If you’ve followed me for any length of time you’ll know that a massive mistake which I see some investors making is just to buy a property, any old property, without really understanding what they want to achieve or how they should achieve it .
There’s a lot more to buy to let than just buying a property and renting it out.
And one thing which I think the casual buyer doesn’t understand is the power and importance of using gearing/leverage when buying properties.
In other words, debt, or in our world, OPM, other people’s money.
There’s a kind of naive view that if you can pay in cash then somehow it’s a sweeter deal.
But imho nothing could be further from the truth.
Although we may feel squeamish about debt, using debt in a considered way, will greatly increase the returns on any property that we buy.
So in this video I want to run through an example, using figures, to show the difference in the return that we will receive from a property, comparing and contrasting buying the same property outright for cash, or with a 75% LTV buy to let mortgage.
If you’ve never studied the figures before, I think you’re going to be amazed and surprised, and will understand why having access to lending, like a standard, vanilla buy to let mortgage, is so powerful for any property investor.
And if you have studied the figures, it’s always good to be reminded and maybe even feel a small glow of satisfaction that this is what we do : ) !
Here’s to Successful Property Investing.
(ex) Chartered Surveyor, author and property investor
PS. By the way, I’ve rewritten and updated my best-selling e-book, The Successful Property Investor’s Strategy Workshop, which is an account of how I put together my multi-property portfolio, starting from scratch and with no money of my own, and how you can do the same.
For more details please go to: