I was speaking to several property millionaire friends last weekend and what we noticed was that our most successful students were those who were no longer using last year’s strategies.
To succeed in any business, you need to move with the times. Things have changed a lot in the past 12-18 months especially in the way we run our property businesses.
I’ve just had a vacancy come up in my popular MPM Programme where I personally hold your hand and train you 1-2-1 to succeed in property using tried and tested methods that work today.
We always receive more applications than vacancies so please be sure to complete the application form truthfully and in as much detail as possible:
If you are unsure of anything, please drop me an email stating “MPM application” in the subject heading. This way, I will be able to respond to you personally.
Good luck and speak soon!
Javaid Kiyani
ps. I will personally teach you strategies and techniques you should be using this year to grow and streamline your property business:
There are certain factors which need to be considered when buying land. In this article, we discuss the basics of buying land for profit.
The first thing to consider when buying land is its location. There is a great difference in the price of land depending on whether it is located in an urban area or the countryside. It may often be difficult to obtain planning permission to build houses on land in the country, especially if the land is green belt. Thus, it may be possible to buy land cheaper in the country. This could primarily be due to supply and demand – fewer potential buyers available. A thorough appraisal of any land, especially its location should therefore be conducted prior to parting with any cash.
The surrounding environment must also be taken into consideration. Smell and ambient sounds play important factors in determining the feasibility of the land for further development. It is not expected that people will trade odors of fumes in urban areas for the agricultural smell of pig dens!
It is also important to identify any zoning issues which could affect the land you are considering to purchase. Certain greenbelt land cannot be zoned and sold as development land. As an investor, you need to be aware of this and ensure you do not buy land that is protected under this scheme.
The geodetic structure should also be identified. This is also necessary to minimize the damage that might result from hazards affecting more particularly the soil. Soil component structure will reveal important information that will determine the feasibility of further development.
Access to the land by way of existing routes and roads is of paramount consideration. Land with good access routes is more likely to achieve planning permission for new build properties than land that is in the middle of nowhere.
Services such as water supply and electricity are also important points that need to be considered when purchasing land. The state of these services must be studied in order to determine if development of the land is likely to be possible.
When buying land, you can either purchase plots with planning permission approved or use a long term approach of buying land with no planning permission in the hope of obtaining it further down the line. Obviously the latter option will provide greater returns associated with the enhanced risk levels.
To reduce your risk, it may be advisable to purchase an option to buy that land at a prescribed price for say within 2 years. The 2 years should be enough for you to determine whether or not you are likely to obtain planning permission. If planning permission is likely to be granted, you purchase the land. Otherwise, you don’t go ahead with the purchase. This way, you only set to lose the option fee and not the entire purchase price of that land.
Purchasing property without using your own capital is not difficult as long as you are open to learning different techniques and strategies.
Typically, the easiest property to buy no money down is the one which has been on the market for a long term. Long term here would mean several months – anywhere from 3 months upwards. Generally, the longer the period of time a property has been on the market for, the more motivated the seller becomes. Hence, it becomes easier to negotiate a lower price and get a good deal.
In today’s (buyers) market there are ample below market value property deals available. Although the market has improved since this time last year, a lot of people are still finding it difficult to sell their houses and are thus having to reduce their prices, in some cases considerably.
When negotiating with the vendor of a below market value property, the buyer should prove to the property owner that he has sufficient funds for the purchase of that property. This can be done by showing bank statements or any documents evidencing credit status. In this way, the seller will be assured that his loan will be satisfied from the resale of his property.
If you are not able to pay for the property using your own funds, you may want to try and find cash rich investors to help you with the purchase. Cash rich investors can be found through networking events, especially events that attract high net worth individuals – I find business angel and wealth management events aimed at the wealthier individuals to be great places to mingle with other wealthy people looking for better vehicles within which to invest their savings.
Prior to agreeing to any purchase, the buyer or investor should always check the sellers mortgage statements to ensure that his offer price is able to meet this obligation. If the offer price is less than the mortgage amount, the mortgagee will not be satisfied on completion of the sale and hence the sale will not be allowed to proceed.
Several parties are involved in the no money down buying process. Firstly, a surveyor will value the property you are considering purchasing. If the price you are buying the property for is truly less than the true value of that property, this will be reflected in the surveyors valuation figures. Solicitors and financiers are also involved in ensuring the deal goes ahead as planned.
The property purchasing funds that you apply for need to be based on the valuation figure and not the purchase figure of that property. This way, your mortgagee may be able to lend you the entire amount of the purchase. Often, if the discount is big enough, you can also receive cash back from this type of deal. Again, this depends on the purchase, price, valuation figures and the mortgagee who is lending to you. Rental calculations are also taken into account especially if you are purchasing the property as a rental investment.
For a truly no money down deal, none of your money should be used for that transaction. This would also include monies required for conveyancing and surveyor fees etc. These additional expenses can be paid for by using interest free credit cards and low interest loans. You can repay these loans when you decide to release some equity in your property. Obviously, in a falling market, some of these strategies become more difficult to implement and you may need to use other methods. This is why it is so important for you to keep your eyes on the ball and ensure that you remain educated to the latest techniques and standards.
