Sample 1 - Blog #buying propertySample 1 - Blog #buying propertyhttps://lololol.zohosites.com/thoughts/tag/buying-propertyFri, 02 Aug 2024 20:55:54 -0700http://zoho.com/sites/<![CDATA[No Nonsense Property Offers to Purchase. Do not act like you are buying fruits at your Sunday farmers market... ]]>https://lololol.zohosites.com/thoughts/post/No-Nonsense-Property-Offers-to-Purchase.-Do-not-act-like-you-are-buying-fruits-at-your-Sunday-farmers-market...
Contrary to much given advice on the subject matter of offering to purchase any real estate, residential or commercial  property, we don't believe in the popularly advised so called negotiation tactics, "knowing how to talk down a price is an integral part of the profession." A lot of time is wasted with these so called tactics and ultimately focus on other profitable use of professional investors limited time is mis-directed. 


Many situations arise where homeowners or agents overvalue a property to such an extent that it is more than likely the norm than the exception unfortunately and whilst its surprising how many seem to believe it can be hard to have a conversation about how much the property is actually worth, there is a very simple solution to this minor obstacle. 


Whether the property is overpriced due to inexperience, a lack of understanding of the market, or simply someone hoping for the best, your role as a value focused real estate investment professional is NOT to help guide negotiations to something reasonable for the people involved but rather simply WIN, WIN, WIN! Anything other than WIN, WIN, WIN will more than likely resulted in wasted hours, days, weeks or even months. Take a hint from Warren Buffet's Value Investing Simple & Effective strategy.    

We aim to deliver much needed capital for SME’s and Property Developers.

1. Use Objective Market Data 

The best way to frame a negotiation is the buyer and seller working together to establish a fair market value based on third-party, objective market data and current economic as well as political climate. 


Being indignant or haggling over price only serves to put the seller in defensive mode. If comparable sold property date is carefully chosen and sound fact based arguments are made for their inclusion, it doesn't need to get emotional or haggling contest. 

2. Invest for the long term 

As an investor, you should be making money at the point of purchase NOT some unknown future date. Your initial offer MUST always be 20-30% less than seller/vendors target asking price and must be backed-up with appropriate market data. Whilst many sellers will bury their heads/ frown at your "serious offer" and prefer to wait for the next possible buyer who will over-pay, you must every 30 days or so, check in and remind the vendor or agent of your still standing serious offer and ready to complete transaction within 8 weeks. Such an approach will definitely work best for you, as it allows you to win when at the point you acquire the property with the future even brighter. 

3. We all know that Cash Is King. Attach a deposit cheque to your offer.

Showing up or submitting your offer together with a contract stating instruction of solicitors & property survey with the aim to complete within 8 weeks and a deposit cheque sends the message...
 

a. I am a serious professional 

b. I am backing my words/intentions with crystal clear actions and ultimately cash 

c. No time to waste. I respect your time and more importantly mine. Lets transact or lets move on and its really that simple 


Its a fact not just psychology, putting a contract and hard cash on the table will set you apart from the "competition" and show the seller how serious you are about buying the property. The check must always be made out to title or escrow so you don't have to worry about a random seller running off with your money. Take professional legal advice & assistance on the best way to do this for your circumstances & jurisdiction. 

4. Transparency Builds Trust, Long Term Relationships & WINS always.

It's always difficult for a vendor/ seller to disagree with market factual data. Stating the factors behind arriving at a certain valuation will build a collaborative relationship between buyer, agent and or seller. Ultimately contract subject to purchase price not being lower than official survey value and abortive costs undertaking should very easily resolve this minor challenge for a WIN, WIN, WIN outcome. 

5. Above all Know & Understand Your Seller as well as Motivating Factors 

The most important and initial task to do is to understand the other party's priorities & motivations including any time factor constraints. You want to know what ultimately is most important offer acceptance factor(s). It is not always the highest price as is generally thought as most buyers don't do in-depth research in this aspect. You wouldn't play a game without knowing the rules, would you? 

]]>Thu, 07 May 2020 21:05:00 -0800<![CDATA[Buying or selling a house during the pandemic]]>https://lololol.zohosites.com/thoughts/post/Buying-or-selling-a-house-during-the-pandemic

An article by Caroline Vernon, Partner at Sherrards solicitors. 


Caroline Vernon, Partner at Sherrards solicitors explores the impact of the Coronavirus on the residential property market and provides guidance for those currently in the process of buying or selling a property.  Click here to read the full article.

We aim to deliver much needed capital for SME’s and Property Developers.

]]>Tue, 21 Apr 2020 12:01:21 -0800<![CDATA[ Important Factors To Consider When Buying Investment Property - Your Game Plan! ]]>https://lololol.zohosites.com/thoughts/post/Important-Factors-To-Consider-When-Buying-Investment-Property-Your-Game-Plan

 

There’s no question that the right investment property is an incredible financial opportunity. 


