Building a successful remote property investing business can be tricky, especially if you don’t really know where to begin. Luckily, I’ve come up with 3 great tips that will help narrow down the process for you. They
may be basic, but they’re effective.
1. Financing (More Importantly, Where To Get It)
Some would say it goes without saying, but I’m still going to say it. You need to know how much money you actually have available to invest with before you start searching for remote properties. It’s a simple as that. There’s no point researching about where to invest in remote properties before you’ve started with an analysis of your finances.
So where do you start? You can begin by listing out your assets, collating your employment records and anything else you can think of that would be relevant in order to get an idea of where you’re at in terms of assets and liquidity. Once you know where you’re at financially, it’s time to look for the best options on where to get financing.
The first option for most is to get a bank loan. But getting approved can be difficult, especially if you’re purchasing a property from abroad. Mind you, successful investors never pay for all the costs out of their own pocket, nor assume such huge risks in loans all on their own. So getting a home loan isn’t the most practical way of securing financing.
When starting out, a less risky option is joint venturing with someone with enough capital. Expect to do most of the work in transacting the deal if you’re contributing the least monetarily. Also, the partners who invest the most money expect a larger piece of the profits. But that’s okay, since they are the ones who take on the most risk. All you really want at the start is experience and enough of a profit to get you through the next deal. Eventually, you can build your own capital and start contributing more to demand a higher piece of the pie.
Another way is to assume existing loans instead of applying for a new loan. Guys like Robert Kiyosaki and Rick Otton have used such methods to expand their property portfolios, and is something you may want to look into.
2. Location, Location, Location
Where you locate your remote property investing business is essential, because there’s not much point investing your money somewhere that’s not going to benefit your finances. Ultimately, you want to make a profit. Right?
If you’re an avid reader of my blog, you’ll know that I’m a solid believer in the location of a property, so it’s no surprise this made its way into the must-have list.
For your remote property investing business to be successful, you need to pick the right locations. There’s no one rule or guide as to what the “right location” may be, because it will depend on your location, your funds and your goals. So you should definitely shop around, and refer to some of my other blogs [http://mobileb2b.co.uk/best-way-to-know-where-to-invest-remotely/] if you’re not sure when to start.
3. A Capable Team
Seeking professional help never hurts. Rounding up a group or team of capable individuals to help manage your remote investments and keep them churning out the profits is crucial. Remember that investing is a business decision, so don’t let your emotions cloud your better judgement. You want solid, professional property management.
Finding professionals in the location you’ve chosen will be largely beneficial, since they’ll know the ins and outs of the destination, likely far better than you do. Things like trends of the local market and the local’s responses to overseas investors renting, hidden taxes and other financials to consider and any regulations of the destination are all things that you want to make sure are handled correctly. By far the best option is finding a trusted real estate solicitor or agent to help smooth out this process for you, and make you feel comfortable with your investment decisions.
After all, it is your hard-earned money that’s going into this. You want to
make sure it pays off, and brings you the profits you deserve with a minimal
amount of hassle.