• 9 Ways On How To Make Money in Real Estate


    The following piece aims to provide the best ways on how to make money in real estate investment. From rental income to buying low and selling high, all the nine options are discussed in a reader friendly manner.

    Property investment is undoubtedly one of the best methods to make money passively and build up massive wealth. Real estate was one of the top-performing asset classes in 2015, giving returns of 13 to 14% for the year, which was incredibly superior to that of other asset classes. For 2016 and the coming years, experts believe that the risk-return profile of real estate will be less obvious. As a result, there will be significant advantages to be achieved through real estate investment.

    Thankfully, in the UK, there are a lot of places where you can network with other property investors to help you get started. There are the Property Investors Network or PIN Meetings that are held regularly. More importantly, these meetings even guest highly successful investors who share proven tricks of the trade like Lisa Oliver, Rick Otton, and the like.

    So really, getting started shouldn’t be as daunting as most people think it is due to the information resources available to anyone.

    If you are interested in investing in property, here are some popular ways on hot to make money in real estate:


    Rental income

    The vast majority of real estate investors earn money through residential property income in form of basic rent. Tenants pay a fixed amount of rent on a monthly basis, which goes up with inflation and demand.


    Buying low

    You can get an instant profit if you achieve to purchase a property for under the current market value. Think of quick sales, foreclosures, and exceptional negotiation skills.


    Commercial Real Estate Income

    Commercial properties can enable you earn massive income through various ways with basic rent being the most common. You can also earn more income in the form of option income. A vast majority of commercial tenants pay fees for contractual options such as the right of the first refusal. Options income is also occasionally used for residential property and law land but they are very uncommon.


    Selling High

    You can earn an attractive profit if you stage your property to attract buyers who are willing to pay more than the market value.


    Increasing Equity

    You can take a mortgage to finance a residential property and end up increasing your equity after each and every mortgage payment.


    Wholesaling properties

    Wholesaling properties is when an investor purchases a property or gets a property under contract. He immediately sell the property to another buyer without repairing anything and in some cases without purchasing the property. A real estate investor can wholesale a property without purchasing it, by acquiring the under contract and assigning it to another buyer.


    Vacation Rentals

    You can buy a property in a great tourist location, make use of an excellent property manager to rent it out on your behalf and collect the rent. The most challenging part of a vacation rental is that it features an extremely cyclical market. You can earn top dollar during the peak season and earn almost nothing during the low season. But this investment option is also worth trying especially if you get a popular tourist attraction location.


    REITS and MICs

    REITs (real estate investment trusts) and MIC (Mortgage Investment Corporations) are basically considered to be great options of earning income from property investment. With REIT, the owner of several commercial properties sells shares to investors to fund the purchase of more commercial properties. They then passes on the property rental income in form of distribution.

    MICs usually invest in private mortgages instead of the underlying properties. They are not so much property investments as they’re debt investments.


    Raw land income

    Companies may pay you regular payments depending on your rights to land ownership for any structures they add or royalties for any discoveries. Such structures include cell towers, access roads, gravel pits, pipelines, and pump jacks. Raw land can also be leased for production such as agricultural production.

    Here’s bottom line; there are countless ways to earn income investing in real estate. Long-term rentals are the most preferred as they continue to bring cash flow month after month throughout the year. Buying low, selling high, REITS, wholesaling properties, and increasing equity can also make you wealthier if you conduct your research well, take your time and purchase right.

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  • Old School And New Wave Strategies To Make Money From Renovations

    Attention! There’s a new strategy that can help you profit from property renovation deals within minutes!


    A few years ago, people were going bananas over renovations as a way to make money from property. Not everyone realised their dream of becoming a property millionaire, except for a few people who took reasonable risks like Michael Holmes, editor-in-chief of Homebuilding & Renovating magazine.

    In an interview with the Telegraph, Holmes revealed that by putting to use these practical tips, he was able to sell renovated properties for up to £500,000.

