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A simple guide to bmv investing 2012

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A simple guide to bmv investing 2012

  1. 1. Like our Facebook page @ Property Xpress PROPERTY AQUISITION ISN Horizon Limited, 60 Cannon Street, London EC4N 6JP Tel: 0844 4106068 Fax: 0844 4106069 A Simple Guide to Sourcing/Buying Properties Below the Market Value ISN Horizon Limited, 60 Cannon Street, London EC4N 6JP Tel: 0844 4106068 Fax: 0844 4106069. www.isnhorizon.com
  2. 2. Like our Facebook page @ Property Xpress A Simple Guide to Sourcing/Buying Properties Below the Market Value Content A winners mindset 1 Knowing your Market 2 Below Market Value (BMV) a brief 3 Launching out 4 Tell them what you do 5 Handling Enquiries 6 Evaluating a deal 7 Visiting potential sellers 8 Instructing your team 9 Useful Resources 10 ISN Horizon Limited, 60 Cannon Street, London EC4N 6JP Tel: 0844 4106068 Fax: 0844 4106069. www.isnhorizon.com
  3. 3. Like our Facebook page @ Property Xpress A Simple Guide to Sourcing/Buying Properties Below the Market Value 1. A winner’s mindset Firstly, I will like to start this guide by congratulating you for taking the first step towards achieving financial freedom through property… But as with anything one sets out to do you need to make sure you get the foundation right, if this is set up properly you will have the ability to perceive what you wish regardless of the challenges you face. You also need to understand the human mentality and why we reason the way we do. I am sure you will agree with me on the importance of these fundamentals. Let‟s review the quotes below “Perception is Reality” & "If you think you can or you think you cant, you will ALWAYS be right." -- Henry Ford I have come to realise during the time of my being in business that a major part of your success depends on how you perceive things, if asked to run the most successful business in the world and you do not have the right attitude you can be rest assured of failure. You need to have a positive view of whatever you embark on without setting limitations for yourself. ISN Horizon Limited, 60 Cannon Street, London EC4N 6JP Tel: 0844 4106068 Fax: 0844 4106069. www.isnhorizon.com
  4. 4. Like our Facebook page @ Property Xpress A Simple Guide to Sourcing/Buying Properties Below the Market Value Most people will read this guide and say to themselves this cannot be true, it just cannot happen……… and guess what they are right, their minds automatically shuts down at that point and they will never succeed in reasoning this through, they end up going back to Tesco to earn £6.50 per hour, don‟t get me wrong I see no problem in people working at that level but why do they have to do it when all the resources and information to be WEALTHY is available to them? “PERCEPTION” another set of people will read this guide and Say to themselves…… I can do this…….it sounds simple and if anyone has ever succeeded doing this I can succeed as well, and guess what they are right as well... at that point their mind goes on auto drive and automatically begins to search for opportunities and ways to execute their plans and succeed. The same question pops up again….why do these set of people go to that extent with the same information that the first set of people received? Simple answer…. “PERCEPTION” The first set have perceived this is impossible and the second set has perceived this is possible and the irony is that they both have stumbled into the same information the outcome in both cases is their “REALITY”. This is a very successful venture, tried and proven by myself and has helped me create substantial WEALTH over the last couple of years and it‟s so simple that anyone can do it and succeed. This step by step guide has been written in the simplest format possible to ensure you understand and achieve the best of results. Let your winning Perception be your Reality………… To your success Richard Obahor Group Director ISN Horizon Ltd ISN Horizon Limited, 60 Cannon Street, London EC4N 6JP Tel: 0844 4106068 Fax: 0844 4106069. www.isnhorizon.com
  5. 5. Like our Facebook page @ Property Xpress A Simple Guide to Sourcing/Buying Properties Below the Market Value 2. Knowing your Market A sure-fire way of achieving success in anything you embark upon is to ask as many questions as can be asked and research as much as can be researched, having a comprehensive understanding of the Market you intend to go into will enhance your decision making skills which will come in handy as you progress in your career as a property investor. Why Property? This is probably going to be the only complex part of this guide, but I will try and make it as simple as possible………..Property has always been and is still the best performing investment out of all the investment vehicles….and I will give you at least 5 REASONS why I have arrived at that conclusion. 1. Property gives you the ability to leverage Since 1957 property prices have increased at an average of 11.3% a year (source: land registry). But I will show you that despite growing at pretty much the same rate as the stock market, investing in property would have produced several times the returns the stock market would have produced. Essentially, property works the same way as any share investing - Compound Capital Growth…This is such a powerful concept that Albert Einstein called it “the greatest discovery in the universe”. This can be shown clearly in this famous example….. ISN Horizon Limited, 60 Cannon Street, London EC4N 6JP Tel: 0844 4106068 Fax: 0844 4106069. www.isnhorizon.com
