There were some really interesting questions asked including should you buy ex council properties in London. My answer was yes because you could pick up an ex council flat for less than £250k in London, with four rooms which you can multi let and get a great cash flow. Often these are in a great location and being ex council usually the rooms are a good size.

However, you do want to make sure that at least 50% of the development is privately owed and you need to be aware that is it difficult to get mortgages on some ex council property particularly if they have balcony access, are high rise or non standard construction.

After the panel discussed a lady approached me and said she liked what I said but that she though most ex council properties were ugly and she would not want to live there. Personally I believe she was making two big mistakes than many amateur investors make which is what inspired me to write this post.

I asked her: “Are you planning to liver there yourself?” She replied “no of course not it is a rental property”. So then it does not matter if she would not want to live there, as long as there is a strong rental demand in the area with plenty of other people who are prepared to live there?

Secondly the outside of the property may not look very attractive. That is not as important as what it looks like on the inside. Most tenants do not care what it looks like outside as long as it is good inside. As an investor it is the numbers that need to work for you.

The lady took on what I said and then asked me “Well what about when I want to sell it on?”.

“Good question” I responded “ But why would you want to sell it if it is making money for you”

The lady agreed and said that she was going to revisit some properties she had previously dismissed because they did not look very nice from the outside.

What are your thoughts on this?

Kind regards,

Simon Zutshi

I have read the Donald Trump Books but not heard him speak before, when the opportunity came up to see Donald Trump, live I made sure I had a Diamond Ticket with the best seats in the house and access to the after show drinks reception.

I was actual very impressed with Donald Trump presentation as I was not sure if he was going to do it in an interview style as Richard Branson and Alan Sugar had been the year before at NAC.

I am not sure that I agreed with everything he said but whether you like Donald Trump or not, you have to admit that he is one of the most successful property investors in the world.

The biggest learning for me was when he warned against the dangers of rolling up profit and putting everything into one deal which if it went wrong it could wipe you out. He told the story of a friend of his who had build up a $3Billion company and lost it all when a $12Billon deal went wrong. This is a valuable lesson for all of us, no matter what level you are investing at.

One of the main strategies that Donald Trump has used to build his incredible wealth is purchase options whereby you can gain control of an asset without owning it. By controlling assets and then “Trumping then up” he has successfully added massive value and hence made massive profits.

Purchase options have been used here in the UK for many years in relation to Land and commercial deals, however the use of Purchase Lease Options is relatively new to residential property investing.

Purchase Lease Options are a great strategy for the current market conditions as you have the right (but not the obligation) to buy a property, at a fixed price by a certain time in the future, and in the meantime you pay a monthly option fee and get us of the property. You could chose to live in the property yourself, or rent it out to make cash flow and equity growth on an asset that you do not own.

Purchase Lease Options are becoming so popular that I have added a whole chapter about them to the new 4th updated and revised edition of my book Property Magic. I am also writing a new book all about how you could profit from using purchase options called No Mortgage Required. If you would like advice notice when this book is available please click here now

Kind regards,

Simon Zutshi
Founder, property investors network

Many people have asked if they can have access, or buy access to the Property Mastermind Forum but the answer has always been and will always be “No sorry the only way to get into the Property Mastermind Forum is to be part of the Property Mastermind Programme!”

However, you can have a peek behind the scenes of the Property Mastermind Forum here www.Property-Mastermind.com/ForumDemo

Extra features of the Property Mastermind Forum

In addition to the usual discussion environment, common to most online forums, there are a number of unique features which has made the Mastermind Forum such an invaluable resource for our Property Mastermind delegates as follows:
Property Deal Exchange
When you are a delegate on the Property Mastermind Programme you will learn how to find motivated sellers and turn these into win/win ethical deals, some of which you may not wish to personally purchase, as they may be out of your area or just don’t fit your strategy. Rather than waste these fantastic deals you can do joint ventures or sell these deals onto other Mastermind delegates and their contacts. There are some cash rich investors who join the Property Mastermind Programme just to get access to other Masterminders who can find deals for them instead of doing it themselves.

The Vault
This is where all of the audio recordings from;
• The advanced Property Mastermind workshops
• Monthly Property Mastermind Q&A webinars with Simon Zutshi
• All or our one day quick start seminars
Are available for you to download to reinforce your continued learning.