    1. Unlock a hidden gem

    Most properties that need renovations are diamonds in the rough. You can’t really add value to it unless you pinpoint the problem and find the proper remedy for it. Some common problems include deciding whether it’s better to extend or refurbish; extending the lease; and how to remove restrictions on the land. It’s not easy to come up with a solution for every problem. In case you run out of ideas for a particular property, then it’s about time to walk away from it.

    2. Seek expert help

    Find an architect or a surveyor that can help you materialise the design in your head. Hire planners that the can advise you on what projects could be beneficial for the property. Most importantly, look for a financial adviser that can lead to affordable financing options.

    3. Be cost-effective

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    Always be mindful of your expenses when renovating your property.

    It’s pretty easy to find a low-cost property ready for renovation. The real challenge comes with the task of keeping expenses at a minimum when the time to renovate actually comes. Remember that profiting from renovation doesn’t just come automatically with buying a below market value property. You’ll also have to control your building costs to achieve your goal.

    An Alternative To The Tried And Tested Methods


    Granted, not everyone has the resources to do a fixer-upper. If you have a property that you want to get rid of that needs renovating, but you just don’t have the budget to fix it up and make it saleable, there’s still something you can do to sell for profit.

    Rick Otton, a certified expert in making profitable property deals, has a nice twist on selling houses that need renovation

    “Many renovators are stuck with the old paradigm of doing property renovations. This old process (which usually takes 3 to 4 months) include buying cans of paint in the hardware, undergoing inspections and appraisals, and then applying for bank loans. What a lot of these old timers don’t know is that they can still get make profit from a renovation within minutes,” said Mr. Otton.

    According to Mr. Otton, the faster way of making a profit from renovations is through changing the paperwork financing structure.

    “When you change the paperwork, you are simply making the house easier for the next person to buy it. This simple change in the paperwork will now be that added value that people are going to pay you for and increase the value of the house,” he said.

    One of the ways to do this is by giving your buyers flexibility on the buying process. Instead of asking for all the cash now, perhaps you can give the buyer some breathing room when it comes to the deposit.

    For instance, most buyers have a hard time coming up with the 10%-20% deposit they need for a bank loan right now. But suppose you allowed them to pay the deposit in increments – say in 24 months – then it becomes easier for them to get their bank loan because in the perspective of the bank, they’ve taken care of the deposit. That flexibility in the paperwork alone can compensate for the less-than-stellar condition of your property and allow you to sell at a reasonable price.

    Whether you like to keep it old school or jump into the new wave don’t forget that there’s a strategy out there which can help you earn money from renovations, so try them out now!

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  • The Surprising Benefit Of Rent a Room!


    If you are looking for a no-frills way to make money from property, why don’t you check out the government’s Rent a Room scheme? Don’t waste time, because a big benefit is in store for landlords under this scheme!

    Last October, I wrote an article about how you can let extra rooms in your house to students as a means to make money from property. This time I’ll be expanding on the topic and share with all of you the government’s existing program called the Rent a Room scheme.

    Gov.uk explains that the Rent a Room scheme helps lessors a tax free additional income of £4,250 per year for simply letting out a furnished room in your home or an entire floor.

    Yes, you read that right: the income you earn from renting a room under this scheme will automatically be exempt from tax, provided the amount doesn’t exceed £4,250 annually.

    However, if the income you generate exceeds £4,250 annually, you’ll have to file a tax return where you can indicate if you are claiming tax allowance under the Rent a Room scheme.


    So who can get in this great gig?

    According to Gov.uk, there are 2 qualified groups under the scheme. First are resident landlords- whether or not they own the home they lease. Second are people who are running guest houses or bed breakfasts.
    Owners of homes converted into several flats, on the other hand, are not qualified to receive the tax exemption from the program.

    The scheme also doesn’t provide for a specific kind of tenant to be let into your home. So whether you are letting property to workers, students, singles, or transients, you can still qualify.

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    Under rent-a-room, an annual income of £4,250 is tax-exempt.


    Can you provide other services to your tenant?

    Moneyserviceadvice.org.uk explains that landlords can also offer meals and laundry services to their tenants.

    The money you receive for these services must be added to the rent you receive to work out your total income, though you have to be mindful to keep the amount below the £4,250 threshold to be for the tax exemption.


