How To Make Money From a Property Chain

A Property Chain can be the traditional vendors and the traditional buyer’s worst nightmare. They can become a slave to a chain which they have no power over whatsoever. However, for the astute property investor or property developer the chain can open up doors that might otherwise be closed tightly shut.

For example; if a couple were selling their house and they were in a chain, but at the last minute the person buying their house pulled out. Their purchase of the new house they where planning on moving to, might fall through if they didn’t find a buyer for their current property quickly very quickly.

This is the sort of situation where a property investor can come in and save the day by rescuing the chain. This is especially true if the investor is a cash buyer so can buy the property extremely quickly.

The vendors could be desperate, because they don’t want to lose out on that dream home they have planned, and that is exactly what will happen if they don’t manage to sell their current house ASAP. So, if you can come in with cash and can do the deal very quickly without hassle, they will probably accept an offer from you that is way below market value.

Your offer will probably much more be appealing than someone who makes an offer but who is involved with a chain themselves. In this situation your offer will probably be even more attractive than one from a first time buyer who needs to go through the red tape sometimes associated with their first mortgage.

You are the hassle free option that means that they can still move to their dream home. So they don’t get as much as they would have liked for their current property, but the truth is they are probably getting a damn sight more than they paid for it years ago. In this situation you would be setting yourself up as what is called a property chain angel. Some property investors make quite a good living from doing a lot of deals like this.

The key to being a property chain angel is to get 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. This is a win, win, win situation as the seller still gets to sell the property and move, the estate agents still gets their commission from the seller and you get a property on the cheap.

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