  6. 6. Like our Facebook page @ Property Xpress A Simple Guide to Sourcing/Buying Properties Below the Market Value “The sale of New York” In 1626, the Dutch West India Company bought the island of Manhattan from the Canarsee Indians for the equivalent of $24. Invested at 8% compound growth that $24 would now be worth several trillion dollars – enough to buy back the whole of Manhattan several times. The important difference between property and other forms of investment is the ability to leverage……. If you invest £15,000 in shares you are buying assets worth £15,000. If you achieve 10% growth in your first year, your profit is £1,500. On the other hand, if you put the same amount of money into property, typically you would use that £15,000 as a deposit to purchase a property worth, say £100,000 and borrow £85,000 from the bank, by way of a mortgage. You now have an asset worth £100,000 working for you. If you achieve 10% increase in value of your asset over the next year you will have made £10,000 – that‟s £8,500 more than your shares investment. The ability to borrow money to purchase an investment is known as “LEVERAGING”. ISN Horizon Limited, 60 Cannon Street, London EC4N 6JP Tel: 0844 4106068 Fax: 0844 4106069. www.isnhorizon.com
  7. 7. Like our Facebook page @ Property Xpress A Simple Guide to Sourcing/Buying Properties Below the Market Value 2. Security The fact that the banks will lend you money to invest in property but will not readily lend you money specifically to invest in shares or other investments shows you that the banks assess property to be a very secure asset amongst the others. Regardless of the doomsayers and what is happening in the market now, long term, the banks acknowledge that the underlying market pressures of supply and demand mean that property prices will continue to rise and their money is protected. Trends such as increasing migration, higher divorce rates, fewer marriages, etc. mean that there is an ever increasing need for more houses. The government estimates an extra 240,000 properties will have to be built each year to keep pace with demand. The construction industry is only building 180,000, meaning, each year, the shortage of supply increases by 60,000. This has an upward pressure on prices and most experts predict the pattern of prices doubling every 7-10 years is likely to continue. But what about a crash in house prices? The press love stories about an imminent house price crash. Such headlines sell newspapers and hence will appear regularly. Remember we talked about “PERCEPTION” Look beyond the headlines to the real long term statistics and you will realise that a property bought at the height of the market in 1989, before the “crash” of the early nineties (where prices fell by less than 10%), is now worth 3-4 times its value then. There really is very little need to fear a crash. ISN Horizon Limited, 60 Cannon Street, London EC4N 6JP Tel: 0844 4106068 Fax: 0844 4106069. www.isnhorizon.com
  8. 8. Like our Facebook page @ Property Xpress A Simple Guide to Sourcing/Buying Properties Below the Market Value 3. The ability to make INSTANT PROFITS If you buy a property worth £100,000 there are many ways you can instantly increase the value of the property… putting a new kitchen,bathroom or a quick cosmetic refurb can shoot the value of the property up instantly, also If you buy sensibly, which is the whole essence of this guide, at below the true market value, it may be worth £130,000 or even more….. You can sell immediately making shed loads of CASH. Property investment therefore enables you to get an instant return on your investment. 4. Stability The prices of other investments such as shares can collapse in a few hours, and managing such investments most times require constant attention, but because of its illiquid nature, property prices are unlikely to drop more than a few of percent a month. It is also a fact that accommodation is an essential part of peoples lives, If prices start to fall, fewer people choose to sell. Thus supply quickly reduces and demand stabilises prices. Over all the property market is very stable. Provided your property is being managed, you could take a 12 month cruise and in all likelihood, when you come back, nothing much will have changed. This is highly appealing for the part time investor. ISN Horizon Limited, 60 Cannon Street, London EC4N 6JP Tel: 0844 4106068 Fax: 0844 4106069. www.isnhorizon.com
  9. 9. Like our Facebook page @ Property Xpress A Simple Guide to Sourcing/Buying Properties Below the Market Value 5. You can release CAPITAL but still keep the investment working Lets take for instance, you have made a profit of £100,000 from your stock trading. If you want to release your capital gain, the only way you can do this will be to sell part or all of your shares. Either way, you will face capital gains liability and lose the value of the shares you sell. At that point your share investment ceases to work for you. On the contrary, with property, you do not have to sell your asset to access your gains, you are able to refinance the property (REMORTGAGE), thus releasing capital. That way, your asset continues to work for you both in terms of growth and income. In conclusion, there are many other reasons why property is my best bet but I have chosen the basics to give you a clear understanding of the dynamics of this market and help you make an informed decision…..I am sure at this point you are convinced that this is the simplest and safest way to achieve FINANCIAL FREEDOM. ISN Horizon Limited, 60 Cannon Street, London EC4N 6JP Tel: 0844 4106068 Fax: 0844 4106069. www.isnhorizon.com
