The fundamentals buy the property not the deal

Remembering the property is key!

This is one of the most important invesment guides, it’s probably one of the most frustrating things about my life, watching new investors (and old which is very scary) buying property based on the deal.

Buy the property

The only thing you should ever buy in property is the property, and that property should be based on good solid fundamentals – shops, schools, transport links, major employment and major investment. Only after you can guarantee that you have good solid fundamentals should you even consider how you will structure the deal.

Not the deal
Yet so many people I see are so focused on the deal. They say to me “I only want no money down”, “I only want cash back” when really they should be saying “I only want property with good solid fundamentals”, “I only want property with shops, schools, transport links, major investment and major employment.”

I can spot an experienced investor from a mile away just by this one simple point. I would rather put $100,000 into a property with fundamentals than get a cut-price deal on a dodgy one.

Only after you have bought the investment property should you structure the deal.
So I guess my point is that you must always do your due diligence on the property and only after you are convinced that it stacks up should you even consider how to structure ‘the deal’.

If you’re unsure of the difference between the deal and the property, then you need to speak to the team and, in particular, check out one of our 89 point due diligence checklists. Give us a call on +44 207 923 6100.

Live with passion,
Brett Alegre-Wood

About the Author

Brett has over 20 years experience in all facets of property, he owns various companies centred around property and is the driving force behind the education and training at Gladfish. His companies have sold over £850 million in UK and London property and he manages over 1200 properties through his estate agency chain. Today he shares his time between UK, Australia and Singapore. He is married to Arlene and together they have 4 kids.

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