02:05
Faizan
One of the keys to making real money with investment properties is finding and buying properties for below their market value. What makes Property Investment so great is that unlike other forms of investment, where you can only make money by selling, when you purchase an investment property you can make thousands of pounds at the time of buying the property. The key is to find quality homes that have owners who are willing to sell for below its market value.
Although the market value of a property is objectively determined by people not emotionally involved in the transaction, there are various emotional reasons someone will sell their property to below its market value. Owners in distress, for example, are often the most flexible when it comes to the price that they are willing to sell because the distress of continued ownership is too much to bear. These sellers are not necessary people who are filing for bankruptcy, but are more likely to be someone who has been fired from their job and has struggled to find another job or a couple who are in the middle of a divorce and need to sell the family home. For these owners the ultimate goal is to raise cash quickly and rid themselves of the financial burden that has become their home.
Out-of-Towners also tend to be willing to sell their property below market value. Out-of-towners are investment property owners who are far removed from their property investments. Their properties could be in the city, or if their circumstances have changed enough, their investment properties could be in a different country. Trying to manage a property from a considerable geographic distance can be difficult, and spending the money to acquire professional management doesn't always alleviate the situation. This is especially true for small scale investors who only own a property or two; they would much prefer to sell their old properties so that they can use the money to invest in buying homes closer to them.
A third prospect is frustrated landlords. These are people who thought being a property investor would be fun and easy but quickly discovered the opposite. They tend to be people who were looking to make money quickly but instead found a hard yet rewarding lifelong business opportunity and now they want out. Frustrated landlords are usually more than willing to sell below market value, just so they can get away from their tenants.
Although the market value of a property is objectively determined by people not emotionally involved in the transaction, there are various emotional reasons someone will sell their property to below its market value. Owners in distress, for example, are often the most flexible when it comes to the price that they are willing to sell because the distress of continued ownership is too much to bear. These sellers are not necessary people who are filing for bankruptcy, but are more likely to be someone who has been fired from their job and has struggled to find another job or a couple who are in the middle of a divorce and need to sell the family home. For these owners the ultimate goal is to raise cash quickly and rid themselves of the financial burden that has become their home.
Out-of-Towners also tend to be willing to sell their property below market value. Out-of-towners are investment property owners who are far removed from their property investments. Their properties could be in the city, or if their circumstances have changed enough, their investment properties could be in a different country. Trying to manage a property from a considerable geographic distance can be difficult, and spending the money to acquire professional management doesn't always alleviate the situation. This is especially true for small scale investors who only own a property or two; they would much prefer to sell their old properties so that they can use the money to invest in buying homes closer to them.
A third prospect is frustrated landlords. These are people who thought being a property investor would be fun and easy but quickly discovered the opposite. They tend to be people who were looking to make money quickly but instead found a hard yet rewarding lifelong business opportunity and now they want out. Frustrated landlords are usually more than willing to sell below market value, just so they can get away from their tenants.
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