Posted on

Using An Estate Agent To Source Below Market Value Property

 

Below Market Value Property One of the most important jobs of a property investor is to source below market value property. A below market value property is a property that you have bought for less than its value if it was to sell on the open market.

For example if you were to purchase a £100,000 property for £80,000 you will have bought it at 20% below market value. This property will have £20,000 of equity which is yours to keep. Furthermore, since the property is below market value, there’s a strong likelihood that you will be able to buy it with no money down.

In other words, without requiring a deposit. Theoretically, you can buy as many properties as you desire without ever using any of your own money whatsoever! If you are able to do this repeatedly, your business will experience phenomenal growth.

In contrast, if you were to buy a market value property, the traditional routes of property purchase would demand a deposit of anything from 5-10%. As a Property Investor, if you were only to buy property at market value, you would soon run out of money and your business would come to a stand still.

This is why it is so important for a Property Investor to invest as much as possible in below market value properties.

So, how do I find below market value properties?

Regardless of what people say, I find estate agents to be a valuable resource when it comes to buying below market value property.

By being persistent, and proving to an estate agent that you are a serious investor, you will have them ringing your phone of the hook with potential deals. Initially, an estate agent may pass you deals that are not below market value.

If this was to happen, thank the agent for calling you and let him know that the margins don’t work for you. However, you are still looking to buy several properties that month and he should contact you again if he receives anything.

At all times, remain polite and check with the agent at least once a week. Over time, a relationship will develop with your estate agent and he will start passing on good property leads which meet your investment criteria.

Once you have completed on a couple of deals with your specified agent, you will find that he places you on his preferred list of contacts. This is where you need to be to receive the great deals.

Ideally, you should be a preferred contact for several agents in your area. This way, you will ensure that you will hear about any potential property deal first.

 

 

 

Claim Your FREE Limited Edition CD and eBooks Right Now: 

http://www.PropertySuccessFormula.com

Property Success Formula CD Property Success Formula ebook 5 Golden Secrets To Property Success ebook

Facebooktwitterredditpinterestlinkedinmail
Posted on

Your Goals Make You Who You Are!

 

If you want to get anywhere in life or business, it’s vital to have self belief, i.e. you need to sincerely believe that you will achieve your goals and aspirations.

Without belief in yourself, there’s a high possibility of failure. The following article speaks for itself:

“An old Amerindian legend tells of a brave who found an eagle’s egg one day and put it in a prairie chicken’s nest. The eaglet hatched at the same time as a nest full of prairie chickens saw the light of day, and grew up alongside them.

All his life the young eagle did exactly what prairie chickens do. He pecked for insects and grubs in the earth. He clucked and cackled exactly like a prairie chicken. And when he flew, it was always in a cloud of feathers and only for a few yards at most.

After all, that’s how prairie chickens fly. The years passed and the eagle grew old.

One day he saw a magnificent bird gliding high in the cloudless sky. Gracefully the huge bird rode the air currents, hardly moving his great golden wings.

"What a beautiful bird!", exclaimed our eagle to his prairie chicken friends. "What is it?"

"That’s an eagle, the king of birds," clucked his neighbour. "But you better forget about it. You’ll never be an eagle."

And so the eagle forgot all about the magnificent bird and died, thinking he was a prairie chicken.

Most people live life as a prairie chicken because they believe they are something less than they actually are, or could be.

They slave hard at work, for little money, in a job that they think is secure, only to retire old on a pittance of a pension. They look at successful businessmen and entrepreneurs who’ve made if for themselves, but are constantly told:

“You better forget about it. You’ll never be a millionaire!”

This is not the way to live your life. If you want to be an eagle, you need to start thinking and acting like one NOW.

With the above in mind, you need to sit down and set yourself some clear goals. When setting your goals:

*Decide exactly what it is that you want. For example, if you are an aspiring property investor, one of your goals could be:

“Buy a £100,000 property with no money down, before 1st August 2007”.

*Write your goals down. Merely thinking up a goal and leaving it in your head is never a surefire way to success. To guarantee certain success, you MUST write it down.

*Create a deadline for your goal

Having a deadline will help your goal become more realistic.

For example,

“Buy a £100,000 property with no money down” has no sense of urgency and hence has a high chance of failure.

*Create an action plan to achieving that goal.

For example,

1. research my local areas for properties up to £100,000
2. visit local estate agents to arrange viewings
3. develop my marketing plan to bring in possible deals
4. set up my finances
5. organise my legal team to handle the purchase
etc.

An action plan will greatly enhance your chances of success as it helps break a larger goal into easily digestible chunks.

Once you get into the habit of actively setting your goals and truly believing that you can achieve them, you will find to your amazement that you consistently meet your targets and reach the dizzy heights you previously thought you were incapable of.

Claim Your FREE Limited Edition CD Right Now:

http://www.PropertySuccessFormula.com

Facebooktwitterredditpinterestlinkedinmail
Posted on

How To Successfully Buy Your First Investment Property

 

Once you have decided that you want to invest in property, you need to decide how to source your property at a good price. There are several methods that you can use to source property below market value. Three such methods are listed here.

The Internet

One of my favourite Property Mentor’s Dolf de Roos talks about the 100 – 1 rule (he calls it the 100:10:3:1 rule) in his book:

"Real Estate Riches" If you don’t have this book, I would highly recommend that you buy it. It’s one of my favourite ‘right-to-the-point’ books on real estate.

The 100-1 rule stipulates that if you were to look at 100 properties, you may end up buying one good deal! Property is very much a numbers game. The more you look at, the more chances you have of knowing exactly what it is you’re looking for, and henceforth finding your deal.

Not a day goes by when I’m not looking at property – if not physically, I will be analysing deals in the local property paper or on-line. I prefer on-line as I can literally analyze hundreds of deals in one sitting. If you’re not already familiar with the following websites, I would highly recommend you spend some time familiarizing with them:

If you are a beginner and are not sure of the type of property that would best meet your needs, it is definitely worth spending time doing research on the internet. You can also search for properties to let. This will allow you to understand rental values and help you to decide how much funding you will need in you purchase, as buy to let financing tends to be based on rental valuations.

Estate Agent

Regardless of what people say, I find estate agents to be a valuable resource when it comes to buying property. I have bought several below market value properties through estate agents.

By being persistent, and proving to an estate agent that you are a serious investor, you will have them ringing your phone of the hook with potential deals. However as with anything, you need to be careful that you are not receiving ‘dogs’ – and that the deals are indeed deals. Once you understand your market, this should be simple.

Get to know your local estate agents and get them to know you. Be persistent in your approach. Go around in person and speak to them. Use them to give you their opinions on any particular area. If you are serious about investing in property, you need to maintain regular contact with at least three good estate agents in your preferred area. Over time, as I have found, these agents will be worth their weight in gold!

Do Your Own Marketing. This is my preferred method of acquiring property. You could start off by advertising in your local newspaper.

Typical adverts might read:

"Properties wanted. Cash buyer waiting, any area considered"

"Repossessions stopped. Don’t wait for your house to be repossessed.
Ring now for an instant decision" TEST your adverts. What works in one location may not work in another area for any number of reasons ranging from social demographics to the type of newspaper you’re advertising in.

Claim Your FREE Limited Edition CD Right Now:

http://www.PropertySuccessFormula.com

Facebooktwitterredditpinterestlinkedinmail