How To Make Money Building A Property Portfolio (Real Estate) | Investment Property Tips By Tony Law
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How To Make Money Building A Property Portfolio (Real Estate) | Investment Property Tips By Tony Law

How to make money from property? I’ve given
this a lot of thought, this one, and I reckon there’s actually only about seven different
ways. Let me share those with you today. Hi there. My name is Tony Law from Your First
Four Houses, and my channel’s all about helping you get to investment property number four
as quickly and as painlessly as possible. Let’s kick things off with the really big
obvious one that, I’m going to be honest with you, I really struggled with this when I first
started out, and that is buying at a discount, but I’m talking about buying at a serious
discount, and we refer to this as buying below market value. To be very specific, this is what I mean here.
If you’ve got a property that’s in an estate agent’s window at £105,000, for example,
that would generally sell at around about £100,000 in today’s market. Let’s be honest.
I’m talking, you’d buy that for about £75,000. That’s a serious discount. I didn’t believe
that you could do it, but believe me, there are loads of ways that you can find those
kinds of deals. Next, I need you to find ways of adding real value, real tangible value
to the properties that you’re buying, so I’m not really talking so much about a light refurb.
I’m talking about things like planning gains. Maybe you can split the property up into different
types of units. Could you maybe build in the garden? Now, some of this stuff may sound a bit extreme.
I’ve done them all, I hasten to add, but none of them are that complicated, but they’re
real ways that you can add real tangible value to the deal. Next, look to invest in areas
of capital growth. Location, location, location. We’ve all heard that phrase, but it is so
important when you’re looking to build capital growth. Again, to be very specific here, we’re
looking maybe for regeneration areas. Are they putting in some new transportation to
the area that you’re looking at investing in? Is there maybe an increase in population?
All of these kind of things can help you or give you a better chance of getting some capital
growth in the long term. Look to buy win/win/win type of deals, or
rather, look to offer win/win/win solutions. What do I actually mean by that? Let’s take
an estate agency. I promise you, every estate agency in the land has sellers coming through
their door that want the most amount of money that they can possibly get for their particular
property, sometimes unreasonably so. There are ways that you can actually find deals
that give the seller what they want financially, but actually work brilliantly for you as a
deal as well, and maybe you also, you personally also pay the estate agent their commission,
for example. That’s a good example of a win/win/win type of deal. Maybe you’ve got a property
that’s technically unmortgageable and you can construct a deal where you can do some
remedial work, make it mortgageable again and buy it that way. Maybe you can stagger the payments on a portfolio
purchase, thereby reducing the seller’s capital gains tax liabilities, for example. These
are all good examples of win/win/win type solutions. Next, I need you to find ways of
maximising the rental income on the property that you’re buying. We refer to this also
as sweating your assets. Now, you can do loads of different strategies that give you the
best chance of maximising your rental returns. Let’s take one of my HMOs for example in Poole.
It brings in a net income, after all expenses, and also voids as well the £36,000 a year.
That’s after all expenses. We don’t need many of those to become financially free, I would
suggest. There are other examples of strategies that you could use that maximises the rental
income but you need to find ways of doing that. Next, and this is really important, especially
in today’s climate, you need to find ways of becoming tax efficient. Now, although I
want to give you some guidance and advice here, I’m not going to do that. You need to
seek independent professional financial advice from somebody who is in a position to be able
to give that to you, but please do it. So many people don’t. I’m talking about a specialist
tax advisor, at the very least your accountant. I’m hoping that they are actually experienced
in property. Lastly, please try to find ways of letting return on investment be your guide
when you’re trying to decide which property to buy, so if you’ve got three or four properties
in a row, look at the return on investment. Take the time to calculate it. I did a great little video on it and I’ll
link to that in the box below, which gives you the reasons as to why you should be doing
that, but it’s very important that you use return on investment. I’m sure there are lots
of other ways that you can think of that you could put forwards as ways to make money out
of property, and I’d love it if you could take a moment to share those in the box below.
If you found this really helpful, it would be great if you could take a moment to subscribe
to my YouTube channel. Alternatively, if Facebook’s more your kind of thing, please take a moment
to like my Facebook page. My name is Tony Law from Your First Four Houses. I hope you
found this one helpful, and I look forward to seeing you in the next video. Thank you.


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