In This Issue:

- A Note from John:  Another year already!

- Feature Article:  Show Me the Money!

- John Recommends:  Three excellent resources to share with you this month!

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A Note From John

Hello!

Welcome to our newsletter, which aims to give tips, advice, help and information to those interested in the BMV Property Investing Market. Whether you are a past, present or future client, we hope to add a short burst of information, resources and energy to your inbox once a month. We really appreciate your feedback so do please keep it coming.

Here we are into the throws of another year already. I’ve got some great resources to share with you in this month’s newsletter (see below), and would also very much like to invite you along to the BUMPER Property Meeting I am hosting in Milton Keynes on Tuesday 27th January. For more info on who will be there just click here. Hope to see you along there too.  Meanwhile be careful you can raise the finance for your deals that you think you can (see main article) and have a great month.

Regards,

John

Feature Article

Show Me the Money!

The hot topic of the day continues to be finance, but with a different twist this time round. As the credit crunch/recession (call it what you will) deepens, there are without doubt more motivated sellers than ever – many of whom would benefit from a BMV property deal.

So surely with there being plenty of deals to do, and the availability of investor finance options somewhat stabilised once more, isn’t every investor out there buying left right and centre once again?

Well on the surface of things you’d think so. I’ve had several conversations with investors making all the right noises and maybe with every intention of buying – but found few who have actually put deals through.

I’ve made no secret of the fact that my personal strategy is to take few risks this year and instead concentrate on replenishing our cash reserves after our house move, whilst also really building up my existing residual income streams throughout 2009. In property I have no particular desire to buy anything this year though always open to no brainer low-geared properties that I can let as HMO’s for good cashflow or place with the Housing association for guaranteed rent/no hassle land-lording. Put it this way, I certainly haven’t allocated a marketing budget for my property business this year!

However, a half decent deal came my way in the last week and whilst not overly motivated to do it, I was conscious of the ever changing money markets globally right now and had heard whispers that lenders were changing their lending criteria substantially – particularly in relation to credit scoring. I therefore submitted the deal to test the water as much as anything else and was annoyed, but to be honest not overly surprised, when we were turned down by the lender. Talking to other investors in person and on PIPA, I can tell you we are far from alone!

The main issue is that criteria that previously made you a good credit worthy risk – such as having an existing portfolio and therefore numerous existing loans – now makes you a bad risk as you are considered to be over exposed.

Having always held an impeccable credit rating, being turned down is not something that has happened to us before and I confess it does leave you reeling a bit at first as the old ego calms down. However when you think about it, it's hardly surprising that the lenders have reacted to the global financial problems in this way, and like every obstacle you and I have had put before us as investors, I am sure it will be overcome in time. Once good brokers get to understand the new credit rating system I am sure the number of loans authorised will increase sharply once again.

If you are cash rich or have cash rich investors, then what the heck! It’s party season out there. Otherwise my advice is to not take it for granted that you will be able to get the finance to do deals, and be cautious in your offer making. Apart from anything else, there are many, many desperate vendors out there praying for a solution to their worries – surely we have a duty of care to manage their expectations carefully and not go making promises we cannot necessarily keep!
 

John Recommends

I have 3 excellent resources to share with you this month:

www.TenantPerformanceBond.com

This comes highly recommended as an alternative to the new Government's Tenants Deposit Scheme. It’s very simple to set up your bond and the scheme offers:
 

• FREE Tenant Vetting

• Insurance against Rent Loss, Tenant Damage and Legal Fees

• No need to take a deposit – pass cost of the Credit Check/Bond on to tenant instead

• Increased response to your adverts when you advertise “no deposit required”
   

N.B. This is not an affiliate link and I am not associated with the product in any way

HMO Survival Guide

It’s my belief that if you’re interested in making money in property in 2009, then HMO’s need to be part of your strategy and you won’t find a more straightforward and honest guide than this one – and the best bit is it's available for $7 or around £4 to me and you!

So for the cost of a fast food meal, you can get your hands on the latest information and a fool-proof 90-day plan to get you kick-started with your HMO business.

It's not for everybody but if you’re prepared to put in a little hard work now, then 90 days from now, you could be the proud owner of your first HMO making you over £500 profit per month. For £4 it’s an absolute no brainer and I understand most people are snapping it up.

Now in the interests of full disclosure, this recommendation is an affiliate link, but first off, I’d recommend the guide anyway. I mean 30 pages of specific HMO info and an action plan for just £4 has got to be worth the investment right?

Secondly I really don’t need my affiliate cut of £4 that badly, LOL, so if you prefer just do a Google search for HMO Survival guide and buy it directly.

Otherwise here’s the link again HMO Survival Guide

www.PIPAforum.com

Wondered where all the serious property people are hanging out these days? Take a free 7-day trial of my exclusive Property Forum to find out! I set the forum up nearly 2 years ago now to cater for investors who require a more personal yet friendly place to network, share resources, hear of deals, and debate the current market place. In fact that’s where I heard about the tenant performance bond mentioned above!

I don’t tend to advertise the forum too much but we have a few memberships available at the moment so don’t miss out - get your free 7-day trial now by Visiting www.PIPAforum.com

About The Property Investor PA

www.ThePropertyInvestorPA.com is a dedicated UK support service for Below Market Value Property Investors. Established in 2006, we specialize in helping you with the time consuming parts of your property business – leaving YOU to get on with doing the deals and running the business. Visit our website to read case studies and testimonials plus download our free brochure.