The Property Tycoons Newsletter
Showing you how to get started in the property business, how to find cheap bargain properties, how to fund
property deals 100% no money down, how to get mentoring from property experts and MUCH MORE!

 

Volume 1, Issue 8

 
Inside this issue:
 
Is Buy To Let On The
Brink Of Collapse?
1
 
My Recommended
Book Of The Month
1
 
Parmdeep’s Bargain
Property Marketing
Tip Of The Month
3
 
What’s Parmdeep Been
Up To This Month?
3
 
How To Find Bargain
Properties
5
 

Would you like to write
an article for this
newsletter?

5
 

Recommended
Resources

6
 

Do you have a property
to sell? Are you a property
finder looking for
investors?

6
 

ATTENTION Property
Investors – Here’s how
to Slash your mortgage
repayments & boost
your income for just 14
minutes of your time…

7
 

How to Slash Your
Property Taxes

8
 

How to take advantage
of superior growth opportunities
in Europe

9
 
Tycoons Team Member
Profiles
10
 
Member Of The Month
And Charity Donation
12

This Month 74,825 Property Investors Worldwide Are Reading
The Property Tycoons Newsletter!

 

Is Buy To Let On The Brink Of Collapse?

 

Yep you guessed it a newspaper headline for
you this month. The scaremongering continues which is good news for those of us who are serious about property investment.

The amateurs with more
money than sense get frightened away and you benefit from a softening in prices allowing you to stack up deals that may not have previously made sense.

It is difficult sometimes to
consider short term market
blips whilst keeping your long term goals in mind so I’d like you to read this article with one eye focused on today’s unique challenges and issues
and the other firmly focused on what you want your life to be like five years from today.

This is important because no matter what you do or what business you are in, there will always be things for you to worry about on a day to day basis. Very often these challenges distract us from our long term goals and if we focus on these challenges we will

quickly be led away from the things we most want in life and deeper into day to day problems.

Remember, property is a medium to long term investment. If you worry too much about today you’ll never get started…

If You Don’t Get Started You’ll Never Reap The Long Term Rewards!

It is rare that I meet someone in property who made all his or her money in a year or two yet I meet many people who purchased properties over several years allowing them to accumulate significant wealth over time. In the property business it really is the tortoise that beats the hare
every time.

As you know, the property market moves in cycles just like any other asset class be it shares, gold, antiques etc.

Property prices go up, they peak, they fall or stabilise, rents and affordability

 

catch up, they go up again and so on. This cycle has repeated itself for hundreds of years all
over the world so on that basis it is a safe bet to assume the cycle should continue to repeat itself in a similar form.

So that’s the first thing to bear in mind with all the short term uncertainty that is around at the moment.

Recently, I spotted Robert Kiyosaki (author of ‘Rich Dad Poor Dad’) on the Larry King Live show. When asked about the current state of the property market in the US he quickly replied with a smile “property is finally on sale – I’m very happy”.

And he’s dead right.

I believe the next three years will present many opportunities to snap up investment properties at fire sale prices. This is the BIG opportunity staring us all in the face in
2008.

Continued on page 2...

 

 
My Recommended Book Of The Month
 

Every month I send our Property Tycoons Community Gold,
Gold + and Gold VIP members my ‘book of the month’ as part of their membership of my Book Of The Month Club.

I also include my review of the book to help Gold members understand why they should read the book, the lessons to be learned and how best to use the book to help Gold members reach their goals.

A lot of newsletter readers

email or call me to ask me how they should go about writing a good leaflet or advertisement. We all define ‘good’ in different ways of course – to me it means I make back at least ten times the cost of the promotion. So from £1,000 invested in a leaflet campaign, you should expect to make a 10x return on investment or £10,000 in other words.

This is a very important skill for you to possess because a leaflet costs you the same whether it gets

you one deal or no deals.

An advertisement costs you the same whether it gets you one deal or twenty deals. A business card costs you the same whether it gets you five great new contacts or none.

The Difference Is In The
Arrangement Of The Ink
On Your Leaflet, Advertisement
Or Business Card!

