property investors network (2024)

1. Always Buy From Motivated Sellers

The first Golden Rule for Property investing is that you want to buy property from what we call motivated sellers. A motivated seller is someone who really needs to sell their property. They've got some problem and because of that they're more flexible on the price and/or the terms of the sale. This is because for these people it's not about getting the most amount of money, which is what most sellers want by the way, it's about getting speed and certainty that this transaction is going to happen.

Most people when they're looking to sell a property don't start out as motivated sellers. They want to get the most they possibly can from the sale of their property, but as time goes on people become more motivated. They have deadlines they're trying to hit. Maybe they need to emigrate or they're moving for a job. They could be growing the family, or their family is shrinking. Maybe they've got financial difficulties. They see selling this property as part of the solution to that problem.

Given that one in three sales in the UK fall through, even if someone gets a sale agreed there's a pretty good chance it might well fall through. Selling a property is not a fun or enjoyable experience. If a sale falls through it's really quite stressful.

If you can find these motivated sellers and then come up with an ethical win-win solution, they get what they want, and you can get a much better price or flexibility on the terms of the sale. It's important to understand here that we're not looking to take advantage of people. We want to find the ethical win-win that works for you and works for them. It is a numbers game. You need to learn how to find these motivated sellers and when you do, you're going to be far more successful in your investing.

"We’re not looking to take advantage of people. We want to find the ethical win-win that works for you and works for them."
property investors network (2024)

FAQs

Who is the best person to talk about property investment? ›

7 PROFESSIONALS YOU NEED WHEN BUYING AN INVESTMENT PROPERTY
  • MORTGAGE BROKER / FINANCIER. A good broker or banker makes sure that your finance is all in place and ensures the transaction goes through smoothly. ...
  • REAL ESTATE AGENT. ...
  • PROPERTY MANAGER. ...
  • FINANCIAL PLANNER. ...
  • CONVEYANCER. ...
  • LAWYER.
Mar 1, 2023

How many properties does the average investor own? ›

Typical housing market investors are becoming more and more likely to operate smaller scale (owning three to nine properties). In June, this group accounted for 47% of investor purchases, the highest level since 2011, according to CoreLogic data.

How do you know if a real estate investment is a good deal? ›

What to Look For
  1. Expected cash flow from rental income (inflation favors landlords for rental income)
  2. Expected increase in intrinsic value due to long-term price appreciation.
  3. Benefits of depreciation (and available tax benefits)
  4. Cost-benefit analysis of renovation before sale to get a better price.

Is it hard to be a property investor? ›

Investing in real estate can be a success, but going it alone can be challenging and highly risky. Joint ventures, wholesaling, and property management are just a few ways investors can profit from real estate. It also takes a little savvy to become successful in this highly competitive sector.

What is the 1 rule for investment property? ›

The 1% rule of real estate investing measures the price of an investment property against the gross income it can generate. For a potential investment to pass the 1% rule, its monthly rent must equal at least 1% of the purchase price.

Who is the biggest property investor? ›

Let's explore the fascinating world of real estate wealth! Donald Bren takes the crown as the wealthiest real estate mogul globally, boasting a staggering net worth of $16.2 billion as of August 2022. His fortune skyrocketed by nearly two billion dollars in just two years.

How many millionaires are real estate investors? ›

Real estate investment has long been a cornerstone of financial success, with approximately 90% of millionaires attributing their wealth in part to real estate holdings. In this article, we delve into the reasons why real estate is a preferred vehicle for creating millionaires and how you can leverage its potential.

How many properties do millionaires own? ›

As of 2019, a plurality of millionaires in the United States, 43 percent, owned only one house. This compares to 8.5 percent of millionaires who owned five or more properties.

How many properties does the average millionaire own? ›

On average, a millionaire's most valuable property is valued at $953,917. Many are actively expanding their real estate portfolios and own about two homes. About 19% of millionaires own three homes or more. By contrast, the average worth of demi-billionaires' property is valued at over $10 million.

What is a good return on real estate? ›

A “good” ROI is highly subjective because it largely depends on how risk-tolerant a particular investor is. But as a rule of thumb, most real estate investors aim for ROIs above 10%.

What is a good cap rate for a rental property? ›

That said, many analysts consider a "good" cap rate to be around 5% to 10%, while a 4% cap rate indicates lower risk but a longer timeline to recoup an investment.1 There are also other factors to consider, like the features of a local property market, and it is important not to rely on cap rate or any other single ...

How long does it take to get rich from real estate investing? ›

By continually flipping or renting the homes you live in, your net worth will probably hit the $1 million dollar mark within another 10–15 years and you can continue to get rich in real estate, while everyone else you knew at age 25 is still plodding along with little to nothing in the bank.

Can a real estate investor become a millionaire? ›

More importantly, real estate remains a wealth-building tool for the majority of moguls. An estimated ninety percent of millionaires were created through real estate investing. Any billionaire in the U.S. or anywhere around the globe that you know of has invested in real estate in some form or the other.

Can a real estate investor become a billionaire? ›

in Conclusion, becoming a billionaire in the real estate industry is a rare achievement, and success is never guaranteed. It requires a combination of skill, knowledge, opportunity, and a bit of luck.

Who to talk about investing? ›

You can hire a broker, an investment adviser, or a financial planner to help you make investment decisions. You can also get investment advice from most financial institutions that sell investments, including brokerages, banks, mutual fund companies, and insurance companies.

How do I find someone to invest in real estate? ›

Ways to Find Real Estate Investors
  1. Real Estate Events. Both local meetups and grand-scale national conferences serve as invaluable networking platforms. ...
  2. Your Network. Don't overlook the potential partnerships and connections that your own network may provide. ...
  3. Social Media. ...
  4. Real Estate Agents. ...
  5. Investing Websites.
Jul 28, 2023

How do I talk to a property agent? ›

How to Talk to a Real Estate Agent
  1. Work with one agent. Be direct and ask your agent about terms of exclusivity if you are unsure. ...
  2. Be clear with how you want to communicate. Do you prefer phone calls, texts, emails, or face-to-face? ...
  3. Communicate your wants and needs. ...
  4. Ask questions.

Is it smart to buy an investment property first? ›

1. Can buying a rental property be a good investment before purchasing my own home? Without a doubt. Buying a rental property can always be a good investment and buying one before your own home can lead you down a path to owning your primary residence as well.

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