No money down is a popular term in the property industry, but many will argue that any type of property investment requires some level of capital to begin with. So, is it really possible to make a profit from properties you don’t even own?
One of the most popular ways to get into property without any investment is deal sourcing and packaging. This strategy relies on identifying property investment deals and selling them to investors to earn a sourcing fee in the process.
Once you feel more comfortable with your property knowledge, a more advanced strategy to look at is Assisted Sales. This property strategy creates a win-win situation for all parties involved. It begins with finding a tired property that is struggling to sell and offering assistance to the vendor. Exactly what Nadia from Sourced East London did, soon after joining the Franchise and attending a selection of training events.
“The training covered all property strategies and the support has been fantastic in terms of always having someone on the other side of the phone to advise me.” Nadia admits.
The franchisee came across a property in need of a refurb, which had been on the market for a long time. Together with her JV partner, Nadia refurbished the property throughout, generating a huge uplift in value. By doing so, the house became much more desirable and sold within a week – generating a substantial profit, while providing a faster sale and income for the vendor.
A ‘no money down’ deal can also be achieved by utilising your professional network and managing projects. An example would be the refurb and reconfiguration project by Jamie from Sourced Wandsworth, located in the charming village of Dulwich in London.
The franchisee planned to use Sourced’s funding facility to carry out the project himself, until one of his investor contacts offered to purchase and pay for the property refurb, and share the profit in exchange for Jamie and his business partner’s management services.
The current layout of the property is dated and quite impractical. By refurbishing the apartments and reconfiguring the layout, the value of the property will increase significantly, allowing to generate a decent profit on the sale of the apartments and increase their rental value.
“Sourced have been amazing with the training I’ve attended but also the networking opportunities they provide.” Jamie says. “Not only do I get to work with other franchisees, but I also get access to investor connections, which is how I met the investor who purchased the property.”
Once the refurbishment is complete, two flats will be sold on the open market and the third one will be kept by the investor to benefit from a strong rental yield.
Sourced can help you to start or grow your property business. Download our Network Prospectus to find out more.