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