Before you buy any property from auction, you need to do some serious research. Here, we will discuss some useful tips any auction property purchaser should use when considering an auction property.
For a much more detailed discussion and the mechanics of buying from auction, be sure to read Your Property Bible.
Prior to the auction, you need to secure a copy or catalogue of the property lots that will be auctioned in that particular auction house. It may be worthwhile to obtain several catalogues from local auction houses so that you can compare property specifics. A lot of the auction houses charge a small fee if you wish to be sent catalogues periodically. However, you may not need to pay for your catalogue if you ring the auction house and request a catalogue every time you wish to attend.
Once you have the auction catalogues to hand, you should scan them for properties that suit your preference both in terms of guide price and the location of the property. You should always visit an auction property prior to bidding as I’ve seen some properties which look ok from the outside but have been completely trashed on the inside.
On the day of the auction, you need to acquaint yourself with the mechanics of that auction. Usually, there is a need for prior registration if you wish to participate in the bidding. Be sure to take in any identification documents with you. You will not be allowed to bid without proof of ID. You will also need to take in a cheque book or bankers draft for any deposits that may be required.
Never arrive late. This is very important because you will need time to familiarize with the auction room and the mannerisms of the auctioneer. On arrival, always check the list of properties for any changes or alterations. It is not uncommon for properties to be removed from auction proceedings prior to the auction.
If you are interested in bidding for any particular property, you should check any legal paperwork the auction house may hold for that property. If there are any conditions of sale that you are not sure about, it is imperative you speak to the legal team dealing with that property sale – you should be able to speak to them prior to bidding for your lot.
Double check any terms and conditions of the contract governing the schedule of payments. It is extremely important to make sure that you have available funds to purchase any one property in accordance with the terms and conditions of that lot – some lots may require completion within 14 days; I’ve been to auctions, where the conditions of sale have changed in between the catalogue being printed and the date of the auction; in such event the auctioneer will let you know before you’re asked to bid for that property.
If you feel that there maybe a need for a mortgage, it is important that you arrange this before attending the auction. Otherwise, you will risk losing any deposit you put forward for a property that you are subsequently not able to raise finance for. The mortgage will obviously be dependent on a satisfactory survey of the property – you will need to pay for this understanding of course that you will lose this fee if you don’t get the sale.
If there are any properties that you are interested in, it is important to remember that an offer can be made before the auction. The seller will consider the offer and get back to you if he wants to proceed on that basis. In the event of your offer being accepted, the property will be removed from the auction process and you will be obliged to complete on the purchase.
If you are to bid, make your bid clear so as to prevent confusion on the part of the auctioneer. Whenever bidding at auction always have your maximum possible bid in mind and don’t ever deter from this amount. Your maximum bid will take into account any works that you feel need doing to the property and also any profit levels you need to clear.
If a property fails to sell at auction due to the reservation price not being met, you should consider making a bid directly after the bidding has stopped.
Auctions are still a popular form of obtaining (below market value) bmv property, however, you need some basic knowledge of auctions and the way they operate before you should ever consider buying property from auction. Learn more about buying from auction here:
You should always do your homework before buying any property. Here, we discuss various things you need to consider before and during your property purchase.
Firstly, if you have little time to run around yourself, you may want to hire property agents and finders to do all the research for you. A finder will scout for properties that suit your needs both in terms of price and any specific details of the property, for example size, style, location of the property etc.
A finder can save the property investor a lot of time especially, if they are looking for property in unfamiliar territory. When I use finders, I usually state a minimum of 15% below market value (bmv). However, in today’s market, I would prefer a minimum of 25% bmv as the market is depressed. In depressed markets, there are more deals available; however, financing those deals has become more difficult.
To get the best deals, your relationship with your property finders needs to be a good one – this you can develop over several months. Once you’ve bought one property via your property sourcer and in accordance with agreed terms, you will find them wanting to deal with you further.
This will save you time, money and effort in the long run. Property finders can also offer advice when it comes to financing and conveyancing your purchase – a lot of finders and deal packagers will prefer you to use their team as a condition of the purchase.
It is sometimes advisable to be armed with an option to purchase the property. This will offer you security that the property will be on hold by virtue of the option contract. An option agreement binds the seller to you; however, you are not obliged to exercise the option, i.e. you may pull out of the purchase for whatever reason further down the line.
There is a lot of noise around property options and buying a house for a pound at present – however, please note that you don’t actually purchase the property for a pound – you are merely buying controlling rights to that property which could lead to purchase at a later date if you choose to.
If you are buying the property using external finance, it is always wise to have a financial adviser run through the numbers for you. You need to do this before the purchase, not during or after you’ve bought the property! Please note that property investing is a business – buying a bmv property which is not cash flow positive could become a financial strain on you especially in today’s market when it may be more difficult to sell.
I was speaking to several property millionaire friends last weekend and what we noticed was that our most successful students were those who were no longer using last year’s strategies.
