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Smart Investor

Posted: 08 Mar 2019
Estimated Read Time: in 9 minutes

Platinum Property Partners can assist you in building a cash flow-rich portfolio based on a proven HMO model

Smart Investor

According to Skandia’s ‘Millionaire Monitor’ report, most millionaires see owning bricks and mortar as a top priority, with 49.9 per cent of the UK’s wealthiest people owning more than one property in the UK.

While it’s always interesting to learn what the UK’s wealthiest people are investing in, it’s important to understand that property investment is a long-term commitment - a marathon as opposed to a sprint.

Cash flow is reality

While many people will invest in property for capital growth, Platinum Property Partners (PPP) puts the main focus on something different - cash flow. Turnover is vanity, profit is sanity and cash flow is reality.

Most businesses fail, not through lack of profit, but through lack of cash flow. So when building a profitable and sustainable portfolio, cash flow must be the primary focus. It will enable you to remain for long enough to benefit from any capital uplift.

It’s important to realise that not all income is created equal. Some streams are linear and some are leveraged.

Linear income is what you earn from a job. If you don’t turn up for work, you don’t get paid. The additional problem is that you can only work so many hours in a day, so there’s a limit on how much you can earn.

Leveraged income is when you work once, but continue to get paid over and over again from the initial effort. The way to become wealthy is having leveraged income being earned, whether you are working or not. The wealthy make money even when they’re asleep.

That is the scenario for smart property investors. They may initially work hard to save a deposit and then invest it into property, but then their money starts working for them and generates leveraged income.

Rather than getting another job, wealthy people know they need to send their money out to work for them. So instead of exchanging their time for money, they create leveraged income, which allows them to exchange their money for time.

On that basis, Franchise Partners who own a PPP property portfolio consider their properties as employees. And what fantastic employees they are! They work 24/7/365, so you don’t have to.

Service provider

If your properties are your employees, this makes your tenants your clients. As a landlord, you are a service provider and, in order to be successful, you need to understand and meet the needs of your clients.

There are more than 70 government regulations that landlords need to adhere to in order to be compliant. It can often be overwhelming to understand your legal obligations and how best to build a legitimate and highly profitable property business.

So before you embark on your property marathon, you may like to ‘warm up’ by discovering how PPP can assist you in building a cash flow-rich portfolio based on a proven HMO (House in Multiple Occupation) model.

As a PPP Franchise Partner, you’ll be able to fast-track the acquisition of your own lucrative and sustainable property portfolio, backed by a world class, comprehensive support system.

PPP doesn’t promise you’ll be a millionaire in a year. In fact, if you’re looking for a ‘get-rich-quick’ solution, PPP would advise you to look elsewhere. However, PPP’s successful Franchise Partners are living proof that the company’s methods and systems work and that PPP can fast-track your property marathon, help you get up and running quickly and take away a lot of the pain of the often expensive learning curve.

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