What is a property investment deal? Since no two investors ever see the same opportunity quite the same way, there is no clear way to define a 'good' deal or a 'bad' deal.
One investor will see yields, rent, annual growth, compound interest and return on investment as the most important thing. Another will see opportunity only in properties that require a refurb. Another will need significant development opportunity and a way to increase the rental return. Another will see a vendor with a problem and an opportunity to solve the vendors problem using her negotiating skills.
So the first step in setting yourself up to avoid bad deals, is to figure out what why you are investing in property. Are you looking to build a pension pot? Is short term trading more important because you need the cashflow now? Are you interested in using alternative strategies like lease options?
Now spend some time figuring out which deals would help you achieve your goals. For example, if you want a long term stable pension pot of properties, then it would be wise to have them all close to each other and easy to manage.
Next, figure out what you can afford. This may involve speaking with a mortgage broker – use our finance contacts from the 'services' tab above if you would like to speak with someone reliable.
Now you can start looking for properties. The important thing for property investors to remember is this: we are not looking for properties. We are looking for people with problems we can solve. There are many examples:
– sellers facing imminent repossessioning
– an inherited property requiring a quick sale
– a property requiring significant improvement and the seller does not have the funds to do the development
Once you have found a seller with a property problem, you can start to think about all the different strategies that can be employed to help them. In the resources section of this site you will hundreds of videos, and over 100,000 articles to help you learn how to apply all the best strategies out there.
What property investors really need is not a property 'deal' but opportunities to solve the problems of vendors in trouble. Opportunities to use our skills of negotiation, leverage, financial engineering, people and local knowledge to add value and help somebody with a problem.
This is why we developed our Deals Detective automated deal sourcing software to look for over 50,000 opportunities for investors to figure out solutions to property problems. There are hundreds millions of pounds worth of properties on the system where vendors are just waiting for someone like you to come along and help solve their problem.