Rules of Engagement
Rule of engagement for successful buy to let property portfolio building.
1. Only invest in positive cash flowing properties.
As markets are up and down, investing for Capital growth is just speculation not investing.
- Always treat capital growth as an added bonus.
- Remember building successful portfolios is a business.
- No cash no business
- Don't become asset rich and cash poor.
2. Always add value to your purchase.
This can be done in a number of ways. purchasing a property that needs renovating
Adding value, adding extra rooms, extensions or even conversions.
3. Always stress test the rate,
Testing where rates can go before break even point.
Always allowing enough buffer for any spikes in the market
4. Find out what investment strategy works in the area you choose to invest in.
There is not a One Fits all investment strategy for the whole of the UK.
Some areas single let's work best, others multi let's (HMOs).
5. Leverage
This is a key component for gaining momentum in building property portfolios.
You can Leverage banks, other people's money (OPM) other people's time, other People's knowledge and experience.
Time Poverty
Trying to gain an equilibrium of life and work is KEY.
Money and no time, largely contradicts wealth in our opinion, as wealth is not just measured on bank balances, it's more of an overall balance of your well-being health and finances.
It's not measured on how much you earn or how much you have in the bank.
Surrounding
Your surroundings will largely dictate your reality.
Who, where, and what you surround yourself with will massively influence what you become.