Continued on page 3...

 

 
 
 
 
Page 2
The Property Tycoons Newsletter
 

Is Buy To Let On The Brink Of Collapse? (continued from page 1)

 

Those who create a plan, learn how to take advantage in this market and go out there and implement their plan properly may very well accumulate significant wealth in these times of uncertainty.

To understand how to create a good plan you need to understand what’s happening in the market right now…

The recent property boom has been primarily driven by easy money or more accurately easy access to borrowed money. This then caused the sub prime crisis which led to the credit crunch but I won’t go into that here as I covered that last month. For now let’s focus on what’s happening right now.

For various reasons, a lot of homeowners are now struggling to keep up with their mortgage repayments. Repossession
rates are therefore rising dramatically.

Your plan should include ways for you to find people who are struggling with their debt repayments and you should buy their properties below market value. In some cases you may even rent the property back to the previous owner. This allows the homeowner to stay put and possibly buy the property back from you when he is more financially stable and you get a ready made tenant who will generally take excellent care of your investment property.

In this way you get to buy properties below market value from distressed homeowners before they get repossessed. This is just one of the many important aspects of your plan.

Now let’s talk about other people’s plans.

In February I met with 70 landlords at my house for my monthly client get together. This is a wonderful opportunity for my clients to meet myself and my mastermind alliance. I also get to learn what challenges and opportunities other property entrepreneurs are facing in their businesses.

Not surprisingly, I learnt that the experienced investors are buying more properties not less now that we are in a period of uncertain growth. They are buying cheap, renting the property and holding tight for the long term. You should be looking to do the same thing in your area of interest.

This Strategy Doesn’t Apply To Just
The Cash Rich Among Us Either…

Some property entrepreneurs make the mistake of tackling this business completely on their own because they have the misguided belief that making money in business means doing everything yourself.

In building your property business the
first resource you will run out of is
money. Lots of other people out there
have lots of spare cash to invest in property. These are the types of people you need to team up with to build your property business so that lack of funds doesn’t become an issue.

So that’s another goal to add to your
plan – find and work with private investors who can lend you the deposits for property purchases when you run low on funds.

And here’s the major advantage of planning – the MORE you know what you want in property and how to get there the LESS time you will waste searching for ways to make money in property.

As a new property investor, I wasted
several months of my time searching for ways to make money in property. I found dozens of them. I then tried them all at once which made me no more valuable as an investor than when I started.

All I’d effectively done was make myself
mediocre at lots of things instead of becoming very good at a few critical things.

I Could Go On And On About The
Importance Of A Good Plan But I’m
Sure You Get The Idea By Now!

If you are stuck on your strategy or you
are not sure how best to formulate a plan don’t fret - I have lots of resources to help you. For example next month I will be launching a mentoring program for 100 newsletter readers.

This will involve me working very closely with 100 property entrepreneurs of all skills and experiences. My mastermind
team of mortgage brokers, solicitors,
property finders, negotiators and private investors will also be on hand to provide mentoring to the group.

Overall it will be an implementation
program to get you not just learning how to make money in property but actually have you implementing the strategies we teach to build yourself a lucrative income from the property business.

Your Skill Level Or Experience In
Property Is Not Important!

What I am looking for is commitment
and hunger. The hunger to become significantly wealthier and better off than
you are right now.

As part of the mentoring program I will
be offering lots of ethical bribes to
squeeze out the maximum performance
possible from you. The main inducement will be a grand prize of my convertible Mercedes SLK 350 (purchased new in 2006 for £38,000) to the mentoring program member who shows the greatest improvement – here’s a picture of this incredible sports car:

Second prize will be two weeks at my
www.motivational-retreat.com luxury
apartment in the South of Spain paid for
by me. Three scholarship places will also be offered to those who would benefit from a mentoring relationship but for whatever reason cannot afford it right now.

I’ve had lots of interest for the program
and as I mentioned before I’ll be launching next month. There will be an application process for anybody who wants to be mentored and I will let you know about that if you register your interest early.