    How long can the tenant stay in your house?

    A period of lease under the Rent a Room scheme lasts like a regular tenancy agreement.

    You can make the term periodic – which means the lease of the tenant is indefinite and the contract may end at once. You can also make a fixed term lease, so that the contract has a definite start and end.

    Keep in mind that when you and your prospective tenant can’t agree upon the period of the tenancy, it automatically becomes periodic.

    Moneyadviseservice.org.uk shares that getting the tax exemption under the Rent a Room scheme is the highlight. But like other laws there a few setbacks for landlords who are operating under this scheme – such as not being able to deduct any expense.

    Thus if you spend money repairing wear and tear in the room, you won’t be able to subtract any of that expense against your income if you let out your property under the Rent a Room scheme, according to Moneyadviservice.org.uk.

    Personally, I don’t mind being unable to deduct some expenses since the cap for tax exemption is pretty adequate. If you share the same opinion as I, why not go ahead and rent a room in your house today!

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  • Renovation Projects For Under £1000



    Renovations are notoriously expensive to undertake, that’s why I’m sharing a few projects that will add value to your home without depleting the contents of your bank account.

    Many people are crazy over renovations because they add value to properties and they can also be used as a strategy to earn extra income, if you have the energy and patience. Unfortunately, not everyone can renovate all the time since it’s expensive to undertake renovation projects.

    I’m a firm believer that there is an affordable counterpart for every expensive activity. That’s why I searched for affordable ways to renovate a house that won’t drain your bank account – like these 6 upgrades for under £1000, which will add value to your house, not to mention improve its aesthetics:


    Modern kitchen tiles…

    A smart and cost effective way to update the look of you kitchen is through choosing a simple worktop and pairing it up with a bold and printed tile. The contrast of the simple work top against the bold tile creates a visual impact that mimics the stylings of top interior designers.

    A custom built counter top from IKEA can cost you around £900 (including installation), while tiles from Topps Tiles can fetch for £4.76 per sq m.


    Recover old sofas

    You can revive old and tired sofas hidden in the depths of your basement with some funky new fabric or upholstery.

    There’s no need to be intimidated with the idea of refurbishing old furniture, because reviving a typical two-seater sofa would only cost around £320. If you’re not too confident with your upholstery skills, you can hire professionals like Re-Upholstery for £500.


    Add a splash of colour to your staircase

    Most visitors are greeted by the sight of the stairs when they come inside your home, so to create an even better impact to your visitors, why not put a stylish stair runner on your staircase?

    Crucial Trading creates custom stair runners which cost £52 per sq m of fabric. With underlay, grippers and the fitting costs, expect to pay £750 for an entire staircase.


    Upgrade your lawn

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    Artificial grass can significantly upgrade the look of your backyard.

    If you feel that your backyard needs more “oomph” you can try installing an ultra-realistic artificial lawn. Artificial greenery from Lazy Lawn costs £7.82 per sq m or £63 per sq m including fitting.
    As I’ve mentioned earlier, people turn to these projects to add value to properties, but what if you haven’t got the time for a project and need to sell now?

    In cases like this one, you may want to look into seller financing. There are a growing number of investors who specialise in this type of arrangement, but perhaps one of the more famous investors into seller finance is Rick Otton. In his podcast, he shares an alternative to getting the most out of your property if you are unable to renovate:

    Rick Otton says, “most people renovate properties with the hopes that the person who buys it will pay them a couple of thousand more than the original price of the house- that’s the added value that everyone is chasing after.”

    “But it’s a little known fact that you can also add value to a house through changing the paperwork financing structure on it and simply making the house easier for the next person to buy it. I guarantee you that this will increase the value of your house,” he added.

    The premise is simple – construct terms that make buying your property more convenient, and buyers will be willing to pay your asking price. You may check out Rick Otton’s website for more info on creating seller finance deals. Other investors you can look into are Reena Malra and David Lee among others.

    Granted, going the seller finance route means missing out on the fun of doing projects and engaging in a creative process. So if you’ve got the time on your hands, adding value to your home won’t need to drain your savings. If not, at least there are alternative options for you.

