A Formulaic Approach: Borrow, Buy, Renovate, Sell/Rent, Refinance
When markets fall, many investors instinctively think: “Fantastic! Now I can buy even more properties at bigger discounts and grow my portfolio exponentially.” But what happens when the mechanics suddenly stop working?
What happens when banks stop lending, valuers steeply downgrade values, and sellers find themselves owing more to the bank than the property is now worth? Does “buying” really make sense, once stamp duty and deposits are included?
At that point, discounts alone are no longer the opportunity. If profit is based on price alone, then that strategy breaks! No property expert ever taught you how to profit on terms instead — and this is where the cracks in a strictly formulaic approach begin to show. What if you could genuinely structure a “WIN-WIN” deal instead of walking away?
When Reality Changes, Old Rules Stop Working
A rising “greed” economy is easy for everyone to ride. Investors invest, buyers buy, sellers sell — and banks lend openly. A falling “fear” economy, however, panics the market and can lead to a downward spiral that paralyses all participants. Can you keep a detached, level head in either cycle while others lose theirs all around you?
Traditional experts, unable to foresee the full scale of the unfolding landscape, continue to repeat familiar refrains — limited land supply, excess housing demand. Yet the reality tells a more complex story, reflected in the rapid rise of micro-housing developments in the UK. The masses tend to downplay what’s happening — until reality hits home.
Yet it is precisely times like these that motivated sellers become much more flexible on creative terms, so long as they can see a benefit to themselves too. This is how a property business can endure, while others crumble and dissolve.
Seeing Opportunities Through A Different Lens
In today’s economic climate, sellers are highly emotional, seeking solutions to personal and financial pressures. Will you really take joy in squeezing the financial lifeblood from them — or are you simply conforming to a system that trains you to act like everyone else? In fact, you could be the only one willing to challenge the idiom: “This is a WIN-WIN deal, Mr & Mrs Seller” — with the subconscious proviso, “only I win first.”
In past newsletters, I’ve given advanced warnings of what was coming economically, preparing you for the market we see today. Yet most people will continue doing what they’ve always done — until the warning signs hit them hard. Change for many comes only when it’s forced upon them. Can you act differently before it’s too late?
The world hasn’t changed — only how you see it. Most people keep walking around blind to the opportunities right in front of them, following the same worn paths, trapped by habit and convention. But those who choose to put on the glasses, to look again with fresh eyes, suddenly see possibilities others overlook. The deals, the terms, the creative solutions — they’ve always been there. The difference is who has the courage to see them. Will you be one of those who finally sees the world through a different lens?
