Do you know what the BIGGEST grumble I hear from property investors is?
“I can’t find enough deals.”
And it’s crazy really…
Because finding new leads is actually pretty EASY to do. But what most people fail to realise is that the key to your property business success (as with most things in life) is to follow a PROVEN FORMULA.
So here’s why I’m writing to you today…
Are you struggling to get good property leads in today’s tough market? If yes, then feel free to tap into our system for free.
One of the most important jobs of a successful property investor is to find a good property investment deal and structure it to make the most money from that deal. It is important to note that a property investor is not a solicitor, a property management expert or even a maintenance guy. These jobs although essential should always be outsourced to the appropriate professionals.
In addition to deal structuring, a property investor needs to be able to conduct a proper valuation of any property to decide whether a deal is worth pursuing or not. Estate agents and surveyors value property every day. By using similar techniques of monitoring sold prices and market conditions, there is no reason why any lay person can’t value properties himself.
A good property investor will always make money regardless of what the market is doing. By making a list of comparable prices of properties which have recently sold in your area and by speaking to estate agents who are very close to the market you will be able to make a better investment decision.
We all know that it is more difficult to find a bargain in a rising market than it is if the market is falling. However, in a rising market the probability of selling the property immediately for a larger profit also increases. Hence, your investment strategy for property investing in a rising market might be to flip property. If the value of properties is generally decreasing then there are more opportunities to bargain and hence obtain some great property deals. These properties should be kept as rental investments. Henceforth, you can make money whether the market is rising or falling.
Any good property investor should consider the following when investing in property:
– limit your risk by doing your homework. Determine key factors such as the average length of time properties have been on the market this month versus last month to help gauge market condition.
– leverage your finances. The less of your own money you invest in property, the more properties you can buy and you will also risk less of your capital should things go wrong.
– assess the tax situation: Taxes are an important part of successful property investing and this can make a difference between positive and negative cash flow. Always know your tax situation and use it to your advantage. Hire a good tax accountant to advise you.
– know your likely expenses before any property purchase. This will allow you to budget for any development work that may be necessary.
– always conduct a thorough inspection of your property before you buy it. Never buy a property without examining it. Consider hiring a builder or surveyor if you are unsure about anything.
– compare property values before purchase. Always compare your property value with a similar property in that area before buying it.
– learn how to negotiate with estate agents and vendors. The less you pay for your property, the greater the profit. Never pay asking price for property.
– always have an exit strategy in place. Why are you buying this property, how much will you spend and what do you want to do with the property once any works have been completed.
The property business like any business will require you to do your homework. Follow these simple tips and your success as a property investor will be greatly heightened.
I recently read that 8/10 millionaires made their millions through real estate. Whether this statistic is entirely true or not, I don’t know. However, what I do know is that A LOT of people have made their millions from property. In fact, I would even go so far as saying that more millionaires are created from investing in property than any other industry.
If you are interested in obtaining a good passive income, then I would definitely recommend you consider property as one of your strategies for wealth creation.
But be warned, property investing is not a short term get rich quick scheme. Done properly and with guidance, you will gain:
• Amazing capital growth – your portfolio will increase by £100,000’s a year. • Great cash flow – you will obtain an amazing monthly passive income. • A legacy to pass down to future generations.
If you are seriously considering property investment as a career choice, please note that you need to look at it as more than just a hobby. In other words, you need be put some effort in for it to work. If you do only look at property as a hobby, you will only ever achieve hobby profits. Your dreams of earning millions from property will remain just that – dreams!
Property investment, like any business, is a serious business and you need to start investing with the right attitude. Working just one day a week on this business is simply not enough especially when you’re starting out. I’ve known a lot of people who have started investing in property only to fail miserably purely because they expected too much in too short a time.
So how do you become a serious property investor? Simple.
As a minimum, you need the following three traits to succeed
• Knowledge
This can be obtained from mentors, books and seminars. To do well in any business, you don’t just need specialised knowledge but will also need to develop yourself personally.
I would encourage you to attend personal development events to help you to move forward quickly.
• Personal Motivation
You need to be motivated to do well any aspect of your life. A lot of people fail because they give up too soon! They try one or two techniques recommended to them, find they don’t work and decide property investment doesn’t work!
Model yourself on a successful property investor that you know. Keep going and don’t give up.
• A Team
To do well in property investment by your self is almost impossible. All successful property investors that I know have built a team of clever people around them. You need to do this also.
As a minimum you need access to good solicitors, accountants, financiers, builders, other property investors and finders. Become a prolific networker, show people that you are a doer and expect results in your business and allow like minded people to join you in helping you to grow your business.
Ignoring the recent blip, property investment in the UK has witnessed massive growth over the last decade. A house bought 10 years ago, would be worth around 300% more today. If you were to look at house price growth over a longer period, you’d be amazed by the results. For example, if you had bought a house in 1952, today it would be worth around 90 times more!
At an average growth of 8% per year, a house bought today for £215,000 would be worth in excess of £1million in 20 years! 10 houses bought today for £215,000 each would be worth…….etc.
Even today, as the market shows some evidence of slowdown, there are pockets of above average growth in certain towns and villages across the country. It’s the job of the property investor to hunt out these areas and milk them for all they’re worth.
When looking for property to buy in the UK, it is always advisable to do some research before commencing any viewings. Recent statistics on house values in any one particular area, historical data and local trends can help you to build a clear picture of the suitability of any one location for investment purposes.
A common misconception among novice property investors is that you can only really make money in property when house prices are going up in value. In this scenario, you would buy a property for x amount and resell shortly after for x+growth amount, pocketing the difference in value. If the market was flat, your property would still be worth x several months later, i.e. exactly how much you bought it for. When house prices are going down, your property would be worth less several months later, e.g. x-growth.
However, any experienced investor will tell you that you can make money from property investment regardless of whether house prices are increasing, decreasing or whether the market is flat. By buying well below market value, you would safeguard your investment from any short term economic trends that would normally affect your property’s value. You would also gain immediate equity in your property investment.
When deciding to embark on a career in property investment, as with anything else, you need to educate yourself. You can do this by attending seminars, attending courses and meeting others in the same field. Talk to real estate agents, brokers and lenders to gain a good basic understanding of current and future trends in property investments. Furthermore, take advantage of free online courses and material to learn the ins and outs of property investment.
Property investment is not rocket science. By learning and applying just a handful of basic principles, there’s no reason why anyone can’t benefit from the UK property investment market.
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.
Since Houses in Multiple Occupation (HMOs) provide much needed affordable housing, particularly for younger people, there is a strong market for such accommodation. I can only see this market growing further.
As property prices increase, first time buyers are also getting older. 5 years ago, it was common for a sub-30 year old to purchase a property. However, because of the current house price/income ratio, it’s uncommon for anyone below the age of 30 to be able to afford a decent property without raising a huge deposit.
Therefore, people are ‘forced’ to rent. Those that can afford to, will rent out a single bedroom flat. Otherwise, it is more common for groups of friends to live together in 2+ bedroom houses and flats.
A tenant will often think to himself, why pay £700 per month on a mortgage when you can rent a single room from £200 per month depending on where you live. This has created a huge demand for HMO landlords who need to fill rooms in their multi-let properties.
The type of people that would want to live in such accommodation include, but are not limited to:
In fact anyone, who enjoys living with other people. I get several calls a day from the above types of potential tenant looking for individual rooms to let in a property.
So if you are looking to purchase an investment property to let out to sharers it may be worthwhile to determine where these sorts of people would like to live. Once you have shortlisted several such areas, you can focus your efforts accordingly.
