Find Below Market Value Property - One Key Tip!

On this web page we will discuss how to find below market value property.

Many of the T.V. shows and numerous investors are focused on things like auctions. Hence auctions can cease to be the great bargain venues they used to be back in the 1980s and 90s.

However, what we are focusing on today is on becoming what is called a "Chain Angel." What this basically means is that you rescue broken property chains.

Being a chain angel can be a fantastic way to find below market value property.

What is a broken chain? Generally speaking it is when there are a group of home buyers and sellers in a chain each depending on someone else in the Chain to either sell or buy theirs or another property so that they can buy the property they want.

A chain can be any length from two people to ten or more. If one person in that chains house sale falls through it can throw the whole chain into disarray and cause it to collapse. This is when you as the property investor can be in a position to find below market value property.

A chain angel is basically someone who can step in at short notice and purchase the property, which is at risk of being the broken link in the chain. For example:

Bob is selling his flat and he is in a chain but at the last minute the person who was supposed to be buying his flat pulls out of the purchase. Bob begins to panic because if he doesn't find a buyer Soon he is in grave danger of missing out on the purchase of his dream house which is due for completion in four weeks time. But Without his current flat being sold he will be unable to complete.

This is were you as a chain angel would come in and fill the gap, and purchase his house - for of course - below market value. Bob may be selling it to you for thousands of pounds less than he had already agreed to sell it to the person previously but by this stage he is prepared to live with it rather than miss out on his dream home or have to go through another twelve weeks of showing people round his flat again.

Some property investors and developers make a very good living by doing lots of deals like this.

The key to being a chain angel is to have good working relationships with as many estate agents as possible so that if a chain does break down and they know the seller is desperate to sell then they will be straight on to the phone to you as a first point of call.

Having great relationships with the right estate agents can be crucial to helping you find below market value property.

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This is a win win win situation as the seller still gets to sell the property and move, the estate agent still gets their commission from the seller and you get a property on the cheap.

If you want to set yourself up as a chain angel you must make sure that you can complete on sales very quickly. So, you either need a huge cash reserve for such purchases or you need to have the ability to get your hands on the money very quickly whenever needed.

Flexible mortgages or wrap around mortgages can be great for being able to get your hands on money whenever you want to. A good mortgage broker can help you find the right type of mortgage for you that will help you to release equity as and when needed..

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