How to buy investment property

Broadly speaking, there are two basic ways to buy investment property; conventionally and non-conventionally. 

Buying Property Conventionally

Buying invetment property is different to buying a new home for yourself in so far as there should be no emotion whatsoever; you should only buy investment property if the figures work out. ie the ratio of mortgage to rental income and letting agent fees is within your pre-determined confines.

I have listed below the necessary steps needed to find an ideal investment property. There is a mountain of information around each point which has been ommitted for fear of writing a whole book on this web page ! That said, anyone with an ounce of common sense can do this and if the order noted below is ahered to, they wouldn't go far wrong.

Decide where you will buy taking account of rental demand after speaking with Letting Agents;

Look for properties that fit your criteria and do initial calculations regards rent versus mortgage;

Draw up a shortlist of properties that fit general and financial criteria and view them;

At each viewing take notes of what remedial work may need undertaking prior to letting;

Contact the letting agent when you have a chosen property and insigate any improvement work;

Source mortgage and insurances;

Create a contingency fund of between 3 to 6 months mortgage payments.

Buying unconventionally

Like many, I have purchased investment property the more conventional way and looking back I found it to be very time-consuming; at times, frustrating and even though it was worth it in the end, had I been in paid employment (with all the time restictions it often brings) it would have made the process even more difficult.

Three years ago - at a mortgage & property seminar - I found out about a "new breed" of business that had emerged; property clubs and more to the point, Property Consultants.

Property Consultants are well-connected individuals, usually have substancial property portfoilios of their own and purchase property on a professional level. What does this mean ? In short, very often your Property Consultant will be offered property by the "job-lot"; at "wholesale" if you like. In turn they will be able to structure a purchase on your behalf with genuine discounts off the open market value. And with correct mortgage placement this can mean little or no deposit is necessary.

Thesedays I use a Property Consultant to purchase all my investment property. He sources the property, arranges the management of it - including tenants - and works specifically to within my predetermind strategy on a one-on-one basis. The only thing I have to do is fill in papers when a suitable property comes along. All necessary due dilligence is undertaken for me, though I have the right/option to do my own if I so wish (but I don't).

If you are fortunate enough - as I have been - to find, or be introduced to a genuine business/individual within this business sector, you're happy to pay a little money on account for them to act for you (under contract), then I'd say just sit back and enjoy the ride to medium / long term wealth.......... and from very little effort on your part. Do be mindful, however, that some services are better than others and that property clubs (in general terms) will only help you source a property; everything else would be up to you to check and source.

For a short while, my personal Property Consultant has allowed me to introduce just a handful of private (serious) individuals and if this is something that would be of  interest to you, please read this. You will see I have created what I have called my "Private Client Service" and subject to you wanting to be personally  introduced to my Property Consultant, it could be done. However, please be aware that this offer will (inevitably) be withdrawn at some point so please check with me at philip@hml-business.com first.