DISCOVER HOW TO CREATE CASH FLOW THROUGHT PROPERTY

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1 DISCOVER HOW TO CREATE CASH FLOW THROUGHT PROPERTY 5 Secret Strategies Revealed! [This FREE report reveals 5 secrets strategies to creating monthly cash flow through property starting from zero thanks to the credit crunch!!.]

2 1 5 Steps To Creating Cash Flow Through Property By Faz Ullah

3 2 I am going to share with you how you can build a property portfolio using other people s time, money, knowledge and expertise if you choose to continue on this journey with me and my team. Property is one of the best investments you can make; and this is also the greatest opportunity that we are going to see in our life-time to buy property, as long as you know what you are doing. The results that you can achieve are incredible. Investing time and effort in your own education and personal development is the best investment you will ever make. The knowledge and skills you gain through education will stay with you for the rest of your life. The main attraction of investing in property is the ability to invest using other people s money, and the significant capital gain you can make as your property rises in value over the long term. I have shared an example with what is possible at the end of this report.

4 3 Step One: Buy Property Below Market Value By purchasing below market value you lock in profit from motivated sellers. There are three main questions that arise from this: 1. Why would anyone sell you there property below market value? 2. What is motivated seller? 3. How do you find a motivated Seller? In a traditional property purchase, sometimes this can take two or three months. A motivated seller is someone who needs the cash now or within a few weeks. For some of these motivated sellers speed and reliability of the sale is more important than the actual amount of cash they generate from the sale. If you re able to assist these people to get the cash they need in the time that they need it, they may be able to sell you there property for less than it s worth.

5 4 You need to assess the situation the seller is in, understand their position and offer a solution to assist them. Whilst there are many reasons why sellers may be motivated to sell below the true market value, here are the top 3; repossession, split couple, financial difficulties. There will be around three or four people out of every 100 people selling their property that will be motivated enough to give you the kind of discount you want. There are motivated sellers everywhere; all you have to do is get good at finding them. There are many different ways of finding motivated sellers, and the top three is; Estate agents, leaflets and local newspaper advertising.

6 5 Does The Figure's Make Sense: I usually ask myself the following questions to determine this; 1. Work out how much the mortgage is going to be? 2. Establish actual rent, assisting me to calculate the gross cash flow? 3. Calculate the lenders rental criteria by 130%, to ensure the rent covers the mortgage by the relevant margin? If the property does not stack up, I will usually move onto the next one without wasting anytime. If it looks like it does stack up well, it may be worth spending a little more time to work out the nett yield and return on investment. I will then take into account the management operating expenses, to calculate the true cash flow.

7 6 Step Two: (Property Sourcing) Property Sourcing is about finding deals, with a discount of 25%+, packaging them up and selling them onto other investors. There are many reasons why you may choose to implement this strategy, you may use this strategy and build yourself a cash buffer to use as deposits for building your own property portfolio. Whilst you are doing the marketing and are good at getting deals, there may be deals that are not part of your strategy, so you decide to sell these deals to other investors. You may also get too many, and you can t do them all, or you may simply set this process up as a business to generate cash. Whatever your goals, you can achieve great cash flow by following this Business model.

8 7 To make just $5,000 a month, You would need to sell two deals a month, providing you were selling your deals at $2500 each. However you can sell them for anything up to $5000 exch. In order to do this successfully, it would make sense to educate yourself and I can share with you how to find and secure the deals. I can also show you how to negotiate the deal direct with the vendor, and then I can show you how to package up the deal, sell the deal on to another investor and get paid.

9 8 Step Three: Buy and Hold for the long term. This is my favourite strategy and approach, I feel that buying and holding long term is where the real profit is made, as this is where you benefit from significant capital growth. If your property is rented out creating positive cash flow and you plan to hold for the long term, it doesn t matter what happens in the market for short term price fluctuations. As the trend for property prices will only go in one direction, and that is up, as demand is greater than supply.

10 9 Step Four: Buy to sell Strategy- Flipping- This is a great strategy for raising cash quickly, the ideal scenario is to buy properties with huge discounts 25% + and then sell to first-time buyers. Whilst sourcing properties, if you come across properties that are not suitable to rent out or not in a great location. Rather than walk away from the deal, it may be possible to buy the property at the discounted rate and sell it on at a higher price for a cash profit.

11 10 Step Five: Boost your Cash flow with Multi-lets One of the best ways to get Cash flow from your property is to rent it out room by room on a multi-let basis. If you rent out individual rooms, the combined rent will be much higher than the rent achieved if you rent the property to a family. When sourcing these types of properties it is important that the property has 5 rooms, with the split being 3 bedrooms and 2 reception rooms. This would enable you to either make this into 4 or 5 rental units, and many of mine achieve an average rent of 400 per room, this makes the total income of the property After taking out the cost of bills which is usually 400, the rental Income I achieve is 1600.

12 11 This compares with 800 on a single AST contract. If you take out the cost of the mortgage I average between in positive cash flow from each of my properties. How many of these would you need to replace your income? Just 3 would be more than enough for most people to be financially independent. Also if you are operating an HMO property which requires mandatory licensing, you would need to contact your local council to obtain a licence. The process is very simple. HMO stands for Houses of Multiple Occupation. Licensing is a requirement if the property has 5 or more tenants or is 3 floors and higher. To further your training and accelerate you re Success; Please go to: Many thanks You re Partner in Wealth and Success!!! Faz Ullah