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Steps to generating passive income 

What do you seek?  
Before you begin looking at properties, it is important to decide your goals and what you seek as an investor. What kind of passive income do you seek? Do you want to become a landlord of a multi-family property and rent each unit out to tenants? Or perhaps, you seek a corporate venue that can be rented out to multiple businesses.  
 
This decision depends on your budget and the kind of wealth you seek to generate. It is also important to note that property management and tenants come with a wide range of responsibilities. As a landlord, you will be responsible for the upkeep and repairs of the building, among other expenses.  
 
If you have you have irresponsible tenants who are mistreating your rental property. Our proud sponsor, Preferental, has a solution for you! When it comes to rental management services, Preferental covers it all – from dealing with monthly invoice administration to ensuring that your rental gets paid. Preferental is a digital property management platform that aims to give landlords peace of mind. They provide landlords with all the tools and support they need to manage their properties easily while knowing their rental income is guaranteed.
 
Hiring a realtor 
If you seek to generate a passive income, hiring a realtor is not a luxury it is an absolute necessity. You need expert guidance and years of experience in wealth generation to steer the course of your investment. A realtor can help you advance your goals and make sure your investment portfolio continues to grow at a healthy pace.  
 
Finding the right property  
Take your time when choosing your first property but don’t take too much time. The first property is your initiation into the world of property investing and it will be a steep learning curve. Once you have identified the kind of investment you seek to make, it’s time to hunt down the right property for your investment goals. You will have to select a neighborhood or area, for which you will perform market research. Understanding the financial demographics of each area or market will allow you to understand their competitive trends and advantages.  
 
You need to choose a flourishing real estate market where property values are experiencing an upward trend in terms of increments. Prestigious neighbourhoods that are centrally located tend to attract higher rents and prove to be more profitable. Areas with lower property taxes and interest rates are highly recommended to reduce your expenses and increase your income.  
 
Property management  
Once you’ve invested in your desired property and hired reputable tenants to generate a sizable income, you will also find yourself huddled with property management duties. Tenants, be it residents or businesses, tend to have a great many needs that landlords are liable to fulfill. The process of screening and selecting tenants can be a tedious one and requires close attention.  
 
You can perform the maintenance, upkeep and repair duties yourself, or you can hire a property management team to look after your property. In either case, it is important to ensure that your property remains in excellent condition and continues to improve in order to maintain and increase its market value.  
 

Last thought

Many new investors dream of having a successful property investment portfolio. However, it’s not always so easy to know how to get there when you’ve barely purchased any property. With that in mind, if you want to take action and create a successful property portfolio… Well then, we recommend you attend a virtual webinar with our sister company, The Property Academy and our CEO Andrew Walker to explore which strategies will help you maximise your deal profits. In this webinar, you will learn what a real estate portfolio is, how building one works, and how you can track metrics to measure its success. Click on the link to learn more https://thepropertyacademy.co.za/webinar-portfolio-growth/ 
 
Here are some things you will learn:
  • Due diligence and how to stress test a deal
  • Progressive investment strategies for expansion
  • Enhance tax efficiency across your portfolio
  • Structure analysis to decrease exposure
  • Exit strategies to mitigate your risk
  • Alternative creative finance options
 
Lastly, we want to congratulate you for showing interest in learning about property investing. You are doing what the majority of investors don’t do, you are educating yourself! So congratulations on taking that extremely important step.
 
The biggest opportunity of our lifetime is NOW! Become part of our team and learn from South Africa’s top property experts on how to spot opportunities during the present climate, how to finance your deals, reposition yourself and how to build long-term wealth through property investing. Click on the link to accelerate your journey and get cracking at www.joinsapin.com/
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