Virtually everyone on the planet will be in some way involved in at least one property deal throughout their lifetime, and every single one of those people will be looking for something different every time.
According to renowned property investor Vincent Wong, the secret to arranging the best property deals is to figure out a way to ensure involved in a particular property deal gets what they want. He advises the following:
Deal With Motivated Sellers
“At any given time, there are millions of people around the world who want to sell their property quickly but don’t know how,” Vincent explains. “If you find the ones who are motivated to sell and deal with them directly, they will give you a much bigger discount if you can persuade them that you can buy the property quicker than if they leave it on the market indefinitely with an agent.”
Situations that produce motivated sellers include divorce, inheriting a property that comes with inheritance tax, migration to another country, or loss of employment.
Vincent advises, “Learn how to approach sellers directly, find out about their situations and give them the certainty of a transaction. This will enable you to buy the property for much less.”
Provide An Alternative To Estate Agents
“An estate agent’s primary motive is to get as much as possible for a property,” Vincent explains in Property Entrepreneur: The Wealth Dragon Way to Build a Successful Property Business. “They are not motivated to get a quick sale or a deal that helps the seller’s circumstances.”
“They are not motivated by the seller’s needs at all. All the estate agent cares about is getting the highest price for that property and pushing the market up, because both are good for their business.”
Unsurprisingly, the self-serving attitude of estate agents puts some people off. “Many sellers approach me because they simply don’t want to deal with estate agents,” Vincent says. “Some of them have had bad experiences in the past and can’t waste any more time. For example, the estate agent might say their house is worth £200,000, but how do they know if and when they will get that figure?”
“When people can’t afford to wait around for an estate agent to them the full market value, I can help them move on with their lives,” Vincent explains. “I can make money, and I can help them make money in the long run.”
Deliver What People Are Looking For
In his book Property Entrepreneur, Vincent outlines a hypothetical situation where a seller wants to release the equity from his property to invest it in a business. However, he needs that money within two months, or the business opportunity will disappear.
So Vincent makes him an offer to pay off his mortgage and provide him with £60,000 in cash to invest in the business opportunity. In this scenario, the seller could have put his property on the market with an estate agent and got more money for it. But Vincent provided him with the certainty of a sale, and he happily agreed.
Help Other Property Investors
“I add value to property investors who want to do deals but don’t have the time or the know-how to source deals,” Vincent explains. “If I flip a deal to an investor worth £40,000 in equity and they pay me £10,000, I get my money, but I have added great value to the investor’s portfolio by helping them gain £40,000 in equity (for the price of £10,000).”
“The investor didn’t physically do anything at all, except take my phone call and read and agree to the terms of the deal.”
In the scenario involving the seller who wants to invest in the business opportunity, if Vincent does not want to add the property to his own portfolio, he can go to an investor who has cash to invest. That investor will then pay Vincent £10,000 for finding the property and gain a valuable asset well below the asking price. This kind of arrangement is what Vincent calls a win-win-win.
If you would like to find out more about Vincent Wong, check out his Instagram profile.