Are you reading my Journal posts like these and wondering just how you can get into real estate investing if you don’t have a lot of money or experience? And maybe you’ve just been to see your banker about a loan and there wasn’t a happy ending?
You’re not alone! There are a lot of you out there who are wanting to make the move into real estate investing but are finding it difficult to qualify for a loan…
Sure, interest rates are amazingly low, and may well go lower. That’s good news for real estate investors who can qualify. But the better news for you is that you still can get into real estate investing starting from where you are right now!
There are ways you can get passive income right now without qualifying for a purchase loan on a rental property…
One of those ways is to JV with an investor or a property owner, which is a great way to get into a property and take in some passive income. But I realize that some of you just starting out may not feel comfortable or ready for that level of interaction or deal making.
If you are one those people, that’s perfectly fine. There is a very simple way to become a real estate investor and begin to collect passive income right now. It starts with your own PPR.
For instance, many of you have a spare bedroom in your home that just sits there. If you do, you can begin your real estate business in your own home. Rent that spare bedroom out! When you do, you have created value and income in your PPR that you didn’t know you had!
Now, what do you do with the rental income from that spare bedroom? Do you spend it on a holiday or a new car? No! You save that rental income for a down payment on your first rental purchase…
Or you use it to add on to your PPR. You build out a granny flat or add another bedroom and bathroom. Do you see how this works? It’s simple, isn’t it?
I tell this to my students all the time. YOU CAN START YOUR REAL ESTATE INVESTING FROM WHERE YOU ARE TODAY. Your passive income strategy doesn’t have to be complicated…
In fact, in most cases, the simpler the plan, the easier it is to do.
But what if you don’t have a spare bedroom in your PPR?
That shouldn’t be a problem. If you’ve owned your PPR for more than a year, the chances are very good that you have equity you can use to build out either another bedroom with a bathroom or a granny flat in the back to lease out. Again, you’ve created value and passive income in your existing property first.
You haven’t had to qualify for a large purchase loan or go outside your comfort zone into the JV world to begin your real estate investing career…
But knowing human nature as I do, some of you will need a bit of a push and a shove to get you on your way…
So here some recent statistics that tell you why that there is no better time to get into real estate investing in Australia:
Now do you see what this means for those of you who have a spare room? Do you see why adding one on to your PPR makes so much sense? It means that the opportunity for earning terrific passive income has never been greater!
Rents are rising throughout Australia, as are home values. Yes, some places are doing better than others, but as a country, Oz is in the top three least affordable places to buy a house among comparable nations. That means that if you’re a homeowner, you’re doing much better than most.
Look, the most important strategy of any successful investor isn’t chasing what he doesn’t have; it’s leveraging what he does have to move up the ladder.
If you can implement either of both of these PPR passive income strategies today, you’ll be well on your way.
Now that you know what to do, what are you waiting for?