Property investor stories
As far as property investor stories go, this is one of the best. If you are looking for something to inspire you to be creative, watch this video. If you know somebody who is a clever, entrepreneurial type of person, send them a link to this post. In this clip, Samuel describes the situation of his 2nd property purchase. It's merely a recount of what happened, it's in no way meant to encourage you to do the same.
So, Samuel bought his first property at age 17 (this is well documented). He spent the next year struggling before making a second purchase at 19. When you're making an offer, always give a specific number. This is what he did on this occasion and it worked. He offered £62,500 and the owner only asked for it to be rounded up to £63,000. It's a psychological trick which often works.
Starting With No Money
After the offer was accepted, the estate agent asked him to prove that he had the funds to take the property on. They requested a proof of deposit to the tune of £13,000. Of course, he had no money. He had spent all of his income on basic living expenses and seminars/ networking events to further his business. In order to take the property off the market and get the deal processed, he needed to show a screenshot of £13,000 under his name.
He decided to call his brother, Russell who happened to have £10,000 + a £3,000 overdraft. After much pleading, he agreed to send Samuel the money on the basis that he returned it soon. It was sent, Samuel took a screenshot of his new bank balance and then immediately refunded his brother. Unethical? maybe. Entrepreneurial? undoubtably.
The estate agents accepted the proof and the property was taken off the market. Of course, Samuel knew it would take 2-3 months for the deal to complete anyway. That meant he could spend the next 2-3 months networking to raise the finance and really have the money ready to take the property on.
Find out what happened next by watching!