Tip 1) Target motivated Sellers
The current difficult economic conditions will create many difficulties for home owners. With many home owners fixed rate mortgages coming to an end, many will see their mortgage repayments rocket and as a result, many will move into arrears on their mortgage payments. However, this is where savvy property investors can help home owners in financial difficulties plus make big profits in the process.
People who are in financial difficulties and who are keen to sell their property fast are called motivated sellers. These are the kinds of people property investors want to target because a property investor can offer to buy a home owners property fast in return for a large discount off the properties market value of up to 30%.
This not only means that an investor can make immediate profits, but it also means that it saves home owners from financial ruin. Another benefit to both parties is that investors can offer the vendors to stay in the property as tenants and offer a rent back option meaning that tenants can stay in their property but without the financial strain of having to keep up to the mortgage.
But the key question is, how do property investors find motivated sellers? There are many ways that this can be done but two of the most effective ways are to drop leaflets around your local area or to set up a small website to capture leads. These are the two lead strategies that large investment companies use to target motivated sellers and it is highly effective if implemented correctly.
Tip 2) Buy Distressed & Repossessed Property
These types of property deals are great because you can buy them well below market value and as all property investors know, most of the profits are made when you buy a property not when you sell it.
And because of the tough market conditions, many home owners will have their properties repossessed which means investors can buy property well below its market value.
Buying and renovating property is one of the oldest and most profitable strategies that investors use and as long as you buy the property cheaply, there are huge profits to be made, especially in these market conditions.
Buying repossessed property is one of the holy grail deals for property investors. Through my business, we have found large amounts of repossessed property deals throughout there are so many bargains available now to investors if they are willing to search for them.
And with the tough market conditions looking like they will continue for the foreseeable future, there are guaranteed to be plenty of repossessed property deals and bargain properties that will be available to be bought very cheaply.
Conclusion – The current tough property market conditions will mean that there will be large amounts of bargain property deals available for investors who are willing to find them and bargain hard to buy them at the right price.