1.

Find people who are motivated to sell their property, who are wiling to be flexible with their asking price and who are prepared to sell the property below market value.
i.e. At a value lower than the open market value.

These people are not that difficult to find if you know where to look and understand how to structure a deal in order to help them whilst making a healthy profit for your efforts.

There are many reasons why people are motivated / desperate / need to sell property.
They may:

Need to raise finance quickly to fund other purchases.

Have accumulated a lot of debt and are unable to meet their obligations and so face repossession

Have inherited a property and have no idea what to do with it

Costly refurbishment or no intention of improving the condition of it so would prefer to just sell it off

Be going through divorce and need to split up the property ownership.

Be emigrating abroad or moving up the property chain and the only thing stopping them is their current property taking too long to sell.

Have bought property as an investment but are facing a negative cashflow situation due to void periods or interest rate increases.

2.

Purchase the investment property to help solve the property owner's problem for an agreed price that is below market value, say at a 15-30+% discount, using any or a combination of the following financing techniques:

• cash in the bank or from Private Investors and Joint Venture Partners
• buy to let mortgages
• 0% credit cards
• Secured or unsecured loans
• equity in an existing property
• investment
• bridging finance
• vendor finance
• builders’ discounts etc
• property options

3.

(Wait &) Refinance the property at its actual open market value.
This was a very viable and profitable way of doing business when same day purchase and re-mortgage was available. Many lenders now insist that property is owned for at least 6 months before they allow any approach for remortgage.

When purchasing any property with a view to raising capital by refinancing at a later stage make sure that the property will generate a positive cashflow from rental yield and it will be self sustaining throughout the time you own the property.

Using this method will repay the original lender and extract the initial monies paid. If done correctly, and depending on the financial economy, it is possible to walk away with tax-free cash lump sum and a cashflow positive passive income via rent received.

All from SOMEONE ELSES MONEY!