A question I am frequently asked is How to find repossessed property? This is because, most property investors know that if a property is repossessed, the property is usually put on the market for sale, for less than it is worth (below market value). Understandably, investors who are looking to pick up great property investments at a discount, look to buy repossessed properties from estate agents and auctions. Whilst in one way this makes good financial sense for the investor, who will be purchasing property below market value, it does not help the unfortunate individuals who have been repossessed.
According to recent figures released by the Council of Mortgage lenders, some 18,000 homes have been repossessed in the first half of 2011, with another 22,000 predicted for the second half of this year. It is estimated that a total of 45,000 homes may be repossessed in 2012.
My view on property investing is slightly different. Of course my aim is to increase my own personal wealth both in terms of immediate cash flow and long-term pension provision, however I believe that I can help other people along the way. In fact I believe by helping other people we will all become wealthier in many ways, not just financially.
Instead of looking to purchase cheap repossessed property below market value, I find people before they get repossessed, and see if we can save them from repossession by reaching an ethical win-win solution that works for all concerned.
Let me make it quite clear, I’m not a charity, and I am looking to make money from every deal I do, but that does not need to be at the expense of someone else. Far from it, in many cases we can reach an agreement whereby the seller can avoid repossession and so end up in a much better financial situation, then if they were repossessed.
This is the way I prefer to invest, and the way I have taught many thousands of people how to invest in property since 2003.
Generally, people who are about to get repossessed are quite motivated to find a solution to the problem. Unfortunately, we can’t help everyone, and some people bury their heads in the sand just hoping the problem will go away. The key to being a successful property investor is to know how to find motivated sellers, and understand their problem, and find an ethical win-win solution.
There are many different types of motivated seller. People who are about to get their home repossessed is just one type of motivated seller. The two most important things for motivated sellers are, speed and certainty of sale, which are actually more important than the amount of revenue generated from the sale.
If you would like to learn more about how to find motivated sellers, then you may like to read my book “Property Magic” which is available on Amazon.co.uk, or indeed come and spend a day with me on my property investing Quick start seminar on which I will teach you how to find motivated sellers.
Full details here: www.PropertyInvestingQuickStart.com
founder, property investors network