Finance Investment Real Estate Correctly And Sleep Easy At Night

Online, May 29, 2014 (Newswire.com) - The correct financing of investment real estate is the cornerstone of wealth creation through real estate. Financing your investment properties correctly brings huge benefits to the investor. Gaining this knowledge before you buy a property will speed your wealth growth allowing you to feel confident in what you are doing, and enjoy life more.

There are many books on creating wealth with real estate, but none tell you how to do it with little or no financial risk, yet there is a simple way to structure the investment loans to overcome all of the financial pitfalls that await the novice.

One of the biggest mistakes many investors make is trying to do it all themselves. To increase not only your chance of success but how much wealth you create depends on the level of skill and knowledge that you apply to the various aspects of buying and holding real estate. By out- sourcing many of the skills needed you dramatically improve your chances of success and invariably will create more wealth.

For any one starting out as an investor in real estate, it is prudent to work with an experienced mortgage broker who knows the real estate investing/finance scene well, because once the financial risk has been removed the chance of being able to keep the property long-term, allowing it to grow in value, is fundamentally guaranteed. Finance it incorrectly and the investor risks being forced to sell the property before it has produced any wealth and in the process almost certainly will lose money.

For the majority of people thinking about starting, their first step should be to gain a fundamental knowledge of precisely what is involved as this knowledge goes well beyond just borrowing the money. Knowledge of the following is paramount if you wish to be successful;

Choosing the right loans to use.
Structuring those loans correctly.
Understanding what role each loan plays.
How to go about getting more funds to buy further properties and where these new funds should go.
Have all rent monies going into the right account to keep full control over this income.
Using a computerised programme to track all details about each property's rent and expenses so that key information concerning your return on investment that each property is producing can be ascertained on a regular basis.

By not starting out correctly with these key aspects will at best slow down your wealth creation and at worst bring your dream retirement undone. They are also vital to keeping clear and complete control over what you are trying to achieve which in it-self is a vital aspect of successfully building a property portfolio. Be wary of using as a mentor a friend who has 1 or 2 investment properties. Should you decide to have a mentor make sure he or she is already extremely wealthy from real estate as many investors who have 1 or 2 properties may well be making key mistakes.

This article was written by a retired mortgage broker who spent 14 years helping hundreds of clients build their wealth through real estate. He now shows people how to finance investment properties through his e-book, "How to Finance Investment Real Estate". His financing strategy also has other benefits too, e.g. control your property loans easily, enabling precise financial control over each property. What his book explains in a very informative and motivational way will enable you grow your wealth for retirement quicker and with more financial security.
FREE confidential chat and find out how you can gain control of your finances. For more information the visit our website http://www.wealthlane.com.au

You will be glad you did, getting controls of your finances is one of the best things you can do for yourself.