Whether you purchase a residential or commercial property, tapping into its potential, such as renovating and then renting out a space, can help you generate passive income and even turn a nice profit when you sell or long term income and capital growth. 


However, you shouldn’t just buy the first property you come across that looks interesting. Instead look at the numbers and do your homework. The best way to reduce risk is to know the cards on the table. 

We aim to deliver much needed capital for SME’s and Property Developers.

Call Now ​+44 (0) 203 2909019

Your Investment Objective or Desired Outcome #1 

The most important thing is to keep in mind why you're investing in the first place. 
  • Are you investing to have more passive income that will allow you financial freedom and the choices that come along with it? Or 
  • Do you want to build capital therefore, focus is capital growth Or 
  • Do you require both income and capital growth? 

Whilst there is no wrong answer, clarity on objective will determine what and how you invest in order to accomplish your end game/ goals. 


"All that glitters is not gold" Location, Location, Location, Research, Research, Research – KNOW THY MARKET 

Micro & Macro Economic Trends, Market Drivers & Influencers #2 

Understand what market demand your investment is there to serve. 
    
From there you can start to build an effective analysis of the key factors of price per square foot or square meter, the in-place rent versus expenses on that same basis to establish a margin and, lastly, how that margin effectively ties into your target yield and over what time frame. 

Disposable Cash to Invest - Your Personal Financial Situation #3 

Each person's personal financial situation is different and investment properties generate unique financial outcomes. 
  • Some might require smaller investments and incur fewer costs along the way, but produce little to no ongoing revenue for a while. 
  • Others will require larger upfront and ongoing investments, but will generate greater cash flow right away.  

Community Considerations And Regeneration Investment Areas #4 

Return on investment is the most important factor for most property investors and developers. Investors and developers must however be prepared to answer important questions that stretch beyond their own monetary returns like benefits to the community and society in general. 

Considerations  such as 
  • Amenities 
  • Energy efficiency etc. 

Anticipation of Market Cycles & Preparedness #5 

When considering an investment property, while it is important to confirm the property meets your cash flow and investment criteria, as an investor the best thing to keep in mind is how you can strategically reposition the asset to increase your returns and be prepared during downturns in the market. 

Real estate is one of the best asset classes to build wealth and maintain wealth through the proper use of  debt and leverage if managed well. 

Your Real Estate Ultimate Strategy and Objective #6 

Clarity: Know what you want your end result to be and this will guide your investment decisions. 
  • Cash flow 
  • Capital Gains Or 
  • Both Cash Flow and Capital Gains 

Know your strengths and your weaknesses and build a team around you. Business and investing is a team sport. 

GIC Capital – Matching Capital With Opportunity  London +44 (0) 203 290 9019

]]>Sun, 22 Sep 2019 23:40:13 -0800<![CDATA[Commuter links continue to be key influence in UK property market]]>https://lololol.zohosites.com/thoughts/post/Commuter-links-continue-to-be-key-influence-in-UK-property-market


When it comes to buying property one of the key factors that should influence your decisions, is what buyers and tenants are looking for. Keeping this in mind throughout the process, will help you to choose projects that have the potential to deliver the greatest return and market your property effectively.

Commuter links have long been a key factor when deciding on where to live. Nobody wants to sit in rush hour traffic for hours on end or struggle with public transport because of poor links. From getting to the closest shopping destination with ease to visiting family, transport networks are essential for both buyers and renters. However, its links to work that consumers are most concerned with.


Research from AA Mortgages revealed that a change of job was the biggest reason for Brits deciding to move home, significantly surpassing making a profit from the housing market. For almost a quarter (23%) a new job was the catalyst for searching for a new property to buy, it’s likely that a similar factor drives renters too.


So, what does this mean for property developers and landlords?


Homeowners willing to move for their new job will want the easiest possible commute to work while still living in a desirable area. It’s a factor that should be taken into consideration when looking where to invest your money. Ask yourself what companies are there close by, how far is the property from the train station, whether it’s well connected to a motorway, and other transport questions.

Looking at the opportunities within a local area should be a step you take too. For example, if a big company announces it’ll be relocating its headquarters, it could be larger profits to snap up properties that will appeal to workers taking those new positions that are about to be created or relocating to continue in their current role.


With work a key factor in the moving decision for many homebuyers, it highlights just how important it is to mention the attractive qualities of your project in terms of commuting in your listing. Mentioning excellent train links to a nearby city or a double driveway and easy access to the motorway could be just what you need to encourage potential buyers to view your property for themselves.

We aim to deliver much needed capital to start-ups and SMEs

Call Now +44 (0) 203 2909019

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