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  • Get Rewarded For Reporting Derelict Properties!

    You can get free vouchers from M&S or Amazon from reporting derelict properties to youspotproperty.com and a luck few also have the chance to earn a 1 per cent bonus when the houses they report goes on to become a successful sale!


    I always talk about new ways to make money out of property in this blog, but this week’s topic is extra special because it’s probably one of the easiest strategies I’ve shared so far. This strategy is so stress-free all you’ll ever need is time to walk around London and internet access to accomplish this task!

    In London, reporting derelict properties can earn you £20 vouchers from M&S or Amazon through the website – Youspotproperty.com. The company summarises the process of reporting and earning in 3 phases: spot it, send it, and spend it!
    Whenever you spot a derelict property (which fits the website’s criteria) you can log in to Youspotproperty.com, type in a report containing the description and details of the property, and then they issue a voucher in your name.

    Sounds great right?

    Well it gets better, because tipsters also have the chance to earn 1 per cent of the price paid in case the deal they recommended pushes through. Assuming that the developers paid for £450,000 for a house you reported; then you have the chance to earn a £4,500 bonus from this transaction!

    If you’re interested in cashing in on your tips, you have to find the right properties first. The firm behind Youspotproperty.com only disburses vouchers for tips on residential houses located within the M25 in London and not currently for sale.

    In addition, you’ll also have to double check if the property you spotted isn’t already reported in their books; otherwise they won’t issue the voucher to you.

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    You’ll need to double check if the property you spotted isn’t already reported in their books; otherwise they won’t issue the voucher to you


    The firm claims that so far they’ve been able to purchase 200 houses in London since their launch and they’ve disbursed around 1,700 vouchers with a value of £34,000. They even boasted that a man was able to collect £8,800 last year within a few months of spotting a run-down house in Balham, south-west London, which the firm managed to buy.

    Michael Tsigbe, 24 years old and a regular tipster on youspotproperty.com, claims that he’s been able to report 20 cases to the website so far. However, he reminds everyone that the process of receiving the lucrative bonus fee is pretty drawn out so you don’t expect to hear news about your bonus days after making the report.

    I hope this week’s strategy inspired you to sum up the courage to try new things to make extra money. As a special treat for you guys, I’ll be leaving you a quote from Rick Otton in one of his podcasts, hopefully as an inspiration to take action in order to move forward: “Everybody knows what everybody knows. But they only know what’s called history. They don’t know forward thinking. And so therefore, they’ve got to take acceptance around the undiscovered process. Otherwise you could’ve never have introduced the iPhone. You could never have introduced just about any sort of technology if you didn’t believe in the undiscovered process, because you’d have to listen to what everybody said you can do and what you can’t do.”

    Want to learn new ways on how to make money from property? Then drop by my blog every week to get your weekly dose of tips and strategies to make money from property.

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  • Is The Rent-A-Roof Scheme Right For You?

    For those looking into solar energy, some companies are actually offering to instal solar panels on your roof for free via the Rent-A-Roof scheme. But is this deal right for you?

    Rising energy bills are a growing problem for many homeowners, so much that more and more people are looking into solar energy. Granted, solar panel installation can be quite expensive, which can be a deterrent for anyone interested in renewable energy. Enter the Rent-A-Roof Scheme – where companies actually offer to instal solar panels on your roof ‘for free’. Sound good?

    Granted, anything labeled as ‘free’ isn’t technically free, because basic economics teaches us that it always costs something to produce something. So yes, these companies are able to benefit too from renting out your roof for solar panel installation, otherwise, they wouldn’t be doing what they are doing.
    To find out if rent-a-roof is right for you, here are some facts you need to know about:


    What is “rent-a-roof”

    There are a growing number of companies in the UK which offer free installation of solar panels on your roof- this is the “rent-a-roof” scheme.

    Installation of solar panels in the UK can cost up to £15,000, so joining this service can give you a ton of savings from up-front costs. The savings don’t end there. Maintaining solar panels at home can also help your family save around £150-£200 in electricity bills every month.

    While the offer is tempting, there are a few setbacks with the current system.