  10. 10. Like our Facebook page @ Property Xpress A Simple Guide to Sourcing/Buying Properties Below the Market Value 3. Below Market Value (BMV) a brief I get asked by pretty much everybody I speak to about buying properties “Below Market Value” (BMV) the same question…….. “Why is anyone going to sell their property less than the True Market Value and make a significant loss?” This is quite simple and I will explain the rationale behind this…… Property because of its illiquid nature normally takes longer to turn into CASH. The average property sale process takes around 2-4 months, and people for numerous reasons cannot afford to wait that long to sell their house. I‟ll start with the most common reason that makes people “motivated” (A term commonly used in the industry) to sell their property in a very short time….. Repossession You think about it from this perspective… If you bought a property around 10 years ago for £40,000, the property is now worth around £100,000. You owe, let‟s say £30,000 and for some reason such as loss of employment you have fallen behind on your mortgage payments, your lenders are threatening to repossess the property and make you homeless, they have given you an eviction date in 4 weeks. ISN Horizon Limited, 60 Cannon Street, London EC4N 6JP Tel: 0844 4106068 Fax: 0844 4106069. www.isnhorizon.com
  11. 11. Like our Facebook page @ Property Xpress A Simple Guide to Sourcing/Buying Properties Below the Market Value Just as you are considering your woes, you receive a leaflet from a company offering to buy your property from you for £75,000 (75% of the Market Value), they claim they can close the transaction in 3 weeks, and even offer to rent the property back to you at an agreed rent. If you sell to this company and rent the property back from them, you will not have to move home, you can keep your children in the same school and most importantly, you would pocket £45,000 and this CASH will be available to you in 3 weeks. What would you do?……………… would you accept their offer?............ You probably would…….. The reality is that I deal with people in such situations on a daily basis and they are willing to sell their property for even less than the example I used because of their level of MOTIVATION. Relocation Again I will like you to think about it from this perspective… Your property is worth £100,000 and you owe around £30,000. You have just been offered a good job in Spain and you plan to relocate your family to start a new life over there, you have set a deadline for the move for the end of the month because the kids have to start their new school next month. Your property is on the market but you are not getting that elusive buyer due to the fact that your property needs some repairs and the works required cannot be done because of your time constraint. ISN Horizon Limited, 60 Cannon Street, London EC4N 6JP Tel: 0844 4106068 Fax: 0844 4106069. www.isnhorizon.com
  12. 12. Like our Facebook page @ Property Xpress A Simple Guide to Sourcing/Buying Properties Below the Market Value You are obviously under PRESSURE, you receive a leaflet from a company offering to buy your house for £75,000, and they have said they will be happy to purchase your property regardless of its condition, they can close the transaction in 3 weeks suiting your timeframe and they even offer to pay your solicitors fees…………Would you accept their offer?……….. You probably would……… And that‟s because you are motivated. Inherited Property We also get cases where people have inherited properties that require a lot of work doing to it and they just do not have the time and resources to carry out these works, they are more inclined to accept an offer below the true market value because there is a trade off between hassle, time and money. The reasons I have given why people sell their properties for less than the true market value is in-exhaustive, but understanding their mindset will help you think about loads more reasons and help you judge the level of their motivation. The key to all of this is to use the discounts you get from the vendor to cover your “deposits” that the banks will normally require, effectively allowing you to buy property without any CASH-IN from you. An economic slow-down should not be Doom & Gloom for us investors, it should be, from my “Perception” a tool with which to negotiate bigger discounts from sellers as the market gets flooded with a glut of “Motivated” sellers. ISN Horizon Limited, 60 Cannon Street, London EC4N 6JP Tel: 0844 4106068 Fax: 0844 4106069. www.isnhorizon.com
  13. 13. Like our Facebook page @ Property Xpress A Simple Guide to Sourcing/Buying Properties Below the Market Value 4. Launching out I am sure at this point you are saying, this sounds interesting but you are probably bracing yourself for an answer to the key question….. How much is this all going to cost me to set up? The one thing that attracted me to this business was its “simplicity” and its very low set-up cost. You would need less than £600 pounds to start and this is for your marketing materials, I‟ll break this down further: 1. 20,000 A5 sized, £210.00 2. A free-phone number (0800) (one-off) set-up fee £5.00 3. A website (one-off) £350.00 4. A leaflet dropper (optional) 5. A good solicitor (initial set-up costs) £0.00 6. A Mortgage Broker (initial set-up costs) £0.00 ISN Horizon Limited, 60 Cannon Street, London EC4N 6JP Tel: 0844 4106068 Fax: 0844 4106069. www.isnhorizon.com
