Introduction 1
About This Book 2
Foolish Assumptions 3
Icons Used in This Book 3
Beyond This Book 4
Where to Go from Here 4
Part 1: Building a Successful Real Estate Portfolio 5
Chapter 1: Introducing Real Estate Investment Strategies 7
Taking Your Real Estate Investments to the Next Level 8
Comparing property to other asset classes 8
Going beyond fixer-uppers and straightforward buy-to-rents 10
Focusing on Investment Strategies That You Can Use Internationally 11
Running Your Property Portfolio as a Business 12
Getting Your Financial Ducks in a Row 13
Understanding financing options and valuation 13
Getting the expert help you need 14
Blending Real Estate Strategies to Create a More Robust Portfolio 14
Keeping an open mind about different strategies 15
Incorporating shorter-term strategies into your portfolio 16
Exploring longer-term strategies for earning a regular income 17
Avoiding spreading yourself too thin 20
So Which Strategies Are Right for You? 20
Chapter 2: Investing at Home or Abroad: Which Is Right for You? 23
Deciding Whether to Invest Abroad: It’s Not All about the Numbers 24
Playing on your passion 24
Tapping into available knowledge 25
Considering Your Budget 26
Assessing Your Risk Profile 28
Identifying where you sit on the risk spectrum 28
Considering country-specific risk factors 29
Factoring your goals into the equation 31
Figuring Out How You’ll Manage Your Property 31
Drilling Down to the Right Market for You 33
Looking at the cold, hard facts and figures 33
Developing your knowledge of that country and region 34
Focusing Your Attention on One or Two Key Markets 35
Chapter 3: Treating Your Real Estate Portfolio as a Business 37
Aiming for Passive Income as the Ultimate Goal 38
Defining passive income 38
Looking at examples of passive income 40
Looking at the pros and cons of passive income 40
Drafting a Dream Team 42
Getting expert advice 42
Outsourcing other aspects of your workload 44
Finding and vetting experts, at home and overseas 46
Getting the most out of your dream team 48
Investing in Systems and Technology to Grow Your Business 49
Putting the right processes in place 50
Defining effective business processes 51
Saving time through software 51
Evaluating technology solutions 53
Promoting Your Real Estate Business 53
Managing Your Cash Flow Like a Boss 55
Preparing for the rise and fall of income and expenses 55
Maintaining a safety net with a cash buffer 57
Getting the Right Insurance 57
Insuring your properties correctly 57
Making sure your chosen partners have the right insurance 58
Chapter 4: Protecting Yourself against Market Fluctuations 61
Diversifying Your Portfolio with Multiple Revenue Streams 62
Investing for the long term and the short term 62
Incorporating multiple strategies into your portfolio 63
Seeking out other ways to diversify your portfolio 65
Finding Strategies That Work Well in a Boom Market 65
Working with the booming market 65
Looking at suitable boom strategies 66
Finding Strategies That Work Well in a Credit Crunch 68
Working with the challenging market 68
Looking at suitable crunch strategies 69
Doing the Opposite of What the Mass Market Is Doing 71
Tailoring Your Funding to Economic Fluctuations 72
Understanding the impact on traditional finance 72
Accessing nontraditional forms of finance 74
Considering Foreign Exchange Rate Risks 75
Chapter 5: Getting into the Mind-set of a Successful International Real Estate Investor 77
Continually Improving through Education 78
Tapping into a wide variety of sources 78
Taking time for education before you put your money on the line 80
Networking in the Right Places 80
Networking offline and online 80
Getting the most out of networking meetings and events 81
Maintaining and nurturing your network 82
Setting Your Goals 82
Figuring out what you want 83
Committing to and working toward your goals 83
Cultivating a Positive Mental Attitude 85
Using positive affirmations 85
Embracing gratitude 87
Visualizing for Success 88
Identifying the benefits of visualization 88
Putting visualizing into practice 89
Getting the most out of visualization 90
Harnessing the Law of Attraction 91
Understanding how the law of attraction works 92
Focusing on your thoughts and feelings 93
Putting the law of attraction into practice 94
