Here’s One of The Safest Ways to Create an Additional Income Stream and Build Long-Term Wealth

By Elliot Newman

Creating multiple streams of income is a great feeling. For many entrepreneurial people, this means having a business that takes up the majority of your working time – and makes a good profit.

Then, you find ways to take some of that profit – and instead of spending it all on fast cars, 5 Star Holidays, designer clothes and so on – you invest some of the profits elsewhere, creating additional revenue streams.

This is how you can get richer than you ever imagined – by being really sensible with the money you earn, and having a mind-set of ‘delayed gratification’.

Before I show you a winning way to create a second stream of income, let’s talk a little more about:

Delayed Gratification – a Secret to Getting Rich (or Simply Not Going Broke)

Every year you hear of a few celebrities who have run into serious financial difficulties, despite earnings MILLIONS of dollars a year.

How can this be?
Well, no matter how much money you earn, there’s a limit. If all you can see is a bigger house, a faster car, a more expensive watch, and so on – you can make your money run out. No matter how much you earn!

This is the exact opposite of ‘delayed gratification’.

Delayed gratification, as far as income and money goes, is more like this:

Let’s just say, for the sake of argument, that you have $65,000 disposable income each year. Meaning: $65,000 AFTER you’ve paid your tax.

Instead of spending every dime, and taking our endless credit deals to buy stuff you can’t really afford, you say to yourself:

“I’m going to live wisely for the next 5 years and save 20% of my income”.

Now each you have you 20% of $65,000 – which is $13,000 per year – SAVED.

In 5 years that’d be: $65,000 in savings ($13,000 x 5)

Not bad.

Now, what could you do with that $65,000?

Read on and I’ll show you…

Creating a 2nd Income Stream in The Property Market…

Every year, here in England, the Times Newspaper publishes something called:

The Rich List.

I’ve been fascinated by it, ever since I was about 10 years old.

In the Rich List they show you the richest 1,000 people in the United Kingdom, roughly what they’re worth, and what industries they’re involved in.

Can you guess the most common industry the richest people are involved in?

If you said “PROPERTY” – you’d be right!

Remember the old saying:

“Safe as houses”

Well, there’s some truth to that, so long as you invest wisely. I mean, sure, in the past 20 years or so, a lot of wannabe property investors have got their fingers burned (by doing silly things like taking out 100% mortgages), but, done right – property is a SAFE BET.

Here Are 3 Ways to Invest in The Property Market and Create Additional Income Streams…

#1: Buy to Let

The ‘Buy to Let’ Market works like this:

• You buy a house

• You rent it out and earn money

Sounds simple. But, there’s much to consider:

First, as a very general ‘rule of thumb’… avoid 80% plus mortgages. Anytime you have huge borrowings on a property, you often find that all your potential profit (from rent) ends up going to the BANK in your monthly mortgage payments.

Second, look at the lower end of the market, because yields are higher. For instance, if you buy a house here in the United Kingdom for £200,000, you might get £12,000 per year in rent. That’s a yield of 6%.

But, if you buy a house for £400,000, you likely won’t get DOUBLE the rent.

Third, don’t ‘scrape the barrel’ at the very bottom end of the market. Because there are numerous dangers with really poor quality housing. For instance:

• People might not want to live in the area where that kind of housing is – meaning you could have lots of unlet periods where no rent money is coming in

• The types of tenants will will live in this kind of housing might be ‘challenging’ to say the least (expect things to be broken, rent not to be paid, drink and drugs aplenty and so on. Ask me how I know!)

So, one of the keys to making money with buy-to-let is to buy reasonably cheap housing, so the yield is good. While also making sure you buy stuff that will still go UP in value over time, and attract QUALITY tenants.

Do your research to find where that balance lies in any given area!

#2: Renovate and Sell On

This is more involved than ‘Buy to Let’ – but you’ll make more money up front. It’s not a long-term thing.

You buy a house that needs work, at below market value.

You do the house up.

You sell it on at a profit.

Sounds simple.

The key is to be honest about your costs. Factor everything in – from solicitors fees and any taxes you have to pay when you buy the house… to mortgage payments when you own the house and are doing it up… to the actual renovation costs… to estate agent fees when you sell the house and so on.

As a rule of thumb, especially when you are new to this game, whatever you think the costs are going to be – add on 50%. Or, to be really safe, DOUBLE them!

#3: Buy Multiple New Homes and Strike a Deal

Here’s an interesting way to make money in the property industry, and create additional income on a regular basis. A friend of mine has made millions doing this.

Basically, whenever new houses are built, they are often released in phases.

Say a builder plans to build 99 homes. He might split that into 3 phases over 3 years. 33 houses for sale each year.

Generally speaking, the price will INCREASE with each phase. So, if you buy early, in phase 1, you know you’re getting the best prices.

To get an even better price, go to a new development and ask to speak to a key decision maker. It can’t just be one of the regular sales staff. Ask for a sales manager. That kind of person.

They tell that person you’ll buy 3 or 4 homes.

If you have the finance in place – either CASH, or mortgage – you can often get HUGE savings. 25% or 30% is not unheard of.

The reason why the companies will often give you such big discounts is because they have HUGE COSTS. They’ve bought the land, they’re paying builders, they probably have borrowed money from the bank. So, the idea of getting money IN (by selling houses as fast as possible), is very attractive to them.

Here’s how this kind of deal can play out:

A Phase 1 house should cost $300,000.

You buy 3 at once and get them at 20% OFF.

So, instead of $300,000 x 3 = $900,000…

You just acquired 3 houses for $720,000.

That’s $180,000 equity straight away.

But, it gets better than that, because you bought early, in phase 1. And, you know the builder will increase the prices, for the same style of house, by at least 10% for phase 2 and 3.

So, phase 2 could be $330,000 per house.

And, phase 3 could be $360,000 per house.

So, in about 3 years – when the entire development of houses has been built, you’ll have got yourself 3 houses for $720,000 that now have a potential market value of $360,000 x 3 = $1,080,000.

That’s a gain of $360,000.

Not bad eh?

As you can see – if you practice a little ‘delayed gratification’ and SAVE some MONEY… you can then do some pretty tasty things in the Property Industry to create additional streams of income.

Of course, managing multiple income streams takes a lot of work, and plenty of energy…

If you feel like your energy is lacking, you need some ReCharge.

>> Click here to learn more about ReCharge now

And, I’ll talk to you soon…

Your friend,

Elliot Newman