Before the crash most people only really thought about buying and holding for long term growth and profit through remortgaging, or buying and selling in the glory growing years of 2001 – 2007.
In this current market, where traditional finance is far more challenging, we have been teaching and pioneering many of the following creative ways to monetise property for more instant short term cashflow, and not just long term growth:
a) – FF
b) – PPD
c) – PB
Considerable short term cashflow can be made from monetising deals in one, some or all of the ways listed above. In 2001 to 2007, what we are about to share with you would have been considered voodoo and pie in the sky by most professional property investors, ourselves included back then.
They are not overnight-meditate-sip-pina-colada-on-a-beach-and-wake-up-rich strategies, but they do work, FAST in many cases, as we will prove below.
If you can spare 5-10 hours per week of well focused time pretty consistently, then you are bound to achieve faster income in less time.
That’s easy to do, you know that. But then it’s also easy not to do. What are you going to do?
1. B2S/FLIP – Flip [or B2S - buy to sell] You buy a property, cash, mortgage or with JV/Bridging finance, and sell it on to someone else [usually an FTB – First Time Buyer] at a NET profit. You can do 3 of these in a year, realistically, with 5-10 hours good time invested per week, without too much additional work, whilst sourcing your own properties to keep. £10K – £50K profit
2. Qualified Leads [QL] A vendor has telephoned, filled in a form on your website or requested a call back and the lead has been qualified: you have full details of the vendor and the property and they may take 20-30% UMV offer [it doesn’t have to be guaranteed, simply discussed or agreed in principle. The more concrete the agreement, the more you can charge]. Your Fee: £75 -£250.
3. Unqualified Leads [uQL] The vendor will not have been contacted at all. These are usually leads of who have said ‘no to 25% +’ but may have a minimum of 10% equity still in the property and who have left basic details about their property. They can also be a simple name and email from a web form on your website. This can be a really passive way of selling the leads without much work, and in the past we have bought leads in bulk, called them all, sold back the unqualified leads, converted the best deals for ourselves and sold on the remainder of the qualified leads to other hungry investors.
Your Fee: £20 – £50 [or £15 in bulk]
…join us on Wednesday for part 2 :)
In the mean time, leave your thoughts, comments, and questions below!
I’ll be waiting :)
Rob Moore & Mark Homer
Co-Founders of the Progressive Companies
Full Time Property Investors
Double Best Selling Property Authors
Over 350 Properties Bought & Sold
© Progressive Property Education LLP 2012