course overview
CREATIVE STRATEGIES IN PROPERTY INVESTMENTS
STRATEGY1- DEAL SOURCING
So you may have heard people in the property forums yelling about how much money they have just made by selling a BMV (Below Market Value) deal or how they have just secured a property 25% BMV.
When I heard about this concept prior to being in property my ears pricked up and the thought of earning £5,000 per deal was very appealing.
SO WHAT IS DEAL SOURCING?
In the simplest form: 1. You send out marketing to find people who need to sell their house fast due to their current circumstances;
2. You agree a purchase price for their property which is at least 20% less than the current market value;
3. You find an investor who buys property in that area and is in the market to buy an investment property;
4. You give the investor the deal and he/she completes on the sale and takes ownership of the property;
5. The investor pays you a finder’s fee for the deal normally between £3,000 -£10,000.
6. Repeat. It really is as simple as that….MAKE IT EASY BY STARTING SOURCING
LEASE OPTIONS
definition
A lease option is a written agreement in which an owner allows a person to use a property in exchange for rent, and also gives that person the right to buy the property for a specified price within a specified period. You agreed the price now for the future.
BENEFITS OF LEASE OPTION:
1. RENTAL CASH FLOW 2. CAPITAL APPRECIATION 3. INSTANT EQUITY
4. EXCHANGE WITH LITTLE OR £1
5. YOU CAN SELL OR EXERCISE YOUR RIGHT OF PURCHASE AT ANY TIME.
6. NO MORTGAGE NEEDED
7. BAD CREDIT ACCEPTED
8. NO DEPOSIT REQUIRED
9. YOU CAN LIVE IN THE PROPERTY
RENT TO RENT (MULTI-LET)
What is rent to rent?
Rent to Rent is where an individual or a company rents a particular property from landlords where the Landlord receives a fixed guaranteed rent. Then the company or individual rent the property out room by room with the permission of the landlord and adequate licence or approval from the council.