Up until 6 months ago the strategy was buy, hold and then remortgage. It had worked for me for 10 years and will work for me in the future however we are in different times.
The old way enabled an ordinary member of the public go from £500 to £15m in 10 years. Not bad eh? However with falling prices it is now possible to go from:
£500 to £50m in 1 year. That is a 10 million per cent return.
This is no joke. You may have heard of me talking about no money down below market value purchases. This is really the only way someone can sell a property. So you have organisations like me and plenty others getting vendors to either:
Either way the investor gets the property with little or no money down. The reason we can force the vendor to do this is because we are the only ones buying!
In the old days if I had asked the vendor to pay for a survey or agree to a discount to the survey amount they would have politely told me to get lost. Now all change.
So if a property costs nothing then how many can you buy? Well it certainly is not infinity. It will be the cumulative credit limits of buy to let mortgage providers.
Now popular to contrary belief there are buy to let mortgage providers. The cumulative lending limits are around £50m. 2 lenders offer £10m each and the rest of the others total £30m roughly. So you could borrow in your individual name a total of £50m. Sounds kind of scary and, dare I say it, easy but you can build a property portfolio very quickly if they like you.
If you approach a bank with a commercial arm then you could become a billionaire as they will lend to you infinitely (well almost) if they see a nice history of paying your debt.
The point of me saying all this above is to highlight how the opportunities that exist are massive even though everyone else is predicting gloom. The gloom is for property owners who somehow derive their worth from the property value. If you are an investor then all you care about is the purchase price. What happens after that is of interest only to the press.
So with purchase prices falling, interest rates falling and vendors falling over themselves to help you structure the deal no money down I would have to say:
IT COULD NEVER LOOK BETTER!
My team are being offered properties as described above at discounts to the RICS survey and are cashflow positive. We can get you little or no money down cash cows which frankly are no brainers. If you would like to buy some of these gems please request a callback and we will explain to you the benefits of being an Ahuja client!
Lets get to work.
Posted on: 3rd Nov 2008