    Standard contracts for “rent-a-roof” scheme last for around 25 years and home owners have no option but to stick with the panels for the entire period. This means that even if you sold your house before the period ends, the solar panels will continue on with the next owner/s of the house.

    Here’s another big surprise! It’s the companies who actually get the most benefits from supplying you with free solar panels. The government currently runs a program called “feed-in-tariff” which requires electric companies to pay people who generate power from renewable sources. Thus, the service companies earns when you receive or rent the solar panels from them.

    As a bonus, here are some questions you need to ask your solar panel providers before you sign a contract with them:

    1. Who pays for the maintenance and repairs of the solar kits?

    You’ll have to clarify with the company who pays for the cost of maintenance and repair of these kits. While solar PV panels are known to be low maintenance, this doesn’t mean that keeping one attached to your roof will cost you no money at all. For example, if a component of the solar panel fall from the roof who will be charged with the cost of the replacement part? It’s better to get these details cleared out before you sign a contract, since these costs can be pretty expensive.

    2. Should you notify authorities about the improvement you will introduce into your house?

    Attaching a solar panel on the roof of your house is considered a significant change in your property. As a result, you’ll have to notify your mortgage lender and your property insurance provider in advance – even if some service providers tell homeowners that making these notification requirements aren’t necessary anymore. It’s better to play it safe by asking your potential service provider the legal basis of their advice. You can also ask them if the rule is the same with mortgages for self-employed or 100 percent mortgages.

    Hope these tips helped you out. Watch out for my next post soon!

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  • Lights, Camera, And Earn!

    See how my love for movies and property can give you tips on how to rent out your house as a filming location.

    While I was browsing through the newspaper this weekend, I noticed that nominations for major movie awards have just been released. As a movie fan, this got me excited, so I thought of ways on how I can combine my love for making money through property and movies in one activity. Luckily, I came up with the perfect idea and that is to offer your house as a filming location!



    Get the word out

    Most movie and television production companies find filming locations through a location agent. Hence, the first step to get your house noticed is to register it with a reputable agency. Lavishlocations.com, and shootfactory.co.uk are some of the trusted locations agencies in the UK.

    Once in a while, producers from production companies personally scout for potential filming locations. If a producer sees your house and thinks that it’s the perfect fit for their project, they’ll personally negotiate the details of the shoot and terms of the contract to you directly.


    What does it take for your property to be cast?

    Production crews in the UK are always on the lookout for properties which have large rooms that have plenty of natural light streaming inside. Having ample street parking is also a big signing bonus for location scouts.

    This doesn’t mean that your house should be tidy and perfect to catch the eyes of a producer. There are a thousand different plots used in TV dramas and movies, thus both high end and low end locations have an even chance of being used for a shoot.



    Prepare your house

    If your house is selected as a filming location, be prepared to accommodate a filming crew of around forty people. Preparations include providing rest areas for the cast and crew as well as notifying your neighbours about the activity before the date.

    Sometimes a team of production designers will also make a few changes to your house, so be ready to give them complete control of your home while filming is underway.

    Julian Fellowes, the director of Downton Abbey, once said that some location owners sometimes don’t understand the burden of accommodating an entire production crew into their properties, but despite the slight disturbance, it is quite a treat to see your house on screen for the first time.



    Compensation

    Leasing rates for filming locations range from £500 for photo and music video shoot; this may drastically shoot up to £2,500 per day of filming for TV dramas and £4,000 for big budget films.
    Jonathan King of Shootfactory says that a few of their clients didn’t just earn extra money, but they’ve already made a living out of leasing their houses to production companies, since some shoots lasts from a few days to a few weeks.

    Don’t forget to give me a shout out when your house gets scouted for a location shoot! Just check my archives for more articles on how to build wealth through property!

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  • Rent Out These Household Items For Extra Cash!

    For chronic clutter collectors out there, rejoice! Your junk, err - ‘collection’, can actually be a great source of extra cash by renting them out!

    Renting is usually and almost exclusively associated with property back in the “good old days.”

    Nowadays, it’s not just property you can rent out; even simple items lying around your house can be rented out to other people. Not only will renting household items help you clear out your garage, it will also help you earn a few extra pounds.

