UK Property Investment Forum & Blog

September 6, 2009

3 Easy Steps to Spot Bad Property Sourcing Companies

Filed under: General — Tags: , , , — craigk @ 12:02 am

I read a timely article about rogue property sourcing companies. What these rogue property sourcing companies don’t realise is that they give other good property sourcers a bad name. In the end, customers become wary, the below market value business model suffers, everybody loose out!
Luckily they are simple steps to help investors and property buyers separate the wheat from the chaff:
1) Ensure that discounts are off RICS valuation
2) Ask if the sourcing company is member of a redress scheme (new law).
3) Check the terms of service

We’ve just introduced a Lease Option Hands-off Service for Landlords & Investors.We only deal with reputable sourcing agents. Lease Options are the best way to invest and profit during the credit crunch times since this investment strategy not only guarantees you great cash-flow but also provides you a great exit strategy (guaranteed cash on the way out). However before you can enquire about our Lease Options Service, we strongly recommend that you read first the ebook Assured Positive Cashflow. The ebook explains Lease Options in an easy to understand manner so you gain a solid basis.

James Clark

PS: Article about rogue property sourcing companies  is from the LandlordZone.
http://www.landlordzone.co.uk/blog/news/landlord-action-warns-investors-about-rogue-property-sourcing-companies

In a nutshell, more companies have been asking for upfront fees to source below market value deals and marketing property deals that don’t stack up. Once surveyed for mortgage purposes, figures are far short of the original claim. Companies then refuse to refund fees so investors…

Rogue sourcing companies tend not to release enough information on the property so investors need to do additional research themselves into the property values, rental prices and the level of demand in the area. However, we’ve provided you 3 easy steps above on how to avoid falling victim.

January 14, 2009

How To Convert Your Buy-To-Let Into A Cashflow Positive Lease Option

Filed under: General — Tags: , , , , , , , , — craigk @ 10:49 pm

It is about time that property investors learn once for all that cashfow investing prevails over capital growth investing.

Many novice landlords and property investors have been persuaded by property consultants, agents, finance brokers etc to pursue capital growth investing rather than cashflow investing.

In a raising market, this strategy makes sense but still bears a great risk, as the investor or the landlord must plan his exit strategy to sell before the downturn arrives.

What distinguishes sophisticated investors from the rest is that their investment strategy always focuses on cashflow first, then capital growth. But the novices have been conditioned to do the contrary, they invests primarily for capital growth, and not so much for cash flow.

This is often why the novice will take such a long time, if ever, to achieve the financial freedom that they wanted from property in the first place.

If your investment property (buy to let) is in negative equity or negative cash flow, do not despair! Even during this economic downturn you still can turn things around and achieve positive cashflow. You can convert your assured shorthold tenancy into a lease option (rent-to-buy or rent-to-own).

Following are the steps on how to do it.

Establish why you shouldn’t sale

If you selling your property in the current market means you have you have to find funds to repay your mortgage then do not sale! Try instead to understand how to get more cash from your property by impleting a lease option agreement.

Determin the five key lease that make a lease options agreement

If you choose the lease option road, you have to determine the five key elements previously discussed:

  1. Your sale price
  2. The upfront option fee (the down payment that reduces the purchase price)
  3. The monthly rent
  4. The instalment option fees (that can also reduces the purchase price)
  5. The option period

You can learn how to determine these five elements and engineer a win win transaction between you and your tenant-buyer. To find out more visit http://www.assuredpositivecashflow.com

December 31, 2008

Most common mistakes that novice property investors make

Filed under: General — Tags: — admin @ 2:01 pm
  1. Mistake: Analysis paralysis
    Solution: learn well but act on your knowledge.  Nothing will ever teach you like real life experience of actually doing it.  Make mistakes, make them quick and especially quickly learn from your mistakes. That’s part of the process of become great. Free Online Property Course

  2. Mistake: Not vetting tenants properly
    Solution: Patience is a virtue. Doing research to set correct rent is a must. Attract the correct tenant is paramount. This will save you huge amount of time and money instead of needing to evict a bad tenant later.
  3. Mistake: Holding out for top rents
    Solution: Even if you’ve overpaid a property, cash flow is still king. Voids will costs you more that a small rent deficit. Do your maths!
  4. Mistake: Looking at too many deals and opportunities and not focusing on what’s right one for you.
    Solution: Investing is a strategy to achieve a personal goal. It’s not about chasing up deals or opportunities. Deals are vehicles which allow you to achieve your goals.
  5. Mistake: Not trusting your gut feelings
    Solution: if it doesn’t feel right just walk away - it’s better than kicking yourself later.
  6. Mistake: Feeling you’re missing out; everyone is doing better than you, has more money or property than you, etc.
    Solution: If you focus and persist, your time will come. Napoleon Hill’s quote: “The world has the habit of making room for the man whose actions show that he knows where he is going.”
  7. Mistake: Not understanding that before you invest in a deal you have to know your exist strategy.
    Solution: Learn how to achieve positive cash flow with the right exist strategy
    htttp://www.assuredpositivecashflow.com

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