  14. 14. Like our Facebook page @ Property Xpress A Simple Guide to Sourcing/Buying Properties Below the Market Value Finding a team of Mortgage Brokers and Solicitors who can work creatively to cater for this sort of transactions as they are non-conventional might be challenging. Email and ask me about my team that I have used for several years and how to structure these transactions: robahor@isnhorizon.com I have illustrated that you will require no more £600 to set this up and most of it will go into marketing, this is amazing as it defies most business theories on returns ratios. Even if you have a failure rate of 99%, the return on your marketing investment (ROMI) is still enormous. I‟ll explain this further……. In the first month I started this business, after my marketing campaign (which cost me approximately £500) I received around 200 calls and from that 200 calls I managed to convince only 2 people to sell their property to me. This in any other business environment is a very poor result as I only achieved 1% success rate. But let‟s consider the figures for the properties I bought… Property 1 (3 Bed Semi- Detached House). Market Value £160,000 Price Paid £122,000 Instant equity in property £24,000 Cash- Back (Money in my bank) after all my costs £8,000 ISN Horizon Limited, 60 Cannon Street, London EC4N 6JP Tel: 0844 4106068 Fax: 0844 4106069. www.isnhorizon.com
  15. 15. Like our Facebook page @ Property Xpress A Simple Guide to Sourcing/Buying Properties Below the Market Value The vendor that sold this property rented it back from me and I am making £135 from the rent every month after walking away with around £8,000 right from day one. This property is now worth at the time of writing in the excess of £190,000. Property 2 (3 Bed End of Terraced House). Market Value £150,000 Price Paid £120,000 Cash- Back (Money in my bank) after all my costs £5,000 The property required a quick refurbishment and I used the £5,000 cash- back to execute this and sold the property on, making a profit of just under £20,000. So if we total the £8,000 (without considering the equity and monthly cash- flow) I made form the first property I bought and the £20,000 I made from the second property, we get £28,000. In other words my £500 spent in the first month on marketing generated £28,000 CASH. So going back to the ROMI ratio, we are looking at ….. 1 : 56 (every £1 spent generated £56) Not bad at all……and these or even better are the sort of returns you will be exposed to any time soon. ISN Horizon Limited, 60 Cannon Street, London EC4N 6JP Tel: 0844 4106068 Fax: 0844 4106069. www.isnhorizon.com
  16. 16. Like our Facebook page @ Property Xpress A Simple Guide to Sourcing/Buying Properties Below the Market Value 5. Tell them what you do The underlying factors why people will be MOTIVATED to sell their property Below Market Value does not change, in fact the slow down of the wheel that drives the economy improves these factors in our favour, the current financial condition has made people more “motivated” to sell, but they need to know who can buy their property from them at a reduced price. Your ability to put your service (Buying properties quickly) in front of them is called “MARKETING” and that‟s why most of the COST associated with this business goes into marketing. Leaflets Of my marketing mix the most effective I would say is a simple A5 sized leaflet. This has an in your face effect on the vendor as it invades their privacy, most times it delivers the whole of your message at the right time and it can hardly be missed, because its there on their doorsteps every time they go past it. I target delivering through peoples letter boxes, 2,000 leaflets a week in the area I live and I have had tremendous results from my drops. See a sample of my simple but POWERFUL leaflet. ISN Horizon Limited, 60 Cannon Street, London EC4N 6JP Tel: 0844 4106068 Fax: 0844 4106069. www.isnhorizon.com
  17. 17. ISN Horizon Limited, 60 Cannon Street, London EC4N 6JP Tel: 0844 4106068 Fax: 0844 4106069. www.isnhorizon.com
  18. 18. Like our Facebook page @ Property Xpress A Simple Guide to Sourcing/Buying Properties Below the Market Value So to get things in perspective from the 20,000 leaflets I printed initially I aim to deliver 2,000 a week. I can assure you that if you follow this pattern you will definitely get the phone ringing. The free phone (0800) number gives people the impression that you are an established company and they can get something for nothing. See http://www.numbergroup.com/products-services/telephone- numbers/freephone-0800-numbers for info on how to set-up an (0800) #. For the leaflets printing you can contact: Milan Shah Amrutprint Tel: 0208 0905040 http://www.amrutprint.co.uk/ It normally takes them a couple of days from instruction to deliver your leaflets to your doorsteps. Website My leaflet also drives potential vendors to my website as they may require more information about the services we offer to help them make up their minds. See my website http://www.help4property.com ISN Horizon Limited, 60 Cannon Street, London EC4N 6JP Tel: 0844 4106068 Fax: 0844 4106069. www.isnhorizon.com
