Key content of this blog: no money down deals, no cash deals, smart property strategies, joint ventures, deal sourcing, property finding, finding & selling deals, deal making, bridging loans, flipping, options.
NO MONEY PROPERTY INVESTING
A lot of people will think you are a trickster, dodgy of even dishonest if you tell them they can get into property – they can even buy a property – without having any of their own money.
I guess that is all to do with society conditioning. From a very early age, we learn that certain things carry a big ticket price and the only way to get them is to have a big bank account.
That understanding is true for most big ticket items such as a Rolex, a Ferrari or a race horse.
HOWEVER, PROPERTY IS DIFFERENT THANKS TO GEARING – THE ABILITY TO BORROW MONEY TO INVEST IN PROPERTY.
That ability to borrow opens up opportunities not available with big ticket items where borrowing to buy is normally out of the question.
You can be involved in property in two main ways. You can employ property strategies which:
· Don’t involve acquiring a property or
· Do involve acquiring a property
It is possible to follow both routes without having a penny in your pocket at the start.
Strategies where no property is bought
A simple and accessible way to start off in property without any money is ‘deal sourcing’. This is a fancy term which means nothing more than finding a property that someone wants in return for a fee.
It really is something anyone can do once they put in a bit of effort. It is not something incredibly complex where you need great knowledge, experience or skill.
At the most basic level, it is about keeping your eyes and ears open. If you socialise with people a lot, you are in strong position to listen for or sniff out opportunities.
You can come across a property opportunity at any number of social situations, such as: pub, bar, restaurant, workplace, church, party, wedding or funeral.
You may hear that A is planning to sell a house, and will take a hit on the price in return for a quick sale. By making enquiries you find out that B is a property investor, is always looking out for a bargain and can buy quickly.
By talking separately to A and B you can establish what works for both of them in terms of price. Once you have that, you have your first deal. Put everything in writing to protect yourself. If you feel that things may go wrong, engage a professional adviser.
You will charge a fee to B for your service. How much you charge will depend on the bargain or value you give to B. You may even be able to charge a fee to A. You have after all saved them from paying estate agent fees which can be anything from 0.75% to 3% (plus VAT) of the agreed selling price.
If you can do say 10 deals a year at £2,000 per deal that will gross you £20,000 – more than enough for a deposit to put towards the purchase of a property in many parts of the country.
There are several other mainstream ways you could earn money from property without needing to buy a property including:
· Cleaning, painting or decorating properties
· Flat pack furniture assembling
· Viewing properties for buyers who live abroad or a long way from the property
· Checking in and checking out tenants on behalf of landlords
· Carrying out snagging inspections in respect of new build properties. (Professional agents can charge upwards of £300 [plus VAT] per inspection.)
Strategies where property is bought
There are several no money down ways to buy a property. In a short blog there is a limit to the amount of detail I can go into, however possibilities include:
· A no-option-fee option to purchase, funded by a bridging loan or a joint venture partner, followed by a re-mortgage
· A purchase, refurbishment and re-mortgage where the purchase loan covers all funding and costs, because the bargain is such a good one
· A same day purchase and re-mortgage using a bridging loan, third party funds or joint venture funding, for instance where the property is being sold at a discount
· A delayed completion purchase, preceded by building or other works or input carried out as a contribution to the deal
· Obtaining a full or joint ownership share in return for non-money consideration such as building works.
THERE ARE MANY VARIETIES OF THE ABOVE, BASED ON THE LIMITLESS FLEXIBILITY OF OPTIONS, BRIDGING LOANS AND JOINT VENTURE AGREEMENTS.
The basic way to own a property without any of your own money is to find a property deal with enough profit for you and someone you can persuade to fund the purchase on a joint venture basis.
Basically you negotiate a share of the property in return for finding, negotiating or packaging a bargain for your joint venture partner. Such a deal can be made even more lucrative if you can leverage profits/gains by adding value to the property by strategies such as:
· Title splitting
· Change of use
· Conversion into multiple units
· Lease extension
· Purchase of freehold
It would be wrong to give the impression that these strategies are simple, easy to find and easy to perform; occasionally they can be, but usually they are not. Time input, application and some money for education, training or advice is usually unavoidable
To benefit you need to grow your knowledge by extensive reading and studying, listening to podcasts and watching high quality YouTube property videos. You can also attend suitable courses and webinars.
Finding a trustworthy and experienced property partner is especially useful, as is retaining a property coach or other professional such as a lawyer, an independent financial adviser or an accountant.
It is best practice to have a property accountability partner.
Before entering any agreement affecting property it is highly advisable to seek the assistance of a suitable expert. Any agreement involving a significant amount of money should be in writing.
OWNING PART OR THE WHOLE OF A PROPERTY WITHOUT INPUTTING ANY MONEY SEEMS FANCIFUL.
However, if you are prepared to spend the time and effort to learn and apply the property models which can make that happen, you will be taking a giant stepping to achieving a mythical NO MONEY DOWN DEAL.
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Please watch out for my blog ‘An Insider’s Look at Options’ – due out in the next 2/3 weeks.
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Rebel Property Coach
My website is: www.rebelpropertycoach.com
Categories: Next level