Property is the most amazing investment you can make. As Robert Kiyosaki said: If you just buy one property every year, you’ll be set up for your retirement. Take it to the next level and buy more than one property a year, say 6 or 12 and it’ll become the most amazing business you will ever have. In fact with a little effort, determination, training, support and a realistic business plan it’s a sure fire route to financial freedom in a very short space of time.

As Dolf De Roos said: Look at it this way; if you invest £100,000 in the stock market what will you get? Well you will have £100,000 worth of shares. If the shares perform well and let’s say you double your money over 10 years your investment will have given you a 100% return in 10 years, giving you a nice £200,000

You will however, need £100,000 starting capital for this method of investment.

If, instead, you invest £100,000 into property what will you get? If you buy wisely you can buy a property worth £130,000 for £100,000, so you have made £30,000 instantly. Over the next 10 years the property will (historically) double in value so you will have a property worth £260,000.

However….and this is the clever bit! With property you can borrow up to 90% of the purchase price from a bank. In this way you can leverage your money much further. This means that your £100,000 will allow you to buy 10 properties by putting £10,000 or 10% into each property. If you purchase well, each property will cost £100,000, but by buying below market value will actually be worth £130,000.

Now if each property then doubles in value over the next 10 years you will have 10 x £260,000 worth of properties which equals 2.6 million less the 10 x £90,000 you borrowed from the bank equals £1.5 million.

Banks are very keen to lend you money to invest in property. They see it as a very good investment and – even after the recent Northern Rock fiasco – you can get all sorts of flexible loans on flexible criteria allowing you to buy a lot of property. Try asking them to lend money to buy shares (even for you to buy their own shares!) and you won’t get the same kind of results. Property is seen as a good risk. Shares are seen as high risk.

Buying below market value, i.e. making your money as you buy rather than waiting to sell is what makes this even better!

Armchair Investments

If you look at the rest of our website you will see that rather than selling fish, we try to help people to fish for themselves. However:

We have generated a wonderful lead generation and close system that is allowing us to take more deals to completion than we have the deposit money to finance. Seriously!

We hate to see all these potential deals go to waste though – not least because of all the good people who cand potentially be saved from repossession and loss of their homes – so we are making them available to you.

How It Works: The Traditional Way

If you were to do this yourself you would need to find a property to purchase; arrange an 85% buy to let mortgage; put down a 15% deposit; pay your (approx) £3,000 - £4,000 purchase fees; sort out the refurbishments and find a tenant.

Using an example of property with a purchase price of £150,000 you would put down a £22,500 deposit, £1,500 stamp duty, £3,000 - £4,000 costs and fees, and up to £10,000 refurbishment costs.

That’s nearly £40,000 per property. So if you wanted to buy 5 properties you would need close to £200,000 starting capital.

It is also important that your mortgage payments should be lower than your rental income so that you don’t end up with a liability rather than an asset, at least for the short term. If you get this wrong then you’ll be out working for the bank at 09:00 every Monday morning in order to finance your investment mortgages!

How It Works: The Armchair Way

We can do all this for you using our BMV purchasing techniques. It works like this.

We purchase a property for you in your name, let’s say with a value of £150,000. However, we specialise in buying below value so we will be able to find a property with this value at a purchase price of around £120,000. You buy it for cash using our bridging finance and immediately re-mortgage for 85% of £150,000, which is £127,500. This ensures the re-mortgage value before commitment. We will then refurbish it for you for around £7,500.

Sometimes we will re-mortgage again after refurbishment

This comes to a total cash requirement of £3,000 - £4,000 which if multiplied by 5 is £15,000 - £20,000

We will then find a tenant and manage your property for you for a 10% of rental income fee.

The Fee

If you want us to buy you 5 properties you place £50,000 with our solicitor which comprises £20,000 working capital and a £30,000 fee. If we can’t buy 5 properties with the £20,000 working capital then we will use some of our fee money. If we buy better and end up not using the £20,000, we’ll keep it for the next purchase. If we end up with more cash than we started with YOU will keep it.

You will end up with a portfolio of 5 properties with a value of £600,000 to £800,000 that will also generate a monthly profit.

If you are interested in this service please Contact Us for more information.

You may also wish to take a look at our Ready-Made & Packaged Deals page.