  19. 19. Like our Facebook page @ Property Xpress A Simple Guide to Sourcing/Buying Properties Below the Market Value They can complete a simple form on my website and as they click submit this gets sent directly to my mail box. With the information I have I can determine their level of MOTIVATION. Email and ask me how to set up a website similar to mine: robahor@isnhorizon.com Newspaper Ad Also you can place a simple ad with your local news paper for around £40- £50 a week. This will get potential vendors to call you directly or visit your website, where they can leave their details for you to close the deal. See sample of ad…. SELL YOUR HOUSE FAST!!! WE PAY MORE THAN OTHER CASH BUYERS . Instant decision given . Guaranteed hassle-free sale. . Properties in any condition considered. . Repossession stopped. . Sell & Rent- Back option. . Fees free transaction. . No “For Sale” board needed . Express CASH advance. . Low cost/rent-free periods. . No HIP’s required. Up to £500 paid for successful referrals Freephone 24/7 0800 310 1400 www.help4property.com ISN Horizon Limited, 60 Cannon Street, London EC4N 6JP Tel: 0844 4106068 Fax: 0844 4106069. www.isnhorizon.com
  20. 20. Like our Facebook page @ Property Xpress A Simple Guide to Sourcing/Buying Properties Below the Market Value Word of Mouth Tell as many people as you can about what you do, ask for referrals and offer to pay them up to £500 for successful referrals, this can also prove a very successful way of getting your message around. Understanding the fundamentals of marketing is very vital to the success of every business, this is a numbers game and I believe persistence is the key. Try not to break your marketing campaigns, always keep your name fresh in the minds of your targets and this will show-off good result over time. I have gone on to buy loads of properties over the years because I was persistent in my marketing. You too can do the same………. ISN Horizon Limited, 60 Cannon Street, London EC4N 6JP Tel: 0844 4106068 Fax: 0844 4106069. www.isnhorizon.com
  21. 21. Like our Facebook page @ Property Xpress A Simple Guide to Sourcing/Buying Properties Below the Market Value 6. Handling Enquiries There are no set rules when handling enquiries, but if you practice these key techniques and apply it to your conversation it should increase your chances of getting a positive response. LEARN TO BECOME A GOOD LISTENER This helps in getting more information from the prospect BUILD RAPPORT EARLY. It is vital to put prospects at ease in order to allay their fears, its not very easy for them as they are talking to a complete stranger. ASK QUESTIONS LIKE “CAN YOU GIVE ME A BIT MORE INFORMATION ABOUT WHAT YOU’VE JUST SAID” It confirms to them that you are paying attention to what they are saying. The script below should give you a guideline how to handle your enquiries, remember you do not have to say it word for word; you can easily adapt it each time you talk to potential sellers to suit you. ISN Horizon Limited, 60 Cannon Street, London EC4N 6JP Tel: 0844 4106068 Fax: 0844 4106069. www.isnhorizon.com
  22. 22. STAGE 1.You - Hello Good morning this is Richard/xxxxx from 24hoursoffer. How can I help?Caller Possible answer – I saw your advert on …………. Or ..Somebodyreferred me to you……….You – Right. What I find very helpful in situations like these is if you tell me what you would like to achieve or get from this phone conversation.Caller Possible answer – would like to sell quickly…etc…etc…You – We are getting a lot of phone calls like these and so in order to helpyou, we will need to ask you ONE or TWO personal questions. The answerswill remain totally confidential………………... What area do you live in?Caller Possible answer – Grays, Thamesmead…etc…etcYou – („Oh yes, we have had a lot of enquiries from there lately‟) OR („ I‟m seeing someone tomorrow in that area‟) OR („ I have relatives leaving in the area‟) … Etc…. Etc…Caller Possible question – How much will you pay for my house.To give an answer to this outright on the phone is extremely high risk, asthis could PUT a potential client OFF. (In response it is advisable to beVague)You –„It depends on the house, the area, the location, the condition of thehouse, the condition of that particular market‟ etc…..etc…..,You will be indicating that you do need to see it, which is not unreasonable.Be Bold with questions asked…………..as you are only asking for professionalbusiness reasons, and not for the sake of being nosey.STAGE 2 (FIND OUT PERSONAL RELEVANT DETAILS)You – „Ok, well what I need to do now before I start to look at a suitablesolution for you, is to ask a few relevant questions. It will take oneminute that‟s all. The majority of the information, I can get online, but itmakes it quicker, and easier, if we cover it now‟Go on to say………..„If I am to buy your property off you quickly, I will be dependent on as ISN Horizon Limited, 60 Cannon Street, London EC4N 6JP Tel: 0844 4106068 Fax: 0844 4106069. www.isnhorizon.com
