My question is:

 

Do you like buying and selling and making a quick profit (like Sarah Beeney?)

 

Or

 

Do you like buying and holding out for the long term, making a smaller profit in cash terms but building equity effortlessly?

 

Now this is a key question.  I am firmly in the latter category and this is what I bang on about in my books. 

 

The latter category type of person is an investor.  We buy and hold for the long term.  You can definitely call us Landlords as this is what we do.  We buy, we rent and skim a profit every month to create an inflation proof income for life.

 

The first category however cannot be over looked!  The market is about to turn.  Forget Property snakes and ladders now, it is definitely property ladders only.  So the opportunity to make a consistent £5,000 to £50,000 per property on refurbishment projects is a real possibility.

 

I am not sure how long your interest in property has been but The Property Ladder programme used to follow the format back in the day:

 

1. inexperienced couple buy an overpriced property
2. they refurbish the property based on what they like rather than based on potential profit
3. inexperienced couple over spend on budget thus making a loss on paper
4. the project took them longer than expected in which the market has risen
5. inexperienced couple make a small profit after expending a lot of effort and risking lots of cash.  No return on capital equation is done. Inexperienced couple pat themselves on the back as they made a profit and they go on and buy the next property.

 

I believe this is now possible.  If buying and selling is what really wets your appetitie and you know what you are doing then welcome back!  Say hello to big gains.  The first time buyers are on their way and they want to buy. 

 

And remember first time buyers do not understand cost per square foot.  If the property looks pretty and you have staged it well then you will get a sale.  Surveyors are under pressure to survey up now so I think the risk of down valuations may start to disappear.

 

So why am I telling you all this?  Well I had an excellent meeting with my team yesterday.  We come across property deals that need refurbishment or are just plain old CHEAP.  We used to let these pass as we were trying to find properties that suit the investor/landlord type.

 

We are no longer letting these pass.  We will be offering these to clients who want to do a bit of buying and selling.  Now there could be some of you who say I want to be both.  I have to admit I am starting to think that buying and selling for the next 2 years could generate more investment capital to invest in years 3 and beyond.

 

If you want to be both this is fine.  We can find you investment properties as well as properties that you can buy and sell.  The really exciting bit is we can find you properties to buy and we can sell them on to our existing client base if the BMV % is right.

 

In other words we could find you something 50% of market value, you spend 10% and you offer it to our client base at 70% of market value (i.e. 30% BMV).  Then you make 10% of the purchase price and our client gets a property no money down.  You do one of these a week there is no reason why you cannot be earning £20,000 per month!

 

And here is another good thing.  We are making it really cheap to join up.  We have decided to subsidise this side of the business as people wishing to buy and sell can be really helpful in meeting our investor type client’s needs!  It will only cost £99 to become a trader client. 

 

If property trading has been something you have always wanted to do then this could be the time.  We can also provide the workmen to carry out the refurbishment if necessary.  So you could effectively conduct your own property refurbishment from the comfort of your own home.  I think they call that armchair development!

 

Anyway watch this space.  I hope to have this live by next week.

 

Ajay

 

PS Get my training pack for free!

 

 

Posted on: 19th Aug 2009