The bottom line is it takes money to make money. Who says it has to be your money, though?
One of the great things about rental property investing is that you can use other people’s money. Usually the
“other person” is a bank who gives you a loan to purchase a property.
Thus, having the ability to secure loans from lenders is key.
What is one of the most important factors in getting a loan?
Income, especially showing consistent steady and predictable income into the future income.
Those of you with a W2 job……
You Should Start Investing While Still at Your W2 Job.
I’ve been on both sides of this equation. Trust me, it’s alot easier when you have that paystub to secure loans.
In fact, I have more assets and equity now than I did five years ago, yet it is harder for me to tap that equity now than it was then because I’m self-employed now. The W2 job made it easier.
Don’t get me wrong, there are private financing options out there, some of which I have used. However, you pay a premium for them and things like outright equity lines aren’t always an option.
Investing and Working, Yikes!
Sounds like even more to do on top of an existing full-time job. In some ways it is, but if you want to build wealth you need to take steps most won’t.
If you are smart though, you build a team that does much of the work for you. Get an agent tracking down properties for you. Find yourself a go to lender that knows your financial situation and hire property management to find tenants and maintain your property.
In the end, it’s worth the extra effort to leverage that W2 for a while and get a few loans and properties under your belt. I know it worked well for me!
Find all about how I leveraged my W2 to acquire rental properties in the Investing in Rental Properties book.