Everyone loves a deal.
However wealthy you become, I doubt the thrill of getting something for less than it “should” cost ever wears off. I mean, the other day I got £10 off a jumper I was going to buy anyway and it was pretty much the highlight of my week.
The world of property is no different…except in property, getting a deal can be critical to your success rather than just a feel-good moment.
For our purposes, we'll define “a deal” as being at least one of these three things:
And the hunger for deals is…well, it's quite something:
This leads us to an obvious-but-important conclusion…
If you have the deal, you have control.
You can turn that deal into money.
You can use that deal to attract money.
Or you can turn that deal into a second (and maybe third and fourth) property without having to raid the piggy-bank again
(Don't worry if you don't totally grasp what I mean by each those three things…there's more detail coming up.)
Now: If you've got plenty of your own cash, finding a deal is optional. For example: if you have £250,000 in the bank and you use it (with mortgages) to buy £800,000-worth of property, even without getting “a good deal” you can expect to make over £50,000 per year in income and have a portfolio worth at least £1.5m in 20 years' time. No deal required.
But if you don't have much in the way of cash? Getting a deal is mandatory. It's still not enough on its own, but it's the only way you'll stand a chance of building up a portfolio.
Remember: deals are a currency more valuable than money. As those Facebook messages I pasted in demonstrate, there are far more people with money than there are people with deals. And whatever is scarce has value.
Are you with me so far?
If so, you're probably asking yourself the logical next question.
Glad you asked.
The good news is that it's not by transforming yourself into a property expert. You don't have to spend years schmoozing every estate agent in your area, learning every last detail about property investment and memorising the layout of every house on every street.
(You can do that, and it is actually the best way to get deals – but you don't have to.)
The bad news is that it's still not easy – I'm not about to give you a link to some top-secret website where all the deals are listed. We need to know each other a bit better than that first. (Only joking: that website doesn't exist…does it?)
It's not easy, because you have to develop a whole new skill. And it's probably not what you're thinking…Continue