  23. 23. much honest information you give me at this stage‟.The questions are notaimed at „trapping‟ you and I‟m never judgemental of anyone. The answersare highly confidential, and will not be divulged to any disinterestedparties…………… We will be working closely together over the next few weeks in order to complete your sale quickly, and get at your cash for you, andtherefore I find it is essential that we are all working towards the same objective‟.You – (refer to the questionnaire and ask questions from there)At this stage you should now be able to ascertain if you have a deal or not.Caller‟s response to questions may not add-up.Scenario 2:HOWEVER IF AT THIS STAGE YOU FEEL IT IS WORTH PURSUING MORE DEEPLY.Then it is now your turn to do all the talking, outlining your services asclearly as possible but by giving as little away as you can. You are at thisstage, focused on getting a meeting with them at the house in question – assoon as possible!You – Thanks, for answering those questions really helps me to see yourfull situation. Where we like to think we differ from other property traders, is that we try to put together a package based on what you are looking for, be it a fast sale, and you move out, or a sale and rent backarrangement. It‟s a very important process for both of us, and isn‟t to be taken lightly ……hence the questions………Let me tell you a little aboutus, and how we operate, We are property traders and quite simply put, webuy and sell property – that‟s how we make our money.I‟m sure you canaccept that if we are to make money, then it‟s important that we establishwhat a truly realistic current market price is for any property that weconsider. On average, we look to make an average of around £xxx or usually£10k („adapting to suit conditions‟). This figure is what we consider areasonable return for us, in light of our risk in buying a property in a slidingmarket, which we have at present,and also it takes into account the moneythat we‟ll have tied up during the whole process, from buying it off you, toselling it on to the next owners, - this usually takes 4-6 months. You‟reprobably aware that the market locally has slipped somewhat in the lastcouple months, and that things are leveling out. I personally don‟tthink a house price crash is in sight, but, then again, who knows. I just thinkthat 2008 will see a pretty slow or sliding market around here.Everyone here has seen their house double in value in the last 3 years…..and the slump is just the market „taking a little bit of it back‟ from you.This time last year we were making offers, around 5-10% more than we canafford to do now… In the time from agreeing a purchase up to actuallygetting possession of the property – we found the price had increasedsomewhat.Unfortunately, the opposite can happen at the moment.So, the good news about dealing with us, and selling your property to us is ISN Horizon Limited, 60 Cannon Street, London EC4N 6JP Tel: 0844 4106068 Fax: 0844 4106069. www.isnhorizon.com
  24. 24. that you will have your money within 4 weeks. Unlike a traditional sale,where you wait, at best, on average, 5 months, from the sale board beingput up, to handing over your keys to the new owners of your home.With usyou have a guaranteed sale, there is no chance of the sale collapsing, ashappens in around 1 in 4 of EA(Estate Agents) type sales, owing to mortgagerefusals, change of heart, survey problems e.t.c ….. e.t.c …… We also payyour solicitors bills up to £500, and, because you deal directly with us, youwill have no EA bills either - of around £xxxx + VAT.The other side of thecoin however, and we cannot begin to pretend otherwise, is that you will,eventually, whenever that may be, receive more through an EA sale thanthrough dealing with us. It is most certainly a lot riskier, and frustratingroute for you to take though. Remember though, even through an EA youwill most definitely receive an offer less than your asking price – whichyou‟d be wise to accept in the current market conditions, and you will havethe EA and solicitors bills to pay, which will reduce your proceeds evenmore. With ourselves therefore, you get your money quickly, which meansthat you can move on sooner……….Scenario 1:Caller Possible answer – how much, % wise do you pay for property.To give an answer to this outright on the phone is extremely high risk, asthis could PUT a potential client OFF. (In response it is advisable to beVague)You –„It depends on the house, the area, the location, the condition of the house, the condition of that particular market‟ etc…..etc…..,(You will be indicating that you do need to see it which is notunreasonable.)You – „when is the best time is to call / visit you… (Get an appointment toview and then get off the phone quickly.) ISN Horizon Limited, 60 Cannon Street, London EC4N 6JP Tel: 0844 4106068 Fax: 0844 4106069. www.isnhorizon.com
  25. 25. Like our Facebook page @ Property Xpress A Simple Guide to Sourcing/Buying Properties Below the Market Value 7. Evaluating a deal Before you go off visiting your potential seller you need to prepare your self, you need to know what price you are going to offer them. Evaluating a deal, although very important to every transaction should not be a daunting task and you do not have to be a rocket scientist to figure this out. Your objective when evaluating every transaction should be: 1. To buy using little CASH. 2. To buy using NO CASH. 3. To buy getting CASH-BACK on completion. Ideally the mortgage lenders will lend up to 90% of the value of the property so this should be your start-off point, other costs to consider are 1. Finance package fees 1% of purchase price 2. Solicitors fees 1% 3. Stamp duty (if applicable) 1% So to achieve a No Money Down Deal you should be looking to negotiate at least 13% off the Market value, and anything over and above 13% should put CASH in your bank on completion. Another key question I get asked time after time is……….. ISN Horizon Limited, 60 Cannon Street, London EC4N 6JP Tel: 0844 4106068 Fax: 0844 4106069. www.isnhorizon.com
