Scott McGillivray, the star of the HGTV show, Income Property, was a speaker at the Leading Real Estate Companies of the World Conference in Las Vegas and had lots to say about investing in real estate.
Scott started investing in properties when he was 19 years old. He believes that by buying, owning, renting and maintaining properties, you can build wealth for the future. Here are a few highlights from his conference presentation:
Positive Cash Flow
Take your property rent income and subtract any expenses from the rental home and you are left with cash you can either save or use to invest in more properties.
When you have an income property, your tenant helps to pay down your mortgage balance. With the equity built up in your investment, you can buy more properties as well as let your investment homes appreciate in their value for future wealth.
Scott also called this flipping. Although he is not a big fan of flipping houses, he did mention that by investing in a home, fixing it up and selling it right away can bring you cash with the profit made. However you will not enjoy long-term property appreciation benefits.
One final note from Scott was that you might want to consider investing in vacation properties or executive rentals as a way to earn money from your investment.
Have you thought about investing in property for income?