Meditating to Manage Stress and Risk 95
Looking at the benefits of meditation 96
Making meditation work for you 97
Part 2: Money, Money, Money 99
Chapter 6: Weighing Traditional Finance Options 101
Finance as a Key Element of Success and Growth 102
Seeing the link between leverage and growth 102
Understanding the full range of finance options 103
Considering the Main Financing Factors 104
Looking at the property itself 105
Deciding between fixed-rate and adjustable-rate loans 105
Looking at the length of the loan 107
Finding the right loan-to-value balance 108
Weighing up repayment versus interest-only loans 109
Taking fees into account 110
Assessing a Range of Traditional Finance Products 112
Getting a standard residential investment mortgage 112
Seeking a commercial mortgage 113
Using a bridge loan 113
Taking out a second-charge loan 115
Getting land and development loans 115
Finding the Right Product for You 117
Dipping into International Finance versus Domestic Finance 118
Chapter 7: Understanding Property Valuation 119
Defining Value and Real Estate Valuation 120
Comparing price to value in more detail 120
Understanding the purpose of appraisals 121
Looking at factors that influence value 121
Knowing who values real estate 122
Seeing Why Valuation Is Fundamental to Property Success 123
Understanding enough to maximize your investments 124
Knowing the difference between yield and return on investment 124
Considering how valuation methods may affect your financing 125
Recognizing that appraisers are risk averse 126
Making your own valuation case 127
Looking at the Three Main Valuation Methods 128
Market comparison approach 129
Income or investment approach 130
Cost approach 132
Knowing Which Method Is Best for You and How Much an Investment Is Worth 132
Evaluating on a case-by-case basis 132
Doing your own appraisal research 133
Special Considerations for Valuing Property Abroad 134
Chapter 8: Looking at More Creative Financing Options 135
You Down with OPM? Investing with Other People’s Money 136
Introducing the concept of OPM 136
Looking at OPM as a route to real estate success and wealth 137
Joining Up with a Joint Venture 138
Knowing what’s involved in a joint venture 138
Looking at examples of joint ventures 139
Understanding why people would invest in you 139
Finding the right joint venture partner 140
Creating a compelling business proposal for potential joint venture partners 142
Dotting the I’s and crossing the T’s with a joint venture agreement 145
Securing Private Lending 146
Finding and approaching private lenders 147
Putting it all in writing 148
Crowdfunding Your Way to Real Estate Success 149
Getting Control of a Property Instead of Owning It 149
Applying Creative Financing Strategies Overseas 150
Part 3: One-off and Shorter-term Income Strategies 153
Chapter 9: Developing Properties 155
Knowing What Property Development Means 156
Deciding Which Development Strategy Is Best for You 157
Understanding why you need to think about the end before you start 157
Looking at the main exit options 158
Weighing which option is right for you 158
Keeping your target audience in mind 159
Giving yourself multiple exit options 160
Sourcing Development Opportunities 161
Assessing the property itself 161
Deciding on the right location 162
Finding the best properties (before anyone else) 162
Financing Your Development Projects 165
Understanding how development financing works 165
Knowing whether you need a development loan 166
Looking at other ways to fund your development projects 167
Working out how much it’s going to cost 167
Figuring out what improvements are needed 168
Managing the Development 169
Knowing where you need professional help 169
Creating a detailed budget 171
Creating a realistic schedule 174
Communicating to keep the project on track 175
Preparing the property for sale or rent 175
Five International Locations Where This Strategy Would Work 176
Chapter 10: Dealing in Property Information 179
Dealing in Investment Property Leads: The Five-Minute Lowdown 180
How does it work? 180
How can you progress from an investment property sourcer to a retained buyer’s agent? 181
Is this strategy right for you? 182
Generating and Selling Property Leads 183
Finding your niche 184