To register your interest pop your details into www.property-coach.com. I will then send you further application information when I’m ready to launch.

Hopefully today’s article will spur you on
to greater success and riches in every
sense of the word.

Parmdeep Vadesha

 

 
 
 
 
 
Page 3
The Property Tycoons Newsletter
 

Parmdeep’s Bargain Property Marketing Tip Of The Month

 

Last month I did a lot of marketing related reading to catch up on what is essentially my job – to work on my business as much as possible not inside it. I then sat and worked out some important marketing ideas for my business. I have written down all the things to implement and in time I will get around to implementing most of the ideas.

My tip this month is simply this –
YCDBSOYA which stands for…

You Can’t Do Business Sitting On
Your Ass

Like me I’m sure you meet a lot of people who spend more time talking about doing something than actually doing something. World class businesspeople on the other hand rarely have time to sit and chat simply because they’re always so busy

making their next big venture happen.

And that’s how you need to be if you want to be really successful…

Here’s something for you to think about. Wherever you are in property right now, think about what it is that you really want from this business. It could be a portfolio of 100 properties. It could be £1m in the bank. It could be the time to spend more time with your family. It could be parachuting out of an aeroplane at 10,000 feet wearing nothing but a smile.

Now ask yourself this question: “if my life or the life of someone I deeply care about depended upon me achieving my goals in three years or less how would I go about achieving them?” Think about that for a little while. Imagine the situation.

Ok, I bet you would be doing things very
differently to the way you are doing them
right now. Is that correct? And you’d be
more focused. And you’d be a hell of a lot
more disciplined. And you wouldn’t waste any time… and so on…

Now do you see how achievable your goals are once you strip out all the time you are currently wasting on other things?

On a piece of paper write down a new
plan. Then write down dates for the
achievement of your goals. Next make a
list of the things you will do each day to
achieve your goals. Let me know how you get on via www.TheTycoonMethod.com. I
would love to hear how you got on.

 

 
My Recommended Book Of The Month (continued from page 1)
 

This essential money making skill is
called ‘copywriting’ so this month I’ll be sending my gold members an excellent copywriting book us property investors can use to make our businesses more efficient – “the ultimate sales letter” by Dan Kennedy. I’ve found this book invaluable in figuring out how to build my confidence in copywriting for motivated sellers of bargain properties.

As well as the book of the month,

Gold members also get an audio CD of me grilling the Property Tycoons community member of the month through the post each and every month.

The member of the month is picked by the other Tycoons community members
largely based on how helpful the member has been on our Property Tycoons Community forum
(www.TheTycoonMethod.com) - check out the back page of this newsletter to see who our members chose as our member of the month this month!

Gold members are also able to upload and download an unlimited number of documents, images, audio, video and software from the FREE Downloads section of the Property Tycoons forum.

To learn more about Gold membership
check out:

http://www.TheTycoonMethod.com then click register from the top left of the screen.

 

 
What’s Parmdeep been up to this month?
 

Once again I met with 70 landlords at my house this month for my monthly champagne reception meetings. These are fantastic opportunities for me to meet my best clients. I also get to learn what other property investors across the UK are doing to build their property businesses.

That was great fun and you can see the
pictures plus some audio clips from our speakers here at this link:

http://www.property-course.
com/DeepsPlace.htm
- register at
this site and I’ll make sure you hear
about the next meeting early on. We’re
going to be doing one a month so I’m sure we’ll get an opportunity to meet up soon.

As you can see we packed out the venue so we’ll be switching to a bigger venue from next month. We’ll also be coming down to London very soon.

Watch this space!

Last Month I Also Finally Completed
On My Dream Self Build Plot In The
Leicestershire Countryside!

I’ve been talking about this particular
plot in the last few newsletter issues so
you may have seen me mention it previously.

This will be a home for me and my family to live in. The plot is one of the best in Leicester with incredible views over rolling countryside. If you go to my website www.TheTycoonMethod.com and then click ‘blogs’ from the top of the screen you will be able to see many high quality colour pictures of the property.

