Archive for

Property Investing – How to Make Money in the Property Market

You already believe property buying works as an investment or you wouldn’t be reading this. You may be brand new to property investing or you may have some experience in other niches of property so let’s start by being clear on exactly what the Below Market Value (BMV) niche is all about and why it works.

In a nutshell it’s all about identifying distressed sellers (often called motivated sellers), and looking for a way to help solve their problem, that will also be profitable for you. You will often hear this called a ‘win-win’ deal.

The trade-off for providing the homeowner with a solution is that they will agree to sell their property to you at a discount to Market Value. Most investors in the BMV niche will be looking for a minimum discount of 20% in order to make the arrangement profitable. Clearly selling their home for only 80% of its market value is not going to be attractive or feasible for everybody – hence the need to work only with suitably motivated sellers.

The most common reasons for a seller to be motivated are due to a broken Chain, divorce, emigration or Re-possession, amongst others. The fact that we can offer to buy their property quickly without the complication of a chain can be very attractive if the motivation level is high enough.

The potential rewards in any deal for us as the investor can be:

* Instant Equity

* Long Term capital growth

* Rental income (often called ‘Cashflow’)

* Or even Cashback on completion of the purchase, if the discount was big enough

The biggest hurdle facing BMV Property landlords over recent years is Cash flow. The aim is to buy a property and to be able to have enough rental income to pay off the monthly mortgage debt, service costs such as repairs and insurance, AND still make a profit each month. But whilst Property prices have shot up, rental figures have not. This means often deals do not ‘stack up’ and increasingly it is necessary to achieve a greater discount at the outset to make the deal a win-win for the investor.

Building in this profit from day one also lessens the risk involved. Property is very forgiving in that history shows that it always increases in value over the longer term. Buying at a discount of 15-20%+ means that even if there is a crash in property prices, a BMV investor should not lose out should they need to sell a property on.

Another important aspect of the BMV property market is that more than ever it is about people rather than property. The vendor has a problem and if you can provide the right solution then he or she will want to do business with you. The property is merely a vehicle at the centre of the transaction – it is the people side of things that underpins the whole thing. As with any transaction, people buy from people they know, like or trust. For this reason it is more important that a BMV investor has excellent people skills than detailed knowledge of the property. You are more likely to be dealing with the vendor directly, and very frequently, throughout a transaction compared to traditional property sales and purchases where solicitors and estate agents tend to do all the liaising for the interested parties.

In summary, buying property only from motivated sellers, in an ethical way, works because it allows you to help other people whilst lessening the risk to yourself by building in your profit when you BUY.

(c) 2008 John Rattigan

Buying A Home – Zoning and Architectural Review Board Restrictions

When you buy a home, you need to be aware of the various things that can limit your control over the property. This is as true for finished lots and single family homes as it is for townhouses, condos, and apartments. It’s a good idea to understand these limitations before you buy, so that you can decide whether you’re willing to live with them or not. After you buy, it’s too late; you’re stuck.


In most jurisdictions, zoning limits how a piece of property can be used. There are many variations of residential zoning. In some, no business activity is permitted. Some allow business activity but no signs. In some, no commercial vehicles can be parked regularly.

Some residential zones permit only a single dwelling per quarter acre, per acre or per ten acres. Most limit the owner’s ability to subdivide land. Some allow only single family dwellings while others allow high rise apartments. Still others allow apartments, but limit the height of apartment buildings. Many do not allow mobile homes.

Some jurisdictions have “overlay districts” in addition to zoning. These are common in areas with many older buildings and a community desire to preserve them. Additions to homes of this type are obviously restricted, but restrictions regarding the location, style, height, and even whether they’re allowed at all or not, also applies to fences, sheds, walks, gates, and similar ancillary structures.

Fredericksburg, Virginia has a forty block “historic district.” Residents of this area must follow normal zoning rules. However, they must also submit an application to the Architectural Review Board for any changes to the visible exterior of their homes. This can be a surprise for some new homeowners in the area.

You can find detailed information about zoning, overlay districts and the like fairly easily. Simply visit the courthouse for the county in which the property is located or ask your real estate professionals for assistance.

Connecting Debt Settlement Back End Processing With Property Casualty Insurance

Property casualty insurance provides coverage for houses, vehicles and enterprises, where property insurance protects against the loss of physical property or the money derived from it, although casualty cover safeguards from liability for loss caused by damage or injury to another person or their property. Property casualty insurance could be either for business reasons or for personal purposes.

Commercial Property Casualty Insurance plan

Business property casualty cover policy is the word for insurance coverage that companies may use to take care of their risks. It is necessary for almost any entrepreneur or firm because it protects everything from the loss of equipment to liability and even the loss of profits because of unexpected situations.

Property casualty insurance is readily available for basically any type of associated risk that the business may experience. There are numerous insurance policies out there but the fall under a number of general categories.

General Liability Insurance will take care of any costs related to mishaps, injury and neglect. In other words, the business will be covered against having to make payments that result from damage to property, medical expenses, slander, libel and much more.

Product liability insurance coverage is suitable for businesses which deal with commodities from manufacturing to selling, where they may be liable for the safety of the merchandise. It is intended to protect against any liabilities in which a defective merchandise may cause injury. The coverage required depends enormously on the goods the business is producing.

Commercial property insurance protects against the loss or damage of any kind of company property, right from buildings and machines to the loss of income. Any loss caused by unexpected incidents like natural disasters, theft or vandalism is included under this type of property casualty insurance policy.

Professional liability insurance coverage is mainly for businesses giving services and safeguards the firm against errors, negligence and malpractice, among other things.

Home-based business insurance plan handles losses for enterprises which are run out of the home. A general home owners insurance policy doesn’t safeguard against business enterprise losses, particularly loss of income.

Personal Property Casualty Insurance

Personal property casualty insurance policy is the term for any type of insurance that protects the assets of a non-public individual, in addition to protecting against liability for damage caused to other individuals property or injury. Car insurance and homeowners insurance are usually considered to be personal property casualty insurance.

Most car insurance plans pay for both liability and personal loss and will provide coverage for any professional drivers that were granted permission to drive the car, including but not restricted to the spouse and relatives living under the same house. Most policies include damage to the vehicle a result of accident along with other scenario such as vandalism, floods, fires and hail.

Home owners insurance plan is a bit more complicated since there are a number of supplementary policies one can take out since most of these property casualty insurance plans do not cover all unforeseen situations. For example, flood or earthquake protection will have to be taken out under a different insurance policy. Most home owners insurance policies include the structure itself, the contents and several personal liability.

Debt Settlement Back End Processing is guaranteed to help you in case you chose the wrong insurance policy. Just like any type of insurance policy, comprehensive analysis is mandatory to find out the most suitable kind of property casualty insurance plan, regardless of whether for business or personal purposes.