Members Map
This is an online map that shows the location of the Property Mastermind delegates and graduates all over the UK. This is extremely useful when you find a property lead outside of your normal area as it means that you can tap into local knowledge of the area, or even arrange for your fellow Masterminder to go and check out the potential deal for you. This means you automatically have access to a network of like-minded property investors all over the UK

For more details of how the Property Mastermind Programme can help you can register for free now at out pre members area here: www.Property-Mastermind.com

Kind regards,

Simon Zutshi
Property Investors Network

In Part one of this article I shared 5 questions that you can use to get the Estate Agents to bring motivated seller leads to you.

In this Part Two of the article, I will share with you what to do once the Estate Agent has given you a motivated seller lead as a result of asking these questions.

Once an agent gives you a lead you need to act quickly. First of all you need to fact find form the Estate Agent to get as much information as possible about the property, the seller and their circumstances. Very often the agent may not have the information that we would normally get from the seller and so we need to arrange a visit to the property when the seller is there if at all possible.

That means usually asking for a viewing in the evening or at the weekend outside of the normal estate agency working hours. We are not attempting to cut the agent out in any way but it is always best if we can speak seller direct to the seller to truly find out what is important to them. Remember if the seller is truly motivated it is not always the most money they will go for but the need for speed and certainty. If you do meet the seller in person ask then for their contact details in case you have any further questions.
Always give feedback to the Estate Agent to tell them about the viewing and share your thoughts. If you have made an offer to the seller always pass it through the agent as well to make sure they don’t think you are trying to cut them out of the deal. If the offer is not accepted tell them that you will leave it on the table and make sure you follow up every few weeks to see if they have become more motivated such that they will now consider your offer.

Once you have successfully completed a purchase through an Estate Agent you need to go straight back to them and tell them that you are looking for another purchase. As you have just demonstrated that you are a serious investor they will take you far more seriously that other investors interested in the same kind of deals. You will have worked your way onto their shortlist of preferred investors they call whenever they get a good deal.

To learn more about successful property investing you may like to buy Simon Zutshi’s “Property Magic” on Amazon.co.uk

You would think that estate agents would be an excellent source of motivated sellers. After all, the estate agents will know when a sale has fallen through, or if the seller needs to sell in a particular hurry.

As an investor, one of your goals should be to get on your local Estate Agent’s shortlist so that you are one of the people they call whenever they get a good deal.

Instead of asking the estate agents directly if they have any motivated sellers, which may not get the response from the agent that you want, there are five specific questions you can use to identify the circumstances which might mean that the sellers are motivated.

Here are the 5 questions to ask estate agents:

1. Do you have any empty properties?

There are four main reasons why a property could be empty: If the property looks a bit trashed it could be a repossessed property as often they are damaged on the way out by the previous owner who understandably could be bitter about the repossession; If it looks dated and in need of modernisation (often with some furniture left in it) it could be a deceased estate as probably someone has lived there for a number of years and not made any improvements to the property; If it is in good condition but empty with no furniture then it could well be that the seller has already moved to a new property whilst trying to sell this one; And finally, if it looks a bit tired and is being sold with some furniture in it then it may well be a former rental property that a landlord is selling. In all four cases, as the property is sitting their empty, the seller could be motivated to sell at a good price.

2. Do you have any property that has been on the market a long time?
This question will identify properties that are just not selling. Maybe the price is too high or something about the property is putting off potential buyers. It may well be that a sale had been agreed and has fallen through on the property, which might make the seller even more frustrated
In any case, maybe there is some scope for a discounted offer. You can track changes in property prices by using website like www.property-bee.com

3. Do you have any properties where there is more than one agent selling it?

Often sellers will list their property with two agents or more agents in an attempt to find a buyer quickly. They may not be willing to sell at the price you are prepared to pay but it is certainly worth a look. The agent may be worried that they will not earn any commission if the other agent finds a buyer and so they may ne more motivated to work with you to find a win win for the vendor and you.

4. Do you have any properties that are listed for sale and or for rent?

You often find that people are keen to sell their property but will consider renting for a while if they are unable to sell. This is perfect for you if you are looking for Purchase Lease Options where by you rent the property out with the right to buy in the future. We would normally pay the Estate Agent their fee at the time we sign the contracts otherwise they will not get paid until the end of the option period which could be several years and so may not be very popular with most agents. Remember the agent needs to see what is in it for the them and the seller if you want them to agree to anything slightly different from the norm.

