Many people think the way to make money from property is to go to the eatate agents, find cheap properties, rent them out for a few years and then sell them on. This is a sound plan and will usually earn you some profits, but it is not the real secret to making huge life-changing amounts of money from property.
The real secret to making money from property is to make sellers come to you, rather than the other way round.
In particular you want distressed sellers who are desperate to sell their property as soon as possible, for whatever reason. It could be the result of a divorce or a move abroad, for example. The point is that they need to sell their house quickly and need to find a buyer, which is where you come in.
In return for you stepping in and offering to buy their property quickly, you are in the position to negotiate a substantial discount in most cases. So you could find yourself offering a price say 30% below the true market value and getting this price accepted. Therefore you've just bought a bargain property that you can immediately place on the market at it's real market value, or you can hold on to it for a few years, rent it out, and make huge gains when you come to sell it.
So how do you put yourself in the position where distressed sellers come to you?
Well the best way is obviously to advertise your services. So you could do a leaflet drop in your area or advertise in your local press and on internet classified sites in your area. Your overall message and selling point would be that you buy property for cash and are specialists in arranging quick sales.
To run this type of business you obviously need to be cash rich, or at least have the ability to arrange quick mortgages, and you need to have your legal team in place to handle any quick transactions. If you can do this then you only need 1 or 2 transactions each year in order to make a very nice income for yourself.
Look at this way, let's say you manage to get 2 people come to you in a year, each wanting a quick sale on their 1 bedroom flat. Let's say they're both valued at around £125,000 and you managed to negotiate them down to a price of £110,000. You close on each property in a week or two spending £220,000 altogether. You then put both flats back on the market for £125,000 through an estate agent and sell both making a total profit of £30,000 (minus expenses of course).
It sounds easy and it actually is surprisingly easy. In fact many property tycoons have built up their property empire this way. The only hard part of this business strategy is the advertising, but if you get it right and are able to encourage distressed sellers to come to you, then you can make substantial profits.
Click here to read James Woolley's review of Money For Nothing And Your Property For Free by Andy Shaw .