| Hopefully in selecting your cheap property | | | | |
| for investment you have followed our tips | | | | Once you have the list approach the seller. |
| detailed within our last article entitled | | | | Explain that your surveyor has found that the |
| "How Do Property Investors Find Cheap | | | | property needs a lot of work. Mention one or |
| Property". You will have looked for and found | | | | two of the more expensive items. Then prepare |
| an area where prices are soon to rise | | | | the seller for a low offer explaining that |
| dramatically. You will be sure there are | | | | the repairs will cost substantial sums and as |
| plenty of buyers or renters for your cheap | | | | such your offer will not be anywhere near the |
| property. | | | | asking price. |
| | | | |
| Now you need to talk to the seller about how | | | | The next step is let the seller know you are |
| much he will accept for the property. | | | | in a good financial position to buy his cheap |
| | | | property. Your loan has been cleared by the |
| First rule for a cheap property investor may | | | | bank and you're willing to arrange for a fast |
| seem obvious but you would be surprised at | | | | exchange of contracts and completion. |
| how many investors don't follow it. The rule | | | | |
| is quite simply 'never ever offer the full | | | | Then and only then make an offer. Maker sure |
| asking price, no matter how much you want to | | | | its well below the asking price, possibly |
| buy'. The second rule is 'Don't just offer | | | | 25-30% less. If a cheap property is on the |
| less than the asking price, offer | | | | market for £100,000, offer £69,000. |
| substantially less'. | | | | Lower the seller's expectation level. The |
| | | | likelihood is that depending on the attitude |
| The first step in the offer process takes | | | | of the seller you will agree a figure between |
| place way before figure is discussed. Firstly | | | | £80,000 and £85,000. That's a cheap |
| get an experienced surveyor to go through the | | | | property you will have bought and most |
| property with a fine toothcomb. Make sure he | | | | importantly £15,000 extra in your pocket. |
| finds everything that's wrong with it now and | | | | |
| all repairs that are likely to be required | | | | Our next article will cover the subject of |
| within the next five years. Make sure that | | | | builders. How to find and motivate a builder |
| the surveyor puts a cost against each item. | | | | is an art that the successful property |
| This I promise you will be money well spent. | | | | investors have mastered. |