Ajay Ahuja Blog on The Three Different Types of Buyers

There are 3 types of property buyers:

  1. The ill educated
  2. The educated
  3. The rich

Now I will define the difference between the three:

The ill educated – they have no knowledge that you can buy a property without a deposit.  They think 100% mortgages were a thing of the past and they also think they were the cause of the credit crunch. LOL

The educated – they think 100% mortgages and no money down property “purchases” were possible but are now ILLEGAL.  So if you visit certain forums (run by part time investors) or regional property meets (who introduce you to scamsters i.e. pay £20 on the door and pay £5,000 on exit!) who position themselves as experts just because they run online forums or networking events you will see they seem to say the same thing: No money down is dead.  They have no personal relationships with lenders or banks.  They think banks are faceless organisations.

Problem is these educated investors are like B or C grade students.  Yes they can talk a good talk but they are not really A grade students OTHERWISE they would be in the final category……

The Rich – the rich know that 100% financing will always be here.  It morphs in to many methods however it still remains that you can buy a property no money down.  I am completing on my own 210th property personally on the 21st of January.  I can show you the proof at my forthcoming seminar and introduce you personally to my lender who knows EXACTLY what is going on.  If they didn’t it would be fraud right?

Take the most basic of basic no money down financing where you borrow the deposit.  You borrow the 25% and the lender lends you the other 75% . There you go 100% financing. The lender is fully aware you have borrowed the deposit and happy to lend.  I have done it over a hundred times and NEVER had an issue with it.

Now take another basic example.  5% gifted deposit with a 95% residential mortgage.  Again 100% financing for residential purposes.

Take a slightly more tricky example which I use to buy my properties.  Get a property valued in excess of the purchase price, purchase the property for cash and then remortgage based on the valuation.  Completely 100% legal.  It is called same day bridge. I sometimes get cashback this way.

For those who sight the 6 month rule please make sure you are dealing with a lender with NO 6 MONTH RULE (if you want to know which lenders do not have a 6 month rule come to my seminar).  It’s easy when you apply logic to any situation however there are some property companies who want you to believe you cannot buy no money down.  Not sure what their motives are.

If you go to any of these forums or events ask them how many properties have THEY actually bought or how many do they own.

Are they active investors? Are they earning an income from their properties?  Do they have any concept of running a business with proper systems in place to run a portfolio or do they go round and collect the rent themselves?  Go and ask them.

So who do you want to take advice from:

The ill educated? Obviously not

The educated? Possibly, but with caution

The rich? Well why would you not…..?

Now am not saying to come and start doing business with me because I am “rich” however make sure if you are going to take wealth advice from someone make sure they have wealth in the first place and not someone who advises on wealth.  Know what I mean?

Want to know more? Read my advice books.