  26. 26. www.horizonhp.com/treic50 A Simple Guide to Sourcing/Buying Properties Below the Market Value How do I ascertain what the true Market Value of the property is? This is very important as most vendors tend to over value their properties when you ask them about its value.A mixture of experience, gut feeling and facts/figures is my answer to this question. There are no scientific formulas to this, for facts, look at what house prices on the same street are currently selling for, see http://www.rightmove.co.uk/ also look at what they have sold for http://www.nethouseprices.com/index.php?con=sold_prices with this information you should be able to work out the true value of a property. Once this is known, work out what percentage you wish to offer them based on their level of desperation. Experience and gut feeling also counts when analyzing a deal, a sound knowledge of the local property market will assist you when making that all important decision. Email me and ask me about our deal stacking service: robahor@isnhorizon.com ISN Horizon Limited, 60 Cannon Street, London EC4N 6JP Tel: 0844 4106068 Fax: 0844 4106069. www.isnhorizon.com
  27. 27. Like our Facebook page @ Property Xpress A Simple Guide to Sourcing/Buying Properties Below the Market Value 8. Visiting Potential Sellers I would assume at this stage you are well equipped with all the necessary information and a price to offer. Try and arrive for your appointment early, leaving plenty of time to possibly walk around the area just to get a feel of the local market (as previously mentioned a good knowledge of the area will always come in handy). Your sales-man skills will come into play when you finally arrive for your appointment, a courteous and calm approach is what I always recommend, most people will offer you a cup of coffee or tea, try and accept it, this helps calm the atmosphere down. For the first couple of minutes try and talk about anything other than property and concentrate on building on your rapport (remember most people are nervous as you are a complete stranger to them) use body languages, copy their posture etc… all this should help them relax and open up to you….. You will know when you have started to achieve this. When I perceive the time is right for me to introduce the subject matter, I start by saying “I am sure you guys are keen to know how much I am willing to pay for your property” then I go on to say “before I do that, can I just quickly have a look round your property if you don‟t mind” by asking for permission to have a quick glance you can see the general condition of the property, this should obviously be factored into your offer (allowing for costs if it requires a lot of work doing to it). ISN Horizon Limited, 60 Cannon Street, London EC4N 6JP Tel: 0844 4106068 Fax: 0844 4106069. www.isnhorizon.com
  28. 28. Like our Facebook page @ Property Xpress A Simple Guide to Sourcing/Buying Properties Below the Market Value After viewing return to the subject matter by saying “Am sure you know/understand how we work, so what I will be looking for really is if there are any areas you need me to clarify” (Briefly re-iterate the background of your business and how you intend to make a small profit from every transaction depending on what answer you get). Tell them what you are willing to pay and back this figure using the current market conditions (I will like to point out that when I started in this business the market was not as volatile as it is now, all these are factors you should use in your favour). Remind them again that you pay their solicitors‟ fees (suggest they use your recommended solicitor), they do not need a HIP‟s(Home information packs) done as this is a private sale and there are no estate agents fees to pay because they are selling directly to you. Get them to confirm that they are happy with your offer and close the deal with a firm hand- shake and say you will drop a copy of a formal offer letter later in the day or the next day (as is convenient for you). Spend another couple minutes getting to know them more and develop their trust level in you. Negotiation is an intrinsic ingredient in every transaction and your ability to Master good negotiation skills will definitely make you loads of money in this business, I will suggest you invest your time in reading books about negotiation and also email me and enquire about our deal negotiating service, where I personally visit your client with you and negotiate your deals for you. robahor@isnhorizon.com ISN Horizon Limited, 60 Cannon Street, London EC4N 6JP Tel: 0844 4106068 Fax: 0844 4106069. www.isnhorizon.com