Creating value for your clients by facilitating off-market deals 185
Understanding the financial model 186
Sourcing valuable properties 186
Marketing the property to bring buyers and sellers together 190
Acting as a Retained Buyer’s Agent 192
Knowing what it means to be a retained buyer’s agent 192
Understanding the financial model and agreeing terms with buyers 193
Attracting buyers to your service 194
Sourcing properties effectively for your buyers 196
Five International Locations Where This Strategy Would Work 196
Part 4: Ongoing and Passive Income Strategies 199
Chapter 11: Making Rent-to-Rent Work for You 201
Defining Rent-to-Rent: The One-Minute Rundown 202
Addressing Rent-to-Rent’s Image Problem 203
Applying Rent-to-Rent across a Range of Properties and Strategies 205
What types of property are suitable for rent-to-rent? 205
What approaches can you take to sublet the property? 205
Which approach is right for you? 206
Exploring change of use in more detail 208
Margin in the Middle: Understanding the Rent-to-Rent Financial Model 209
Looking at the startup costs 209
Getting started on a shoestring budget 210
Covering ongoing costs and earning an income from the property 211
Sourcing the Ideal Rent-to-Rent Property (and Landlord) 213
Evaluating potential properties 213
Finding a landlord who’s open to rent-to-rent 216
Positioning yourself as a professional rent-to-rent operator 217
Sorting Out Your Rental Agreement 218
Agreeing the length of the lease and other terms with your landlord 218
Having a tenancy agreement in place with each of your tenants 219
Finding Tenants and Managing the Property 220
Finding good tenants 220
Managing the property after your tenants are in place 221
Identifying Five International Markets Where This Strategy Would Work 222
Chapter 12: Leveraging Lease Options 223
Understanding Lease Options and How They Work 224
Breaking down a lease option into its component parts 224
Looking at the pros of lease options 225
Weighing the cons 226
Deciding whether lease options are right for you 227
Understanding the Financial Model for Lease Options 228
Earning rental income from the property 229
Earning capital growth on the property 229
Selling the option instead of buying the property 230
Understanding the “consideration” payment 230
Considering ongoing costs 231
Knowing What’s in It for the Property Owner 232
Sourcing Lease-Option Opportunities 233
Deciding what type of property you want and how you’ll operate it 233
Looking for motivated sellers who would be open to a lease option 234
Getting the owner onboard with a lease option 235
Negotiating the Deal and Contract 236
Your monthly rent 236
The length of the agreement 237
The purchase price 238
The consideration 238
Other safeguards 239
Identifying Five International Locations Where This Strategy Would Work 240
Chapter 13: Delving into Houses in Multiple Occupation 243
Introducing HMOs 244
Breaking Down the HMO Financial Model 245
Sourcing HMO Properties 246
Converting your existing home into an HMO 247
Buying a property to turn into an HMO 248
Deciding Who You Want to Rent To 249
Finding the Best Location for Your HMO 249
Staying on the Right Side of the Law 250
Complying with HMO management regulations 250
Sorting out planning requirements 251
Dealing with mandatory HMO licensing 252
Looking at the key health and safety considerations for HMOs 253
Managing Your HMO 255
Sorting tenancy agreements 256
Finding and vetting tenants 258
Managing your tenants and the property 260
Scaling Up Your HMO Portfolio 262
Identifying Five International Locations Where This Strategy Would Work 263
Chapter 14: Renting to Students and Low-Income-Housing Tenants 265
Knowing What’s Involved in Renting to Students and Low-Income-Housing Tenants 266
Understanding why you may want to rent to multiple tenants in one property 266
Identifying your tenants’ needs 266
Looking at the Pros and Cons of Renting to These Tenant Groups 268
Addressing the negative connotations and downsides 268
Looking at the positives 269
Sourcing the Right Kinds of Property for Students and Low-Income-Housing Tenants 270
Finding the right location for students 270
Identifying the right location for low-income-housing tenants 271
Looking at the property itself 271
