How To Find And Buy Bargain Property Investments

Transcription

1 How To Find And Buy Bargain Property Investments Using Little... If Any Of Your Own Money By Parmdeep Vadesha

2 The author Parmdeep Vadesha and the publisher Vadesha Properties Ltd have made their best effort to produce an informative, useful and valuable course. Neither the author nor the publisher makes any representation or warranties with regard to the completeness or accuracy of the contents of the course. They do not accept any liability for any losses or damages caused or alleged to be caused directly or indirectly through using the information contained in this course. No part of this publication may be reproduced or transmitted in any form by any means mechanical or electronic in any language. This includes all forms and means including but not limited to photocopying, scanning, computer disk, recording, computer modem, or by any informational storage and retrieval system including a web page, web site or , without written permission from the publisher, Vadesha Properties. All requests for permission or further information should be addressed to: Vadesha Properties Ltd, 314 Uppingham Road, Leicester, LE5 2BE. Alternatively, you may us at support@tycoonsystem.com You may print a single hard copy version of this e-course solely for your own use. The author assumes no responsibility for errors, inaccuracies or omissions. This work (in any electronic or digital form or in any other printed material form) is not intended as a source of legal, accounting, financial or tax advice. If advice concerning legal, accounting, financial, tax or any other matter is required, please seek the services of a competent, properly qualified professional in that field. Although this course describes the experiences of the author, it in no way guarantees or implies similar success for others. All product names and/or copyrights of the respective owners. None of these owners has authorised, sponsored, endorsed or approved this publication. The author has received no remuneration of any kind in return for including any company, website or product mentioned in this course. 2

3 Hi my name is Parmdeep Vadesha and thanks for downloading my book How To Find And Buy Bargain Property Investments Using Little Of Your Own Money. You have taken the first step towards finding bargain properties in your area and buying them with little or none of your own money. Rest assured that none of the tips in this book are pie in the sky information that sound great in theory but don t work in real life - these are proven strategies that work on the ground. In fact these tips will work in any area of the UK - even your own. How do I know this? Well I have been investing in property since 2001, through boom and bust, and I have constantly been testing and adapting new strategies and marketing tactics over the last 13 years. After some time I stumbled across the winning formula for finding bargain properties and buying them with little money. This winning formula was so successful that it has helped hundreds of people go on to achieve their dreams and goals through investing in bargain property. We have helped thousands of people and created many financially independent property investors, some of whom you might have even met or heard of. I ve even shared the speaking stage with famous investors Sir Alan Sugar and Dragons Dens James Caan talking about property investment So why are you giving these tips away for free? That s a very good question and here s the catch. I m always looking to expand my team of property contacts throughout the UK as I am now an investor in other people s deals. So the more people finding bargain properties throughout the UK the more potential Joint Venture partners on deals I find :-) Rest assured that you have no obligation to work with me or even stay in contact with me once you finish the ebook - however if you have deals that need financing or a potential partner for a project then feel free to get in touch. Anyway enough about me... Lets get started with the ebook 3

4 Step One - Finding Bargain Properties Donald Trump, Famous Real Estate Investor once said: In property investment you make your money when you BUY not when your SELL. To put it simply, if you can find bargain property and buy for a cheap price you can make paper profit from day one. This way you are not reliant on prices going up - you already have profit built in from the start. This is why bargain properties are one of the core foundations of the property business and the lifeline for property investors. Simply put a bargain property is a property that can be bought for Below Market Value - that is the price you buy it for is lower than the price that it would sell for on the open market. Believe it or not it is still possible to buy property for up to 40% Below Market Value... The problem is that bargain properties are not just handed to you on a plate! You have to go out and find them and eventually build a system where people find them for you.. Don t worry about how you will finance these properties yet, we will cover that in the next chapter of this book. The first step is you need to know where investment properties are and how you can find them 4

5 Apart from the usual auction and estate agency routes there are many other ways of finding investment properties but you must be 'in the market' to stand a chance. You need to spend quality time letting people know that you can buy properties quickly and without messing around. If you can buy properties quickly and without messing around this significantly increases your chances of buying properties Below Market Value (BMV) You have to get yourself known because great investment properties (for obvious reasons) do not shout and scream about how great an investment that they would make... The secretive nature of fantastic investments is precisely why it is so difficult to find and buy them! You MUST spend quality time nurturing relationships with people who come across investment properties, so that they call you right away as soon as they hear of somebody needing a quick and/or cash sale of their property. Some examples of people you need to know: Local estate agents Local letting agents Anybody involved in the building trade Surveyors Mortgage brokers Local busy bodies (usually older ladies/gentlemen or members of neighbourhood watch). These people are surprisingly aware of what is happening in the community. Property finders Usually paid a percentage fee for locating property 5

