You want to invest in property? That is great but the question then arises what do you wish to buy HMOs, single lets, mixed use premises. Although most people who buy property investments tend to do it incorrectly as they buy with their feelings. They say this looks very pretty, or the garden is amazing or the area is great. Which illustrates that investors do tend to get swayed by their feelings when they view a property. Sometimes you buy in a particular area because your son or daughter are going to attend university in that area. But is that the right approach trying to kill two birds with one stone? Do not buy with feelings as you may still make money as property is generally a lucrative strategy in general however you may be inputting a lot of cash into the investment and not getting as much cash flow from the investment.

 

Therefore instead of buying with feelings you need to buy with formulas! Crazy? You need to understand how to work out the Return on Investment, you need to ascertain how much profit, how much cash would this deal generate. Yes it is true, you should not care too much about the garden or whether the neighbour was lovely because they gave you a cup of tea! In essence most properties you can envisage whether these will be viable investment opportunities prior to viewing the property purely through your analysis and figure crunching. Some investors say investments have to be near their house in case there are any problems they can attend to them with ease. Guess what? That is tying you down and keeping you occupied because that is not the true essence of financial freedom. You may have 100 properties but with that strategy you would most likely have 100 headaches! Because unless you purchase with formulas and systems in place you will not be financially free although you may make money in the long term you may not meet your objective of being financially free.

 

The important formula you need to work out is Return on Investment. Estate Agents, Deal sourcers family and friends will always try to make you purchase property with your feelings however that does not matter the only point that matters is the Return on Investment. Remember always understand how much investment i.e. cash you have put into the deal and how much profit would you be making as a result of that cash investment. It may be that you have put no cash in the deal due to the way you have structured it which means you would be getting an infinite return on investment.

 

If you start to purchase property with that formula in mind you will start to make a lot more cashflow and as a consequence you will become financially free a lot more quicker!

 

I hope that has helped.

 

Best of Luck!