On this page you will learn all about how to buy below market value property consistently. Yes, we know you probably know that you need to be buying properties as cheaply as possible. .
But do you know how to do it!
Well, that is what we are about to discover and along with that we will discover two GOLDEN RULES that make it all happen.
A goal of this web page is to try and convince you to allow these golden rules to govern your property purchases, because if they do, you will already be half way towards making your fortune from property. And buying below market value property consistently.
|If you can base the core of your investment strategy around these rules, it will be almost impossible for you to lose out in the long run, in this business.|
These rules are rules that everyone knows and many people pay lip service to, but only the ones that truly live by them live a virtually risk free property investing life.
What it the first Golden Rule?
Well you know it already.
The second Golden Rule is.
There are many more scenarios where someone might be a motivated seller but these are some of the more common ones. These are people that you can sometimes buy below market value property from, because they need a quick sale, or for some other personal reason. Whether you are property investing or developing, these people need to be your bread and butter.
Now, you might have heard it said that property investors make money out of other people’s misery. How could you buy a property for below market value from a grieving family who have just lost a close family member?
Well the answer to this is simple. As a professional who makes money from property, you provide a service and people either choose to use it or not. And if they do choose to use it there is probably a very good reason for it.
People who are going through a divorce but are still living with their partner, and are at each others throats constantly and their whole life is being ruined because they have to live in the same house as this person they may detest.
Do you really think people in this situation want to wait four months or so from start to finish for their house to complete a normal sale. No they don’t. They just want to get the money out the house and move on with their lives as quickly as possible.
So if someone comes a long and offers them twenty five percent below market value for their property but is able to complete in three weeks. Then to a certain percentage of these people your offer may look very attractive.
When buying below market value property you need to really focus on catering to the sellers needs.
Too many people money isn’t the number one priority in a sale, speed or some other factor is. You need to find out what is their motivation for selling and then try and cater to that.
Create WIN, WIN Situations.
Keep in mind in this situation that this couple may have bought their Property in 1997 for £100,000 and it is now worth £220,000 so the fact that you are going to be buying it off them for £165,000 may seem Like a huge discount on the actual market value of the property, but the couple still remember how much they bought it for and so may not be unhappy with the fact that they are getting £65,000 more than they paid for it.
After all, if they had been renting all that time it would have been dead money. So don’t assume the seller will see your offer as a bad one.
This is a similar situation to if a close relative has died and has property that they have left in their will to other family members or friends.
What people want at this time is a quick sale and to get on with the grieving process or their lives. Especially, if the home owner that died didn’t have insurance that pays off the property in the event of their death, therefore leaving the grieving relatives to find out that on top of the cost of the funeral they now have another mortgage to pay.
This can be financially disastrous for some people and it only takes a couple of months of paying an extra mortgage to totally wipe some people out to the stage that they take years, if ever, to recover financially.
So, in this scenario are you really the bad guy? I wouldn’t say so. You are providing a specialist service in that you can complete on a property a lot quicker and with a lot less hassle than the average home buyer. Now you do run a business so you need to make sure it is profitable for you hence you hardly ever (if ever) buy properties at their full market value. Instead you buy below market value property. This is what you do.
You wouldn’t be in business for very long if you offered full market value on all the properties you buy, in fact you probably wouldn’t even get off the ground in the first place, unless you had big pockets to begin with. The sellers know that.
If the seller didn’t want to sell to you do you think he would? If they could afford to wait around for the highest bidder to come along, then they would.
So, from now on think of yourself as a problem solver, people do business with you when they need a problem solving. Normally this problem would take the form of a property they need to sell quickly. or a property that is in such bad condition that they can’t find anyone else that will buy it.
Ingrain it into your mind and soul that you are a helper and problem solver and you seek out people that need the specialist service you provide and you create WIN WIN situations that benefit both of you.
This way you have a clear conscience that when you purchase below market value property, that you aren’t ripping someone off. Some times you are the only hope someone has of not being repossessed or something similar. So be proud of what you do.**Nothing on this website should be confused with financial or legal advice. If you need this, or any other type of advice, please seek the help of a competent professional. In addition, because real estate laws change all the time and differ from state to state, and even city to city in the same state, everything in these pages should be considered general marketing advice and ideas. Please see link to full Disclaimer at the bottom of this page.