6 Solicitors probate etc. Accountants will know of clients that may be in financial trouble. Your hairdresser - he/she will always spend a lot of time gossiping with customers so make sure you let him or her know about your property business, and the fact that you pay a finders fee for referrals. The owner of your local off license/store. He/she will also spend a large amount of time gossiping with customers. Sometimes store owners will let you stick up one of your business cards on the window or door. Hairdressers and other local community busybodies are a surprisingly simple way to find bargain properties. Always let them know that you pay a finders fee for referrals Don't forget to hand out your business card to EVERYBODY you meet as you never know who will come across an investment property. I have purchased two of my properties from people who referred leads to me simply because I handed them my card and told them I paid 500 for referrals (always mention you pay a finders fee!) Remember referral leads will make you the most money because they cost nothing to obtain, somebody they trust has referred them AND they have already been prequalified for you. 6

7 The next step is to actually start marketing for these Below Market Value deals yourself, and the best way to do that is by looking specifically for what is known in the industry as Motivated Sellers. Motivated sellers are sellers of a property that need to sell quickly, they are often pressured by a time deadline and will take a slightly lower than market value sale in order to sell quickly. This is how we can structure deals to buy these properties Below Market Value. Situations that might make a seller become motivated can be things such as debt, repossession, divorce, estate sales or job relocation. Think of yourself as a property problem solver, you can solve the motivated sellers problem (needing to sell quickly) and in exchange you can buy a great property deal. It's an example of creating a win-win agreement. But how do you find these motivated sellers? Well it's actually quite simple, as mentioned earlier on you need to get yourself known for buying properties quickly and easily - you need to be positioned as the go to person for people looking for a quick sale. If you can get this message in front of people who are motivated to sell they are much more likely to contact you and become potential property deals. Some pro-active methods you can use to find motivated sellers are: Leafleting the local area - let people know you buy houses quickly for cash (this method is one of the best!) Newspaper advertising - let people know you buy houses quickly for cash and that you are a local investor who can help solve property problems Online advertising - google adverts, facebook adverts letting people know you can help solve people s property problems 7

8 Leafleting is a great way to find motivated sellers. Let people know you are a property problem solver and can help them sell their house quick. Make sure you include your phone number or website as well as the benefits of them contacting you There are in fact many more methods you can use to find motivated sellers and bargain properties, far more than I could list here. For a full list of marketing methods and detailed instructions for how to implement them in your area, check out my best selling property course Success Through Property >> 8

9 Step 2 - Financing Your Property Deals Ok so now you know the basics of finding bargain property deals, the next important step is how to finance them! The simple financing method we will be covering in this section of the ebook is called OPM (Other Peoples Money) The basic idea behind OPM is that you are using other people s money to make yourself money. The great thing about the property business is that it is very easy to raise OPM when buying property assets when compared to any other asset class. This is because almost everybody (even an unsophisticated investor) understands property. In fact a bank would be far happier lending you money to buy a property than it would be if you tried to borrow money to buy shares in the bank itself! Doesn t that tell you something about the way banks view property as an investment? Safe and sound in my opinion! So here are the top 6 ways in which you can raise finance to buy properties using OPM. 1. Residential mortgage These are bank loans (mortgages) that are intended for people who want to live in the property themselves so are not suitable for investors, however I have included them here as an example of how easy it is to use OPM to buy property - even standard residential buyers can use OPM! 2. Buy To Let mortgage (BTL) mortgage This is where the bank will loan you the money, up to a certain amount (e.g 70% of purchase price) to buy the property. Buy to let mortgages are designed for people who wish to rent the property out long term as a rental investment. 9

10 3. Commercial loan Commercial loans are more expensive than BTL mortgages, however they are a great way to raise finance for properties that most normal BTL lenders would not touch. For example Houses of Multiple Occupation (HMO s), flats above shops, mixed residential and commercial, commercial properties, hotels etc. The good thing is that when compared to Buy To Let - commercial loans are often a lot more flexible. 4. Bridging loan This is where a bridging company will loan you a percentage of the full market value of the property. They are SHORT TERM loans and are great for heavily discounted properties. Bridging can be used to quickly raise finance for a BMV property, which is then refurbished and mortgaged with a normal BTL mortgage (or sold) to create quick capital gains. 5. Private Investors Private loans are where you borrow money from a private investor to purchase the property. The best thing about private loans is they are very flexible and can be structured differently for each deal. These are one of the most popular finance methods in the current market. 6. Joint Ventures Joint Ventures are where you and a private investor or partner take on the project as a joint venture. You both have a stake in the deal and both get paid a percentage of the profits. This is a great way to get started in property as you can Joint Venture with investors who are more experienced than you. Now in this ebook I ll be covering the Private Investors of method in detail which you can go out and use straight away to finance your property deals. This is one of my favourite methods and is currently working very well in the current climate.. For full details on each strategy check out my full course Success Through Property >> 10

