With any form of investment, it’s a given that there’s always going to be a degree of financial risk involved. However, one commodity that never really goes out of fashion is property. With the right approach, a property rental business could be your ticket to big earnings. Here are the basics you’ll need to get started.
Raising Capital
Naturally, ensuring that you have the sufficient capital to fund an effective property rental business is your first step. If you’re considering taking out a loan in order to fund your investments, be warned that prospective lenders will generally only consider parties who have an exceptional credit history. If this is you, then you should have no problem locating a mortgage broker or lender who can assist you in securing finance for your new venture on an ongoing basis.
Location is Everything
Select areas where you’d like to start buying rental properties. Of course, you’ll want to buy in areas that are popular places to live. Young families, students and single employed people are the most likely demographics to seek rental property. So look for areas where these groups are prevalent. You can use online demographic tools to pinpoint your target area (though there will likely be a charge for this service).
Great Agent, Great Cover
It’s incredibly important to hire an estate agent who specializes in brokering deals for new real estate investors such as yourself. Though you won’t probably need them further down the line, when starting out, they are invaluable for helping you navigate the real estate world. After you’ve done this, be sure to contact a reputable and reliable insurance company (UK Insurancenet or another well-known firm is a good starting point) to make sure that you have the most suitable cover for your new venture.
Locate Hired Labour
Unless you’re a professional contractor or carpenter, you’ll most likely need a team of professionals to help you revamp properties through a Soft Story Retrofit and other necessary major repairs in order to sell them for a significant profit. As with any investment, shop around for the best possible rates, and the best quality of work.
The Stepping Stones to Real Estate Investment
These are only the basic stepping stones into the world of rental property investment. However, they should give you a good all-round understanding of what will be required if you are to make real estate your new business.
