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Neil Stewart of Clever Property Investing shares how he secured a Trowbridge property deal with minimal personal funds, and how others can do the same with the right support and knowledge.
“You can buy property with extraordinarily little of your own money!”
Have you heard people say this and thought that it can’t be true, or it is too good to believe?
Well, it is possible to purchase a property for little of your own cash. I do it regularly and have just bought one in March in such a situation.
I will tell you how in this article.
My name is Neil Stewart of Clever Property Investing, I have 21 years of property investment, coaching, teaching and mentoring. Many of my students have also purchased deals with little money of their own, some even with no money from their pocket.
Here is the information on a deal I have recently made. *I must emphasize that I am not a financial advisor. You must get financial advice from someone qualified to provide it. This is just me explaining how it worked for me.
The property I found was in Trowbridge and the owner/seller wanted £250,000.
After researching and calculating, I knew I could purchase it at the asking price and still make 23% profit after all costs each year.
Do not worry if you do not know how to do this, I will teach you.
I bought it with a seller finance deal.
With property investment finance, you can normally get 75% to 85% lending against the purchase price. I got 75% of the borrowing of the £250,000, that is £187,500.
This leaves me with £62,500 of the purchase price plus the purchase costs, such as solicitors’ fees and stamp duty etc.
That means I needed approximately £80,000 to buy this deal.
If I had £80,000 in the bank, then all would be well and good; however, as a professional property investor, you try and keep your money in the bank so that you can keep buying more deals like this. If I used all my £80,000 then I would have nothing left to buy another and then another. That said, I did pay for the solicitors and the stamp duty, which only came to £5,000.
The rest I borrowed from the seller.
I agreed to a loan with the seller for the remaining money I needed in return for an interest payment on that money each month for five years.
Why would I do five years, and why would they agree to do this you ask?
I do not have enough space in this article to go into it; however, I am happy to discuss this further if you want to get in touch and have a chat about it and help you get started on your property investment journey with my 100% money-back guarantee for my property coaching and mentoring programme.
Yes, I will give you back the money you spend on coaching with me if you do not find a property, while following my coaching programme that pays you back what you paid for the coaching programme.
Book a call with me at email neil@cleverpropertyinvesting.co.uk or telephone 01225 436499.
