it available.
Chapter 3: Profit From Foreclosures
Synopsis
Profit is always a good reason to invest in something and investing in foreclosures is not very different. For those who are savvy investors it is sometimes viewed as an easy way to make big money fast.
Foreclosures
The following are some tips on how to go about getting a good deal through a foreclosure process:
The first step to take would be to do as much research as possible on the property the individual intents to bid for. Finding out everything about the property from the location, to the surrounding areas, to the amenities available and any other positive features that could contribute to reselling the said property for a handsome profit.
Although it may not always be possible to view the actual property thoroughly, some effort should be made to at least have a general idea of the condition the said property is currently in. getting a realtor to do a search on the property is also something that should be done to ensure it is no entangled in some sort of legal binding situation.
Most foreclosure properties can usually be bought at a very good price which is usually lower than the market rate by about 35% – 40% and this is how the profits are made. If the house does not really require any significant remodeling or maintenance then putting the said property back on the market after some superficial touch ups have been done will bring the investor a handsome profit.
The paper work involved is usually minimal as the seller is most interested in getting back the invested amount thus all paperwork involved will be quick and comparatively easy if the buyer has the capital to pick up all the costs incurred.
The only real element that can be considered negative would be the fact that most of the initial transactions have to be done in cash.
Chapter 4: Become A Smart Landlord
Synopsis
Being a smart landlord, does not only mean being able to rent out a piece of property for a sum of money, over an agreed period of time. This is only a small part of being a successful and smart landlord.
Being Smart
The following are some tips on how to be a smart landlord and the areas to take not of:
Buying properties for investment is a good idea most of the time, and buying at a good price is a better way of making profits as the rental will be able to bring in the intended revenue for the investor.
However if the property was bought at a high price and the rental commanded is low then the investment will not be deemed a good one.
Spending a small amount of money to ensure the property is attractive and habitable will ensure the high interest from prospective people looking to lease the said property.
This will also help to legally keep the owner from being held responsible for any substandard conditions that could lead to the investor being sued by the tenant for any mishaps.
Taking the time to screen the prospective tenant thoroughly is something that should be done with diligence. This is to ensure the prospective tenant is both financially sound and capable of paying the rental without problems and also to ensure there are no criminal records evident.
Taking on a tenant without such screenings done, could lead to having to deal with a problematic tenant, where eviction may not always be an easy exercise to enforce.
Taking out an insurance to protect against any losses that might occur will also be part of the makeup of a smart landlord. There are insurance policies that cover various issues that pertain to the rental scenario where coverage is fairly comprehensive and definitely an advantage to have..
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