PORTFOLIOS – OVERVIEW Portfolios stabilize your investment income
We recommend buying as many doors as you can afford. Why? Because the more doors (income sources) you have, the more stable your investment income. To achieve this, think not only about your cash reserves but also equity locked in your home, your IRA and stocks & bonds (that have proved a bit dubious recently).
To get the best results out of property there are a number of things you have to get right. Multiple doors (a portfolio), as we described above. GET STARTED NOW
Leverage! We’re amazed how many people say they “only pay cash for their investment properties”. Long story short, people who don’t leverage (correctly) with borrowed funds will never make the big bucks. Look here how you can double your returns through leverage.
Although everyone focuses on cash on cash returns think about this, cash flow income increases your wealth BUT you lose a large % of it to IRS because it’s ‘realized income’ whereas principal reductions (IRR) on the loan are also increasing your wealth BUT you’re not paying tax* it’s unrealized gains and, of course, by speeding up principal reduction you pay less interest which also makes you more money.
There are only two ways to earn 15-20%+ out of the property, A) buy in a C/D neighborhood and hope vacancies and maintenance don’t kill your investment returns or B) buy brand-new and use bank funds to leverage your way to 15-20% cash ROIs. Of course, we think option B is the best. Go here for our awesome new investment properties
see here how simple leverage can double your investment returns
The right location. There is good reason for the expression you only need to get three things right in real estate and they are location, location, location.
Read more here how we’ve identified some of the best locations to own investment property and some of the locations we like here.