Practical Advice To Help You Profit From Rental Property
10 Tips On How To Find Bargain Properties
If you want to succeed more quickly in the property business, you must pay less than the full market price for your
buy-to-let properties. If you buy bargain properties cheaply this allows you to buy properties using less of your
own money. This means you can buy more properties using your available capital. It also means you have made an instant profit before you
have even done any improvement work on the house.
To get a property at a bargain price you must only deal with
people who are desperate to sell. These are the only people who will sell well below the market value because they
need, for their own personal reasons, to achieve a quick sale. Do not try to get to get really cheap deals from those who
are not desperate to sell their properties because they can simply wait for a better offer.
Finding bargain properties is all about building up a network of people who come across sellers who
are really keen to sell; people who will call you as soon as they learn about someone needing a quick sale of
their property.
The real question is not 'how do I find a bargain property?', but, 'how do I find a property owner who is
desperate to sell?'
Anyone who comes across a property seller in their day-to-day business may know if the seller is desperate to sell. So
you must make yourself known to these people as someone who is looking to 'solve the sellers problem' i.e. buy
their property quickly. The trade-off for the seller is that the price paid is below market value.
So, the essense of buying a bargain-priced
property is this... Firstly, consider all the many reasons why someone may be desperate to sell.
Secondly, build relationships with those in the community who may know about these reasons through their business or
day-to-day contacts will the seller and could pass the information on to you... perhaps for a financial benefit to themselves.
Thirdly, look for indications yourself of someone who is desperate to sell.
Some reasons or circumstances where the houseowner may or need to sell quickly:
People who may know of the sellers circumstances:
- Local Estate agents
- Local Letting Agents
- Anybody involved in the building trade
- Surveyors
- Mortgage brokers
- Your local postman/post lady
- Local busy bodies (usually old 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.
- Local property dealers - Also paid a finders fee.
- Solicitors - probate etc.
- Accountants will know of clients that may be in financial trouble.
- Doctors - Patient dies and you get wind of the house before it is placed on the market.
- Your hairdresser - he/she will always spend a lot of gossiping with customers so make sure you 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
storeowners will let you stick up one of your business cards on the window or
door.
Some indicators that the seller may be desperate to sell
Properties sold through auction.
Repossessed properties.
Dual agency properties (properties for sale with more than 1 agent).
Property owners that have reduced the price of their home to achieve a quick sale.
Properties that are languishing on the market (4 months or more).