There are many reasons that the average investor does not consider real estate rental properties as a legitimate way to build wealth. But one of the main reasons is ignorance. People simply don’t understand the power of attaining assets through leveraging their cash and creating cash flowing properties as a result. On this episode of the podcast, Kent walks you through some of the main things you need to be aware of if you are at all interested in building a rental portfolio of properties. Don’t miss this one. It could be the start of your wealth-building success.
It’s not uncommon to hear horror stories about the headaches of being a landlord. But that’s because the people who are telling the story are making mistakes that are costing them money, time, and lots of emotional grief. There is a way to build a rental portfolio and have your properties properly managed at the same time – that does NOT drive you crazy. If you listen to this episode you will hear how Kent’s family has been successful at doing this for over 4500 investment properties per year. He knows what he’s talking about so don’t miss this episode.
One of the mistakes that many people make when buying rental property is in believing that they have to choose properties that are geographically near them so that they can keep an eye on them. But the reality is that it is probably not sitting in your backyard. You’re going to have to find the markets where the right kind of properties are available – for the right price – and are drawing the right amount of rental income each month. Kent tells you some of the areas where that is possible currently, on this episode of the podcast. He also explains what you need to look for to assess whether a market is a place where rental properties would be an asset rather than a liability.
Many people make the mistake of thinking that just because a property doesn’t cost very much, it would be a good investment. But nothing could be further than the truth. Cost is not the biggest indicator of value when it comes to real estate investing. Consider this scenario: You find a property that only costs $30,000 and are told that you can rent it for $500 per month. The problem is that the property is in a drug-infested area of downtown Detroit and the type of renters who would live in that property are not the type who will consistently pay their rent. You just invested in a headache and a money pit, not a valuable property. Listen to Kent’s explanation of how to avoid these kinds of mistakes, on this episode.
If you’re not familiar with the concept of compounding interest, you need to get educated on the concept very quickly. Compounding interest is what makes the banks all their money. It is the process by which a loan is front-loaded with interest and over the course of the loan a ton more money is paid for a property than it is worth. But you can turn that process around and use it in your favor by using the income of properties you leverage through debt to pay down your loan quickly. You will own the asset free and clear in much less time and begin experiencing massive cash flow that you wouldn’t experience otherwise. Learn more by listening.
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