Marketing Your Property and Finding Tenants 272
Making sure the rent is competitive 273
Enticing students to your property 273
Attracting low-income-housing tenants 274
Vetting tenants 275
Drafting the Tenancy Agreement 275
Choosing the right agreement 276
Adding in additional clauses for these tenant groups 277
Sorting out the security deposit 277
Physically Preparing Your Property for Use 278
Kitting out the property for your target audience 278
Preparing for plenty of wear and tear on the property 279
Making sure the property is safe for your tenants 280
Managing Your Property Effectively 281
Checking in on the property more regularly 282
Managing tenants’ behavior 282
Looking at Five International Locations Where This Strategy Would Work 283
Chapter 15: Providing Serviced Accommodation 285
Defining Serviced Accommodation 286
What type of accommodation does it cover? 286
What about the “serviced” part? 287
Who stays in serviced accommodation? 289
Looking at the Pros and Cons of Serviced Accommodation 289
Taking a glimpse at the positives 289
Assessing the downsides 292
Deciding What Level of Service to Offer 294
Covering the basics 294
Wowing guests with personal touches 295
Tailoring your offering to your target audience 296
Sourcing Serviced Accommodation Properties 296
Looking at the quality and size of the property 297
Choosing the right location for your guests 297
Preparing Your Property for Serviced Accommodation Use 299
Planning for the practicalities of welcoming guests 299
Getting the decor and overall look of the property right 299
Equipping the property with everything your guests need 300
Navigating Planning and Regulatory Restrictions 301
Getting the Right Business Processes and Systems in Place 302
Managing reservations 303
Optimizing your pricing 304
Marketing your property 304
Managing Your Serviced Accommodation Business on an Ongoing Basis 306
Identifying Five International Locations Where This Strategy Would Work 307
Chapter 16: Providing Vacation Rentals, at Home and Abroad 309
Knowing the Difference Between Vacation Rentals and Serviced Accommodation 310
Choosing the Right Location for You 312
Deciding which country is best 312
Drilling down to the right location 313
Doing your due diligence on the vacation market in your target area 313
Planning for Costs, Cash Flow, and Variations in Occupancy 314
Thinking of cash flow and costs from an annual perspective 315
Understanding seasonality and void periods 316
Overcoming seasonality challenges 317
Sourcing the Ideal Property for Vacation Rentals 318
Preparing Your Property for Use 320
Providing the “wow factor” through service 320
Including all the practical things your guests need 320
Making sure your property is bursting with personality 321
Making the property as season-proof as possible 322
Paying attention to the exterior 322
Making sure the property is safe and complies with local laws 323
Marketing Your Vacation Rental 324
Advertising your property on the right online platforms 324
Having your own website 325
Investing in professional pictures and awesome descriptions 325
Cultivating great reviews 327
Managing Your Vacation Rental 327
Working with a managing agent 327
Pricing dynamically throughout the year 328
Identifying Five International Locations Where This Strategy Would Work 329
Part 5: the Part of Tens 331
Chapter 17: Ten (Or So) Practical Ways to Get into the Mind-Set for Success 333
Tapping Into Education Resources 333
Using Productivity Apps and Tools 334
Learning to Be in the Here and Now 335
Cementing Your Goals Using a Vision Board or Goal List 337
Trying Out a Visualization Exercise, Real Estate Style 338
Incorporating Positive Affirmations into Your Day 339
Recognizing and Giving Thanks for Your Successes 340
Downloading Helpful Apps 341
Chapter 18: Ten (Or So) Other Real Estate Strategies to Consider 343
Delving into Buy-to-Rent (Single-Tenant) Properties 344
Flipping Houses 344
Running a Bed-and-Breakfast, Guesthouse, or Hotel 345
Owning or Running a Care Home 346
Becoming a Real Estate Agent, Rental Agent, or Property Manager 347
Investing in Real Estate Investment Trusts 348
Offering Emergency Housing Accommodation 349
Getting into Commercial Property 350
Trading in Freeholds 351
Index 353
