Find people who are motivated to sell their property,
who are wiling to be flexible with their asking
price and who are prepared to sell the property
below market value.
i.e. At a value lower than the open market value.
These people are not that difficult to find if
you know where to look and understand how to structure
a deal in order to help them whilst making a healthy
profit for your efforts.
are many reasons why people are motivated / desperate
/ need to sell property.
to raise finance quickly to fund other purchases.
accumulated a lot of debt and are unable to meet
their obligations and so face repossession
inherited a property and have no idea what to
do with it
Costly refurbishment or no intention of improving
the condition of it so would prefer to just sell
going through divorce and need to split up the
emigrating abroad or moving up the property chain
and the only thing stopping them is their current
property taking too long to sell.
bought property as an investment but are facing
a negative cashflow situation due to void periods
or interest rate increases.
the investment property to help solve the property
owner's problem for an agreed price that is below
market value, say at a 15-30+% discount, using
any or a combination of the following financing
cash in the bank or from Private Investors and
Joint Venture Partners
buy to let mortgages
0% credit cards
Secured or unsecured loans
equity in an existing property
builders’ discounts etc
&) Refinance the property at its actual open
This was a very viable and profitable way of doing
business when same day purchase and re-mortgage
was available. Many lenders now insist that property
is owned for at least 6 months before they allow
any approach for remortgage.
purchasing any property with a view to raising
capital by refinancing at a later stage make sure
that the property will generate a positive cashflow
from rental yield and it will be self sustaining
throughout the time you own the property.
this method will repay the original lender and
extract the initial monies paid. If done correctly,
and depending on the financial economy, it is
possible to walk away with tax-free cash lump
sum and a cashflow positive passive income via
from SOMEONE ELSES MONEY!