5. Do you have any sellers who keep calling the office to see if there is any news on their sale?

This is a sure sign that the seller is getting desperate; every few days they call the estate agent to see if there is any news. Often the seller will not tell the agent the full details of their situation but this behavior is a sure sign that they are desperate to sell and so there may be a deal there. This person may be starting to annoy the staff in the agency and so when you ask this particular question often a particular seller will spring to mind!

In the second part of this article I will share with you what to do once the Estate Agent has given you a motivated seller lead as a result of asking these questions.

To learn more about successful property investing you may like to my book “Property Magic” on Amazon.co.uk

Kind regards,

Simon Zutshi

The answer is I don’t just target vendors who would be prepared to grant a purchase lease option on their property, for the simple reason that this may not be a viable solution for many vendors, particularly those who are selling because they need the cash.

Instead, I focus on finding motivated sellers who have a property related problem and some of whom I may be able to help with purchase lease options.

Having said this, I want to highlight, two particular types of motivated sellers for whom Purchase Lease Options could work really well.

The first type is the vendor who has a property listed with an Estate Agent and a letting agent at the same time. I am sure you will have noticed this in the past.

This would suggest that the vendor probably wants to sell but is struggling to do so and thus is prepared to rent until they can sell. This is exactly what you are proposing with a Purchase Lease Option.

The second type of vendor is the tired or retiring landlord, who no longer wants the hassle of their buy to let property. I find that this type of vendor may also be more open to creative solutions than the average motivated seller. You can find these landlords by looking in newspapers or online for landlords who are renting their properties out or you may even meet them at property networking events.

Having identified the vendor you need to know what to say to them. I recommend you never use the words Purchase Lease Option, as most people will have no idea what you are talking about. You need to keep the language really simple and demonstrate how you are solving their problem.

There are two simple questions you can ask the property owner to determine if they would consider granting you a purchase lease option on their property.

1. “Would you be interesting in renting your property on a long term let for between 3 to 5 years?”

2. “Would you be interested in selling the property to me at some point in the future?”

If they answer yes to both of these questions, then there is a good chance that a Purchase Lease Option could work. It then comes down to a matter of negotiation around the purchase price, the length of the option and the monthly payment.

Kind regards

Simon Zutshi

http://www.youtube.com/

In less than three weeks time we will be starting our 11th
Property Mastermind Programme, and to mark our 5th
Anniversary I am going to award a full Scholarship,
and you could be the lucky person to win it.

I am going to be holding a one off Webinar this FRIDAY
6th April at 11am in the morning. This is good Friday so
hopefully you won’t be at work and so able to listen in to
find out how the Property Mastermind Programme could
change you financial future forever!

We only open the doors to the Property Mastermind twice
a year, in April and October. On the April programme we
meet up once a month on a Friday and on the October
programme we meet up once a month on a Saturday. In
between these one day advanced workshops you get support
from our 24 hr forum and your own personal property coach!

If you would like to be considered for this full scholarship you
need to join me on this webinar this Friday at 11am.

To register to join me on this valuable webinar you
need to do is CLICK HERE NOW

I hope you will join me on Friday morning at 11am.

Kind regards,

Simon Zutshi
Founder, property investors network

PS This is open to everyone, but you have to be in it to win it.
Someone has to win this scholarship and it could be you. You
need to take action now if you want to be successful.

I spoke to a letting agent and was rather surprised to hear that they had completely the wrong understanding about Local Housing Authority (LHA) tenants and problems associated with renting to LHA tenants.

The letting agent said, in no uncertain terms that their landlords do not accept LHA tenants, and she unexplained the reasons why. The slight problem with this is that information she shared with me was actually incorrect.

There are some common myths regarding letting your property to LHA tenants. In this blog I would like to clarify the situation

The most common myth is that the rent is always paid direct to the tenant who then has to pass it on to the landlord and that rent can only go to the landlord once the tenant is 8 weeks in arrears.

Now let’s be honest, this would be a big disadvantage of renting to LHA tenants if it were true. But it isn’t. You can write to the local council and get them to make payments direct to you instead of to the tenant without having to wait 8 weeks.

The second myth is that if the tenant makes a fraudulent claim for benefits, which if the rent has been paid direct to the landlord, then the council can claw back the rent from the landlord. Again this is incorrect however councils will try to do this even though it is not legal.

When checking these myths out, I found that huge number of people believe these myths to be true including many from all people who work in the LHA departments of local councils.

This just goes to show that when you seek advice, you need to make sure that the people you ask really know what they’re talking about. Because investing in property is such a popular topic in the UK many people are all too happy to share their advice with you, which often is more of an opinion, with no actual experience to back it up.