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Build Wealth by Investing in Rental Property

How to build wealth through rental property investment for a comfortable retirement

Date Published Tuesday, September 8, 2015 There ar many long term benefits of Rental Property Investments - Caution is recommended seek advice before investing in rental property Author: Candace F.

Building Your Future One House at a Time

I love those TV shows where a novice buys an investment property, has it totally remodeled so it looks like it just popped out of Good Housekeeping Magazine, puts it on the rental market for top dollar, attracts the perfect tenant, and everyone lives happily ever after. Except, remember, that is a TV show. You never really see what happens when the cameras are turned off. I am listing here a few things you should be aware of prior to making this kind of investment.

How Do I get Started?

Ask anyone who has been a landlord for a number of years and they will tell you that there are a number of things they wish they had known before they invested in rentals.

  • This is a business and you need to treat it as such. You are buying a house and not a home. It is up to your tenants to make it a home. You cannot become emotionally invested in the property or you will take offense every time a tenant does something that is not up to your standards.

  • Start small to see if it is for you. Do you really want those 3:00 AM calls about a water leak? Try it out with one house or a duplex. Give it a few months before you buying more properties.

  • Buy in a neighborhood that you know and that is close to you. How do you fix that leak at 3:00 AM when it is 6 states away? Even if you have a contractor take care of repairs, it is more difficult when it is not in a close proximity to you.

  • Know what to charge. Check local real estate ads or Craig's list to determine the correct rent amount.

  • Are you going to handle it yourself? Can you do the repairs? Can you do the bookkeeping? Do you WANT to do the repairs? Do you WANT to do the bookkeeping?

  • Do you need to hire a property management company?

  • Keep your tenants happy. It costs less to charge a reasonable rent than to have a vacancy.

I Don't Have That Much Money!

So, you have found the investment property that you want to buy. How much is it going to cost you? If you are going to need a loan to purchase the property, you need to know that lenders don't loan 80% on investment properties like they do on a person's home. Probably 75% is tops. This means that the additional 25% has to come from you - along with the closing costs. Closing costs alone can be a pretty good sum.

Then if it needs any repairs, you will need funds for that. Most houses will need a minimum of flooring and paint. Perhaps more.

Don't forget the insurance. Insurance on a rental is higher than on a home that you live in. Then there are newspaper ads, background checks....

Bringing Everything up to Standard.

You will get out of your investment accordingly to what you put in it. If you wouldn't want to live in the house, why do you think someone else would? If you are trying to rent out trash, that is what you will get to live in it.

Screening Your Tenants.

Background checks, credit reports, they are worth 100 times what they cost. Along with this, don't be afraid to say "No". This is a long term contract. Do not enter into it without knowing all of the facts. And speaking of contracts, be sure you have one. Spend the money to have a real estate attorney prepare it for you so all of the bases are covered. Even if the proposed tenant is your favorite Uncle Bill, get the contract. It is for your protection as well as the tenant's. If you are a person who is going to crumble every time someone tells you a sob story, then you definitely need a management company. Don't try be a landlord you would do much better in charity work. Don't misunderstand me, the softhearted people are wonderful people, and the world is a better place because of them, but they will not make any money as a landlord.

Be in it for the Long Haul.

Now, you have purchased your rental property, tricked it out so the most discerning person would beg you to be able to live there, accessed the tenant's background check and credit report, got the contract signed, there's nothing left to do but sit back and start making money! Not quite so fast. If everything is in order, and your rent is set appropriately, you might clear a little money, but that is not where your profit comes from. The real money in rentals comes when you either pay off the mortgage and can claim the rent receipts as your own, or when sell the property that has appreciated while someone else made all of the payments on for you.

I don't mean for this to be discouraging. That is not my goal at all. I think investment in rentals is an extremely smart thing to do; I just want you to have your eyes wide open when you jump in.


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Investment Security Found in Rental Guarantees

What is Rental Guarantee?

There's an investment wave in the field of property investments that has tremendous potential for building wealth and security. Rental guarantee is a type of insurance offered in the UK and several other countries that provides income protection for landlords. A landlord has many expenses and these expenses must be paid even if the landlord isn't receiving rent payments because of the tenants' neglect or inability to pay or if the property is unoccupied. The rent income received is heavily depended upon to assist with paying most, if not all expenses.

What Does Rental Guarantee Offer?

Coverage under a rental guarantee offers assurance that landlords will receive their monthly rent payments whether or not they are receiving rent payments on the property. Some of the benefits provided are as follows:

The Benefits of Real Estate Rental Investments

Owning properties and leasing these properties out provides a steady stream of income for the landlords. In spite of the fact that property and home values can decrease during certain periods of time, rent income can remain the same and if the tenants are satisfied with their surroundings and the rent they're paying, it's more likely they will opt to stay rather than leave their homes. This, along with the fact that rent payments won't usually decrease in the amounts due, offers a reasonable assurance that landlords can depend on a continual positive cash flow.

Other benefits of property investment are as follows:


It's wonderful to own properties that supply income for its owners. However, between maintenance, possible repairs, tenants who are a troublesome bunch or negligent about paying rent, vacancies, and the standard expenses of property insurance and taxes, some landlords can find themselves in financially perilous positions.

Regardless of what type of troubles and expenses landlords may face, the property still has to be maintained and the mortgage still has to be paid. Before rental guarantees, owners and investors dealt directly with the management of their properties and tenants leaving them in potentially risky positions that could devastate them financially if the venture failed. Now, investors and landlords can have peace of mind when they take out rental guarantee insurance because they will be secure in the knowledge that no matter what happens, they will have the income needed to pay their bills. With rental guarantees, the Guarantor leases and manages the investment property for periods of 1 – 15 years, giving landlords ample time to focus on and manage their own finances.

Thus, with the support of rental guarantees, owners and investors have the opportunity to place the responsibility of direct management into the hands of real estate teams that specialize in the management and control of real estate properties while they continue to receive guaranteed income, all for a nominal fee.

The Secrets to Retiring Wealthy through Property Investment

More to come soon ... - How To Build Wealth Through Investing In Property.

Seven Tips on How to Build Long-Term Wealth with Rental Properties -


Candace Foster  (

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