  29. 29. Like our Facebook page @ Property Xpress A Simple Guide to Sourcing/Buying Properties Below the Market Value 9. Instructing your Team I am sure you must have asked yourself a countless number of times why I have spent my resourceful time writing this guide about how to succeed in this business and I am giving it out for FREE……….I will answer this all important question. What’s the BIG catch? Remember when we were looking at evaluating deals, I mentioned a 1% package fees. This is where I come in, my company offers a packaged service for your deals, where we provide you with Mortgage brokers, Solicitors and the funds to structure your purchases for you and that‟s where we make our money. Also we have clients who come to us to assist them acquire properties for residential and investment purposes, this means that we are always in need of properties and we are happy to pay people who can find BMV properties (property finders) giving them the opportunity to earn a 6 figure income. (typically we pay between £2000-£5000 per deal depending on the margins) Now with the market flooded with a glut of deals (too much for us to handle on our own) it can only benefit us if we educate as many investors as possible to find these deals themselves and sell to us or come to us to package it for them as a NO MONEY DOWN, LITTLE MONEY DOWN or a CASH-BACK DEAL for a 1% fee…..it makes logical and business sense. All you need to do is find and negotiate your deals and we will take it through to completion. Contact and instruct us with your deals and leave the rest to us….. ISN Horizon Ltd 60 Cannon Street London Tel: 0844 4106068 Fax: 0844 4106068 Mob: 07411 037641 Email: robahor@isnhorizon.com ISN Horizon Limited, 60 Cannon Street, London EC4N 6JP Tel: 0844 4106068 Fax: 0844 4106069. www.isnhorizon.com
  30. 30. Like our Take advantage of Property Xpress Facebook page @ an unstable Market and be the next Property millionaire….. A Simple Guide to Sourcing/Buying Properties Below the Market Value 10. Useful Resources Telephone Enquiry Questionnaire 1. Name of owners of the property Mr/Mrs/Miss…………………………………………….. 2. Full address including post code (post code is very important for research purposes later). …………………………………………………………………………. …………………………………………………………………………. …………………………………………………………………………. 3. Contact Details numbers. Daytime: …………………………… Mobile: …………………………… Landline: …………………………… Email address: …………………………………………… 4. Address of property to be sold. (Note that they may have another property to sell other than the one you are visiting.) …………………………………………………………………………... …………………………………………………………………………… 5. Type of property……………………………………………………….. 6. Number of bedrooms…………………………………………………... 7. Price paid (sneaky question) £………………………………. ISN Horizon Limited, 60 Cannon Street, London EC4N 6JP Tel: 0844 4106068 Fax: 0844 4106069. www.isnhorizon.com
  31. 31. 8. Date purchased (approx) ……/……/……9. Why do you want to sell quickly? …………………………………….10. Outstanding mortgage balance (sneaky question) £…………………11. Any other loans secured on the property £ ………………………………12. Estimated value of property £…………………………………………………..13. Is it currently being marketed by an agent £ …………………………..14. If so, which one? ……………………………………………………………........15. How long has it been on the market …………………………………………16. Has it always been this price……………………………………………………..17. If not when was it reduced? By how much? ………………………………18. Many viewings? How many? ………………………………...................19. Any trend in viewer feedback? What? ……………………………………………………………………………………………………. …………………………………………………………………………………………………….20. When do you want to move out? (Presumptive question) …………………………………………………………………………………………………….21. Any major defects. ……………………………………………………………………………………………………22. Any neighbour disputes (past or ongoing)? ………………………………………………………………………………………………… ………………………………………………………………………………………………..23. Any relevant issues of any sort that may be fundamental in making a buying decision? ……………………………………………………………………………………………………… ……………………………………………………………………………………………………..ISN Horizon Limited, 60 Cannon Street, London EC4N 6JP Tel: 0844 4106068 Fax: 0844 4106069. www.isnhorizon.com
  32. 32. Other ServicesFor further guidance, we offer a six months mentoring service whichincludes: 1. Ongoing back-end support for investors for six months (newbie investors are not left on their own) 2. Unlimited email and telephone assistance for six months (all your questions answered). 3. Unlimited deal stacking assistance for six months 4. Deal Negotiation assistance (I personally visit two potential sellers of your choice and negotiate your deals with you). 5. 10% off our package fees for your first deal.Email me for more information on this robahor@isnhorizon.comHave spare CASH?We also have bespoke investment opportunities for CASH-RICH investors, asa result of the current market conditions there is a plethora of CASH-COWinvestments that will make investors mind boggling returns, But the problemremains how do you appraise these investments and know which ones arerisk-free and suitable for you.Because of our expertise at ISN Horizon Ltd we have cherry-picked fromthese CASH-COW investments, BUT our investors do NOT share the risks, wecan offer our CASH investors a 100% guaranteed, risk and hassle - freeinvestment….with up to 5% guaranteed monthly return on their investment.So to put things in perspective…..We will pay you up to £500 every month for a £10,000 investment or £250every month for a £5,000 investment, GUARANTEED. Your investment issecure and you can pull it out after 3 months or renew for another term.(Unfortunately the minimum investment is £5,000)Sounds interesting? Please contact us for more detailsISN Horizon Ltd60 Cannon StreetLondonEC4N 6JPTel: 0844 4106068Fax: 0844 4106069Mob: 07411 037641robahor@isnhorizon.com ISN Horizon Limited, 60 Cannon Street, London EC4N 6JP Tel: 0844 4106068 Fax: 0844 4106069. www.isnhorizon.com

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