How to Find Best-Priced Property Deals -Without Going to Auctions [SPONSORED]

BY CARLO MARIANI

Acquiring properties Below Market Value (BMV) is a critical part of our methodology to ‘Fast Track Your Property Success’. The big question is; “Where are the sweet property deals?” This is a question that eludes many property investors.

It is important to appreciate that a ‘sweet’ property deal is not only defined by its purchase price alone, but also by the Terms and Conditions (T’s & C’s) of the Offer to Purchase (OTP) agreement.

Auction route

Let me admit upfront I’m not the biggest fan of auctions. Quite a few aspiring investors believe that auctions, whether public or sheriff auctions, are the best place to find best-priced ‘sweet’ property deals. The reality is that many investors venture themselves into a bidding process at auctions generally without achieving the best results and returns. While ‘bargains’ can sometimes be found at auctions, it is more important to have comprehensive knowledge of the inherent risks and an understanding the T’s & C’s of bidding at auctions.

One of the main reasons for my hesitance to buy at auctions is that I want you to write an OTP that minimizes the risk in the deal for you, the buyer. The seller (in conjunction with the agent/intermediary/facilitator) tends to be protected first before all the buyer’s needs are considered. In our exclusive Property Mastermindsessions, we show you how to change that in your favour.

Two major risks that stand out for me at auctions are:

  1. Firstly, aroundrouwkoop(liquidated damages) and
  2. Secondly, the inability to guarantee that vacant occupation will be granted unconditionally (unattainable in many ‘standard’ auctions).

Terms of bidding; the high costs of evictions and litigation, as well as the uncertainty around lending policies in South Africa should be duly considered before bidding at auctions.

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TheRouwkoop clause comes from common law. The word is derived from the Dutch words meaning‘regret’ and ‘purchase’. In essence, it is a clause in an agreement that entitles a party to that agreement to pay an agreed sum of money in order to be allowed to withdraw (or purchase his/her freedom) from the agreement.

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If you are not getting BMV deals and want to look outside of the auction arena, I would like to give three practical tips (success hacks) and strategies for you to implement:

Success Hack #1 – Embrace Rejection

Unless 90% or more of your OTP’s are not accepted, you are simply offering too much for the property. Getting properties BMV is a combination of quality and quantity of sourcing and marketing activity. Embrace the rejection of getting a lot of NO’s to your cheeky offers is a sure way to move you closer towards more great property deals.

Success Hack #2 – Use the 1% / 99% rule

Success Hack #3 – Be likeable and Trustworthy

Renowned writer Bob Burg once said, “All things being equal, people do business with, and refer business to people they know, like and trust”. So how are you making sure that you are on the ‘Black book rolodex’ of real estate intermediaries when they come across those sweet deals that you want? Even if you have lots of cash and/or finance lined up it is not a guarantee of securing the deal. Always be one of the more likeable, approachable and trustworthy investors and ultimately you will be amazed that you will attract many more deals to come your way.

I leave you with one of my favourite quotes, “Fix your course to a star and you will navigate any storm.” – Leonardo Da Vinci.

SOURCE:ThePropertyCoach.co.za

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