25
May

How to build a profitable Investment Property

Monday, May 25, 2020

Have you heard of investing in Investment Properties? This is one of the most wanted investments by real estate investors ever.

Investment properties are a great investment as they can display their income and profits from their on-going business. In real estate these Investment properties tend to come from rental and demonstrate their week by week or month by month rental income along with a full client data base and more, meaning that the new buyers purchase a ready to go cash flowing business and don't need to spend time preparing anything. But if you're interested in building an investment property, it is long way.

How does this work?

Before you can purchase any property there is a lot of work to do beforehand. It all begins with searching for suitable properties and performing intensive due diligence to ensure the property is high standard to attract your clients and situated in a good location to guarantee high rental potential, which is essential for this business. If you have lawyers by your side, which we advise you to, make sure your lawyers do their work to ensure all legal documentation is provided by owners and there is no debt the owners may try to hide from you.

After finding a suitable property, checking all documentation of the property and meeting with the property owner, you may go ahead with the legislation process for buying the property, once both parties are happy to go ahead. Click here to read our recent article where you will learn the whole process involved in purchasing a property in Spain.

Once you have your property, you are ready to enter the phase of transforming the property into a cash flowing business. You can do this by operating it as a short term or long term rental property. This decision is crucial and will determine you return on investment, so choose wisely. To help you choose you can click here to reach our article about investing in rental properties in Spain.

Depending on how much work you're willing to put into this investment, a good thing to do is prepare the full branding of the business, including: a fully registered name, website, social media accounts and client base with regular clients who visit the property. Each Investment Property must also present precise documentation prepared for the buyer to demonstrate all income and profits generated along with additional expenses covered or renovations made to provide a full history.

Investment Properties are one of the most wanted investments by real estate investors. The whole process from buying properties and transforming them into profitable cash flowing businesses takes some time and effort, but at the stage of sale, you will realise it was a worth it investment that payed you back, once you did everything correctly.

We understand that not everyone has the time and energy to build a successful Investment Property, but there are people who have capital available to do it. If you are interested in profitable Investment Properties, join our Live Zoom Q&A every Friday or arrange a private meeting with us, where we can speak with you and answer any additional questions you may have.

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Monday, May 25, 2020