In this video: "How To Get Started In Property With No Money", I talk about how to consistently find discounted property deals. And also, what to do if you have no money to invest, to generate fat fees for the deals that you find.
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John Wilson here. And today I want to address the single biggest misconception that people have about property investing and that is the you need thousands or tens of thousands of pounds just to get started. And I'm going to cover our simple three-step process that you can use to get started without any money for deposits or without getting any mortgages at all.
Okay. Step number one is that you must deal direct with sellers. Now you can get deals in estate agents, but it's much much harder. It's important to go cut out the estate agent and deal direct with sellers. Nothing against agents but if you go through an agent, then you're up against a lot of competition. You're up against people who are looking to buy a property for themselves to live in. And also you're up against other investors. So lots of competition there.
When I first started, that's what I was doing. And I was wondering why I couldn't find any discounts. And what I would end up doing is putting in offers and the price would get bid up and I would end up paying close to market value, if not market value. And sometimes even a bit more than market value. So that was just something that did not work for me at that point.
Number two is that you must deal with only motivated sellers. So what's a motivated seller? A motivated seller is somebody who needs to sell, not who would just "like" to sell. People who would just like to sell have got the the luxury of time and they have time to do viewings and wait about until they get the price that they're looking for. However, if you need to sell, then you become a lot more negotiable.
Now motivated sellers think a lot differently to you or I you know, they may be motivated because they've got a job in another city and they need to move. Maybe they've inherited a property. They may be in financial difficulty. And you as the investor can go in and solve their problem. You can create a win-win situation for both of you and get a good deal in the process.
And you have to understand that motivated sellers think a lot differently to you and I. They value things like speed of sale, assurance of sale. Sometimes privacy, confidentiality. They may be in a situation that they don't want their neighbours to know that they are selling and they just want a quick sale. So that's where you can help and when I first started doing this, going direct to motivated sellers, you know, the very first time I put up an advert and I couldn't believe it when people started actually calling me. And I had a deal my first deal within days of doing that, so it works really well.
And that's how I built most of my portfolio. Now, if you don't have money to buy these deals yourself then what you can do is you can package those deals. That's just the name we call it. But all it means is that we're finding a good deal and we're passing it on to another investor who wants to buy it who's able to buy it for a fee. And that fee can be anything from one, two thousand pounds up to, you know, sometimes six, seven, eight thousand pounds or even more, just depending on the how good the deal is and the type of the deal. And also the type of the service that you are providing.
And by the way, serious buyers could not give a monkey's about BREXIT and they are still buying like crazy. So don't worry about that. I remember when I got my first deal packaging check years ago. I couldn't wait to show it to my mother because she was always a little bit unsure about what I actually did. So it was kind of concrete proof that I was earning.
So deal packaging is a bit like a bridge. You are acting as the conduit between the deal that is that you found you found a discounted deal and you are connecting that deal with the investor. The buyer who is ready and able to buy and you make a fee for sitting in the middle, or you could think of it a bit like being Boba Fett out of Star Wars. You're hunting for deals for Bounty or whatever, right?
Anyway, this has been John Wilson from Property Investment Blueprint.com. I hope you enjoyed the video if you did then like it and if you know somebody who could benefit from it then share it as well. So thanks for watching and I'll see you next time.