Copyright (c) 2007 Property Horizons Group Ltd
It's true what they say- money does not bring happiness. But one thing that does for me is to teach people from all walks of life, just how they can become financially independent though property and real estate investment.
And do you know what the most common questions is? It's this:
"Robert, I don't have thousands to pay for a deposit or nonpayment on a property."
The thing is, many people are in the same position. They know how great property is as an investment, but they feel that the fact of a large amount in the bank means that they cannot invest in property.
Well today I am going to show you that this is not true at all ' in fact anyone can buy as much property as they want without a penny of their own money. So here are my insider top tips how I am my team do it'week in week out!
Method 1-Key Worker Grants
The government starter home initiative is aimed at key workers, such as firefighters, nurses, and teachers, who cannot normally afford to buy houses in the areas that they work. The scheme is administered by community housing associations. who offer interest free loans to top up a mortgage and help with buying property.
Not living in the UK? Check our your citizen information office and I am sure that hey can tell you if such a scheme or system operates in your own country!
Method 2-The Credit Card Secret
It is possible to obtain property with no money down using readily accessible zero interest credit cards.
If you are looking to purchase low cost properties, then this can be done by using credit cards. To do this, you simply apply for a credit card who issues associated cheques, such as Barclaycard or Citibank. There are many of these to choose from.
Remember that anything and everything in life is negotiable. That means that if you think that that the credit limit on your card is low you can ask your bank to increase it. The thing to remember here is that they want YOUR business and they are a lot of hanks competing for it, so they will probably be more than happy to do this for you.
You can then use these credit cards to wither pay for deposit and then get a mortgage for the rest, or if your balance is high enough, the entire property.
Now that you have done this, you will need to get another credit card so that you can use their special introductory rate.
After about 5 months, you then apply for a third credit card offering this introductory rate.
This may sounds crazy but I have done it about 30 times and it works every time!. In fact many investors used this idea to make their first property purchase- I know I did!
Method 3-Borrow Against Your Other Assets
It is normally possible and quite straightforward to borrow money on the strength of assets that you already have. This can be used by the bank as security and so enable you to get a full 100% mortgage.
Let me give you an example. You can get a 95% mortgage from a bank, but instead of using your own money to pay for the 5% deposit, you borrow it form the bank. Most banks are happy to do this.
If you already own a property, you could also use a refinance option to release equity and then use this to pay the deposit. This is a favourite of many of the Buy-to-Let landlords (though this only really works in the properties are continuing to increase in value.)
Method 4-Form A Property Buying Syndicate
Here is a way of actually getting a property for nothing. What you do is put together a syndicate of people who will provide the money for an investment, or maybe just the down payment.
Imagine that you are investing in a property that is worth ₤90,000. You only need to find 9 people, each of whom put in ₤10,000. As the tenth person in the syndicate, you don't have to put in anything. This is because you have gone to the trouble of attracting people to the syndicate and putting the deal together.
Since property investment is such a good investment, and more people are now realizing that, finding and creating a syndicate can be quite easy.
A word of warning though, it is vital that the syndicate is set up properly and legal help and advise sought.
Method 5-Ask Someone To Act As a Guarantor For Tthe Loan
One option, if you can't afford a deposit, is to take out an unsecured loan. But if the bank finds you unsuitable, then one solution is to find someone who will act as guarantor for the loan. This can be a relative, aren't or friend.
In most instances the people who use this method may rent out part of their property to help pay the mortgage.
Remember, the UK government allows you to earn ₤4,250 a year tax free from this!
Method 6-Get A 100% Mortgage
These types of mortgages are very useful as you do not need to put down anything at all for a deposit. Although they are becoming more common in the UK, there are some drawbacks with them. First of all, they tend to have quite specific criteria for the people they are available to. The normal criteria for this is your age or the amount of money you make per year. Furthermore, you might not be able to use them as a buy-to-let property.
These types of mortgages are almost unheard of in overseas property. So if you do find one, then that is an initiator that that investment might be worth checking out.
In Summary'
So there you have it. The six methods I teach and practice to buy property without any of your own money.
These methods are not just fantasy. They can been perfected by me in the last few years and I still use them now to buy several properties every single week. In fact some of them have overtaken me! It's a great feeling knowing that the student overtakes the teacher- believe me.
The great thing it that by buying with "Other People's Money", you get to maximize your return on investment because as you know the less of your own money that you put into a property, the higher your return.
And when you invest none, your return could be 500%, 800% even over 1000% in a single year. Try doing that with stocks and shares!
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From bankruptcy to Multi Millionaire in 5 short years. Not only is Robert Gavin one of the most ingenious property experts, but he also shares his experience and skills with other people.
To get your FREE Millionaire Property Course and find out how Robert Gavin and his team can help YOU become a Property Millionaire, go to:
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http://www.propertyhorizons.co.uk
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