    So if you have any of the following items around, don’t waste the opportunity to earn extra cash:

    Tools

    My father loves to do DIY projects around the house. As a result, he has a garage full of expensive power tools that were used only once or twice.

    I was shocked when I first saw his collection of relatively unused power tools, but it seems that other people are experiencing the same thing too. I read a Good Housekeeping article that power tools bought for household use would only be utilised for a combined time of half an hour during its entire lifetime.

    So what can you do to maximise the use of your power tools?

    Rather than let your tools gather dust in your garage, it’s better to let other people use them and make a few extra pounds in the process. In fact, it’s not just the owner who’ll benefit from renting power tools; renters also get extra savings from their budget if they borrow or rent specialised tools for their projects.

    Party Supplies

    Do you live in an old mansion with tons of antique silverware and place settings lying around? Or maybe your family handed you over tons of party supplies that are just filling up your garage?

    If your answer is yes to either or both of these questions, then maybe, you can consider lending your extra place settings, tables, chairs, silverwares, and other items. It’s pretty expensive to buy these items nowadays, and considering that they will only be used on rare occasions; people are just choosing to rent party supplies rather than buy.

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    It’s also pretty common to rent ski and snowboard equipment, but more people are starting to lend their surfing, diving, skating, and even hockey equipment too.

    Renting out sports equipment is very practical, especially when you only get to use these items a few times every year during vacation. While renting out equipment can help you clear out your closet space and give you extra income, you’re also helping out renters along the way.

    Families with kids trying out sports for the time being can benefit from renting because it’ll let their kids learn a sport without having to spend hundreds of pounds on equipment.

    I hope you learned a few tidbits from this article. If you want more info on how to make money from property, be sure to check out my previous posts in this series.

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  • Fill Up Your Pocket With Extra Cash Through Empty Properties!

    Building a property portfolio takes a lot of money. Before you can actually buy a property, sometimes you have to take an extra job here and there to make enough capital for your business goal.

    I’ve shared with you some pretty unique ways on how to earn extra money through property, and today I’ll be adding another strategy into our vault of tips with property preservation.

    If you’ve never encountered the term before, property preservation is a part-time job where you look after vacant properties owned by another person. Some of the tasks performed by caretakers include changing locks, lawn maintenance, regular housekeeping, and protecting the property against the elements. So if you’re living in an area with many empty properties, maybe now’s your chance to hit the jackpot!

    Secure vacant properties

    Securing a vacant property doesn’t mean you have to conduct 24 hour surveillance on the house. Usually, security contractors change the locks according to the request of their client. If the client is a lender or an insurer, expect to change all the locks of the property if the property is turned over to your safekeeping after foreclosure.

    Maintain the lawn

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    An unkempt lawn is probably the biggest indication of an abandoned house.

    Lawn maintenance is part of the responsibilities of a caretaker to prevent the house from becoming a nuisance to the entire neighbourhood. It also helps prevent building code violations.

    Protect empty properties from the cold

    Winterisation is the first line of defence all empty properties need against the cold; without it, water lines may freeze or burst.

    Caretakers usually prevent this catastrophe by pouring anti-freeze on bowls, tanks, sink drains, and traps after a thorough cleaning. Stickers are then attached to these fixtures to indicate the date of the winterisation.

    Utilities in the house are also turned off, except when a sump pump is present. In this case, the electricity will be turned on.

    It’s also part of a caretaker’s duty during winter to clear piles of snow in the property’s lawn. This is important to provide maintenance crews, inspectors, and real estate agents safe access to the property.

    Clear debris away from the house

    All debris inside the house, whether hazardous or not, are routinely removed from the property. Interior debris are disposed of according to the demands of the client, while outdoor debris go straight to a licensed dumping facility.

    When performing all these services, caretakers are obliged to send a photo documentation and report of compliance to their clients.

    You can look for a contract through the help of security providers or you may also ask someone you know directly if you can take care of their property while they are away on vacation or for an employment opportunity abroad.

    Don’t forget to take a peek of my other articles and discover new ways on how you can make money through property.

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