New to property investment

[NewOrleansHomeBuyer]

Can someone please guide me in property investment as I am very new and inexperienced in this field?

I have very little savings which I am thinking of investing in buy to let property. With my savings it is difficult to find buy to let property that cover 25% deposit and after long search I have managed to find some studio apartment inside student hall in Birmingham exclusively for renting students and those apartments are managed by the university or other third party private company.

Those apartments have shared kitchen with own bedroom with ensuite with long lease.

I was told by the selling estate agent that there are approximately £3000 per annum charges on those apartment including ground rent, service charge and full management fees including finding student.

The rent will cover the cost of interest only mortgage, ground rent, service charge and management fees.

My goal is to sell this property back in 5 -10 years time for profit. . Do you think it is worth investing on those properties? If I have to buy normal property, it will take me another 2 to 3 years to save deposit.

Those properties are very cheap and affordable for me and am wondering if there are any loopholes although selling agent will not disclose any information. Has anyone had any experience or knowledge?

I am not sure if people wholesale in the UK, it is big in the USA where I am based. This is a great way to start to get into property as it doesn't require much cash. You basically play the deal finder role and market to find off-market deals. The idea is to target distressed homeowners. People who are facing foreclosure, have houses that need lots of repairs, tired landlords etc. You find the homeowner, negotiate a deep discount for a fast cash transaction. You can then assign this contract to another investor who has the cash to close. You assign it to them for a higher price than your contract and you earn the spread. You need to build relationships with buyers so that you can perform on the contracts you have. This is a great way to learn the market, meet and build relationships with active investors and earn capital so you can start to take down your own deals.

 

[mattThoma5]

Hi John15,
I know you wrote your piece 6 months back but I'm a new member and not yet a professional but I've been reading and listening to a lot of professional opinions over the last 12 months or so. I'm getting the impression that there are a lot of new purpose built student accommodation being built these days and are high spec and rent only, owned by massive insurance companies where the facilities are top notch. The biggest problem I've found through digging around is the exit strategy. You're options are limited to selling to people interested in student accommodation. May be difficult to sell on. Just a thought. Would like to hear if you've made any progress?

good luck in any case

matt

 

[Kevinbratch]

New world of real estate investments?
It’s Foreclosure investment properties. Well the tricky thing is that most investors don't even realize there are specific things you can do to get started investing in Foreclosure real estate and find profitable deals easily. Unlike hoping you find a real estate deal that turns a decent profit that you have to battle other investors to get, here is a clear path to success in foreclosure real estate investing!

 

[Longterminvestor]

Hi @Kevinbratch

What is your strategy for finding foreclosure properties to buy?