11 Private Investors I kicked off my portfolio using deposits funded by private investors which is how I managed to buy a lot of properties without using any of my own money. Notice how I said none of my own money as opposed to no money whatsoever! This is the main principle behind using OPM to buy property. The golden rule of working with private investors is to start small. Build a reputation for consistency and only ask for funding that suits your experience and relationship with the potential investor. If you are enthusiastic, mature, passionate, knowledgeable and above all reliable and trustworthy private investors will want to work with you. Above all else they want to know their money will be safe in your hands. Show them examples of times when you have been responsible for handling other people s money and give them the references of people they can contact. Working with private investors is often a long term relationship. You need to focus on building a win-win relationship with your investors. 11

12 BONUS TIP If you are not ready to begin using private finance to buy your own properties then why not gain valuable experience by working as a finder for a property developer or experienced investor? By finding properties for property developers you will gain valuable experience and make some great contacts along the way. By reading this book you will learn how to find properties so that shouldn t be a problem. You can find these properties for other people and then charge them a finders fee for the privilege. This is a great low cost way you can get started in property and make some capital gains. Once you have done a few deals and gained some experience you will have built a track record that you can show to other potential investors When you do a successful deal always take before and after ' pictures and file them away neatly. This makes a great tool for impressing private investors. If you can regularly come up with the goods and offer your investors a respectable rate of return on their money there is no reason why they will not work with you. In my experience most investors will look for 10%-30% gross return per annum. This will vary greatly depending upon a number of factors. "How do I find private investors?" Try reasonably well off family and friends first if you know of any. Do not be put off by the scare stories of working with friends and family. Things can work out well if you are always honest and upfront, and the investor is well aware of the potential risks involved. All the better if the investor is already fairly active because he will understand things do not always go to plan. Please note: If you cannot handle money responsibly then you shouldn't even be in the property business let alone borrowing from your friends and family! 12

13 If you have a good character and you know how to handle money responsibly and prudently you will be in with an excellent chance. Carefully explain the risks fully to the investor/s from the OUTSET. Do not be scared to tell the investor that they may lose some of their money if the deal doesn't work out - they will admire you for your honesty and upfront attitude. Always UNDERPROMISE and then OVERDELIVER! I have worked with family and friends in the past and I have made them a lot of money in the process. There is no reason why you cannot do the same. If you have no luck with family and friends try the local business link, chamber of commerce, Rotary club and business angels. Chamber of commerce - Rotary club - Business angels - All have good links with private investors looking for sound investment opportunities - send them your business plan or proposal. Attend any free meetings or gatherings to network with potential investors and get your face known. Join local business clubs and associations. 13

14 Don t just write a letter and forget about them, pay them a visit, direct them to your website, give a short speech if they will let you. Persist, persist, persist, persist, persist, persist, persist, persist, persist, persist, persist and persist some more! Working with investors takes time, and most will often need more than 2 meetings/contacts before they invest in you! Persistance is key and this is what will give you an advantage over your competitors! Keep trying. If you are hungry enough they will eventually take notice. Careful well thought out persistence is the key to making it with private investors. Keep them informed of all your deals and even if they do not invest with you, you will be in their mind as an active developer. If you need finance for any of your property deals and are looking for private investors, I may be able to help. Just send my team an at support@tycoonsystem.com with your proposal and if it's something we might be able to help fund we will be in touch! So there you have it. The starting steps to find bargain property deals and how to raise finance for them! If you start implementing the tips covered in this ebook today I am confident you will be well on your way start towards building your bargain property portfolio in no time at all. 14

15 If you would like to turbo-charge your property journey then I suggest you check out the bestselling acclaimed property course Success Through Property. >> The tips and tricks in this ebook are a drop in the ocean compared to the number of things in Success Through Property. You will learn the exact blueprint from start to finish on how you can build your bargain property portfolio, as well as everything you need to know about buying Below Market Value property. It will be as if I was right by your side walking you through the process step by step. Check it out here >> I wish you the best with building your bargain property portfolio and I look forward to hearing how you get on Parmdeep Vadesha Full Time Property Investor Author of Best Selling Property Course Success Through Property "I bought Deep's Property success course, and I must say, I am over the moon with what I got. You get 'THE WORKS'. It really is the beeze knee's. There are no fancy bits, just pure good, solid information. It starts with goal setting, how to build a team, who to include, structuring, strategies, planning, how to find bargain properties, lead generation, auctions, debt counselling, property valuating, how to find tenants, dealing with tenants, asylum seekers as tenants, DSS, negotiating tactics, how to 'flip' property, mortgages, loans, investors, business categories, (ltd co, s/trader, partner, llc, etc), and LOADS more. It's all there, from first thoughts, to final completion. All you have to fill in are the niggly bits that your solicitor should find out for you. For anyone contemplating buying Deep's course, DON'T HESITATE. It's worth a bloody darn site more than what he charges, believe me." Chris Ralph 15