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Monday, August 27, 2007

Buy from a motivated seller

In the world of property investors its a well known fact that 95% of the people buy and sell properties for reasons that are not compelling enough. They sell to cash up when not in dire need of money, or to sell one and buy another following a tip, sell property to invest elsewhere and so on and dear reader this is the mass chunk that we need to avoid.

As stated earlier a lot of money is made at the time of buying, also in the mind since properties are prices in hundreds of thousands and millions and reflect more value then peanuts by any means, small amounts like a few thousand do not matter a lot. As an investor you would go through a number of properties before zeroing down one or two and after this write up the factor to zero down would be more towards the circumstances then the actual property. Remember you are an investor and not every property you buy is to be used by you as your primary residence or office space. You must shop around for property sellers who are willing to sell it for meeting commitments rather then those who just wish to sell. Once you find out the motivated seller, negotiating a better price become all the more easy. I am not one of those who is suggesting to absolutely exploit the seller but remember you are interested and a property at a given price may be negotiated for a few thousands or ten thousands less then its market value, Your price offer is still better then the next best offer available if any so both the seller and the buyer are into a win win situation. This is great opportunity to buy something of certain value for much less then its worth and the difference in price and value instantly ads to your net worth. Do it a few times and then you can talk to your banker with a straight eye in his / her face rather then look down when you next need a loan. Banks respect and give importance to people who already have high net worth. This tip if used can make you an important client at your bank of choice.

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