Where's the money in property investment? Franchising provides the answer to negotiating property
How can a high-profit property investing franchise give you immediate positive cash flow, long term wealth and a recession-proof income?
With the increasingly gloomy headlines and reports about the current state and future of the property market, you could be forgiven for thinking there's no money to be made in it at the moment, the only opportunities being for those who have a lot of spare cash and can afford to buy low and wait for their rewards in 15 years. Some high-profile property investor education companies have gone out of business, developers are walking away from significant amounts of investment in land options and a lot of landlords are feeling the pinch.
But while it's true that inexperienced property investors who have been relying on capital growth and equity release might be losing money month on month, those professionals who are taking the right advice, following proven systems and making use of the best legal and financial industry experts are buying as aggressively as ever before, perhaps even more so. They understand that capital growth is inevitable over the medium to long-term, so are concentrating on buying right and ensuring their portfolios are highly cash-positive.
There are seminars, courses and DVDs, but really successful property investing is a long-term prospect and to make sure you're running your property business at the top of its game, you need to continue to deal with experts and make sure your strategies are the best and most appropriate for the constantly-changing market. Taking on a property investing franchise, such as that offered by Platinum Property Partners - the world's first and currently only property investing franchise - might make sense for you. You know you have five years' guaranteed business support and proven investment strategies which are constantly being refined, plus there's the comfort and security of being part of a large group of similar-minded people, all using the same systems and driving each other to excel.
There are really only two options for investing in the UK market at the moment: buying below market value - and that should be at least 20 per cent below the value a surveyor puts on the property - and investing in properties that you can be sure will generate a significant monthly cash profit. Buying 'BMV' is a longer-term strategy and these properties will usually only just cover their costs in the short-term, or be slightly cash-negative, but you have the benefit of knowing you've purchased with built-in equity, although there are particular ways to approach the sourcing, acquisition and financing - it's certainly not a game for amateurs.
Buying highly cash-positive properties will give you an income and a good buffer against fluctuations in interest rates and the mortgage market, and you should be able to achieve at least £10,000 profit per annum, per property if you're doing it right. For capital growth, and to balance your business portfolio in terms of type of profit and risk, you will have to look outside the UK, to emerging markets. At the moment Eastern Europe is where some of the best deals are to be found, and if you can invest into land and development projects where you can be a completely passive investor - i.e. you're not required to give your time to deal with mortgages, properties or management - then that will give you an even better return on investment!
Although investors need to have more capital behind them than they did 12 months ago, the current property market still offers some stunning opportunities for both immediate cashflow and long-term security and, as a franchise proposition, the considerable bonus is that you own the underlying assets. Profitable, sustainable business growth and an appreciating asset base... could property investment provide the perfect franchise opportunity?
Written by Sarah Walker