Pretty much everything that could go
wrong or turn sour did so during our assembly of the site including a missing 0.5 acres in the title documents we were sent by the other side (talk about losing

the plot - sorry couldn't resist!)

We're aiming for an end value of at least £1.2m and up to £1.5m once we've finished the development. Size = 5,000 sq ft. Do I need a house that big? No but I do want to maximise the potential of the plot (1.55 acres) which means I need to build a big property.

The kind of people who pay those figures for properties in my area tend to be large families and sometimes even a couple of families will live in one house. Therefore lots of space and a minimum of 5 bedrooms is a must.

As you can see from the pictures there is a property already there which I did look at refurbishing. We figured a refurbishment would:

Continued on page 4...

 

 
 
 
 
 
Page 4
The Property Tycoons Newsletter
 

What’s Parmdeep been up to this month? (continued from page 3)

 
  • Cost nearly as much as a new build
  • Would involve me paying VAT (refurbs are not VAT exempt whereas self builds are zero rated)
  • Would not add a premium to the value like a new build
  • And we might find all sorts of problems like damp, rotted timbers and so on

You may remember I mentioned going with a packaged timber frame company to build out the property. I've decided against this route as I can get a lot more space for the same money if I handle more of the work myself. Package companies are great if all you want to do is effectively write out a cheque and have them do all the work. This works out to £150 per sq ft, so on a 5,000 sqft building so that's £750k just for the build.

Taking on an architect, a project manager and handling the trades that way can get it down to anywhere between £90 - £110 per sq ft which translates to about £250k less. That's quite a saving!

I'll keep adding more updates in this Tycoons newsletter and my blog to help any Property Tycoons Newsletter readers who want to develop luxury homes on premium plots learn how you can do the same thing for yourself.

I'll also post up many more pictures and videos over the next two years or so as we get the planning sorted out, choose builders, put the building together and so on. I'm really looking forward to sharing the experience
with you!

Here are a few pictures for you - if you want to see full size colour pictures please go to my website www.TheTycoonMethod.com
and click on blogs at the top:

Here’s the existing property. The plot is
very overgrown as you can see at the bottom left of the picture

Here’s a rear view of the property. A 2 storey red brick extension has been left unfinished. The whole house including the extension will be taken down so we can start fresh

One final thing. My mentoring program will be launching soon so I’ve been really busy

putting that together. As I mentioned in the first article I’ve had huge amounts of interest in the program and I’ll be launching the program next month.

If you are interested in participating please register on www.property-coach.com and I’ll make sure I update you as soon as I’m ready to launch.

Apart from those few events I also spoke to around a thousand property entrepreneurs at the Property Investor Show on the 7th, 8th and 9th of March. This is the largest and most popular property show in the UK. Twice a year I go there and speak to around 1,000 other property investors each time.
It’s great fun and I really enjoy meeting so many interesting people!

Here are some pics of me with some of our Property Tycoons Community members at the show (you can see the full colour versions on www.Tycoons-Newsletter.com ):)

This picture was taken after my initial talks on Friday – I spent a lot of time afterwards discussing the current state of the property market with these investors. I was especially interested to hear how investors had adapted their strategies to continue to profit in this climate.

Here I’m talking shop with attendees from my morning talk on Saturday
At every event I make a point to meet my
friend’s and clients before the show to catch up and hear more about their businesses.

At the London Property Investor Show we usually meet at this Noodle Bar just outside the entrance

Sharing a joke with some of our Property Tycoons Community members!

Here’s a couple of members of my team (my sister on the far left and Denise my PA 2nd from the right) hanging out with some of our Property Marketing Millionaire members

A few more Property Tycoons members – we all went for a cup of tea after this picture to continue our networking outside

Networking with a great bunch of property entrepreneurs once again – I covered the business of finding repossessed properties without talking to estate agents or visiting auctions in this particular speech

At the Noodle Bar again – this is the Sunday get together. I had a great time meeting so many of our Property Tycoons Newsletter readers over a cup of tea. If you use our www.Tycoons-Forum.com regularly you will notice a number of familiar faces from this
picture!

 

 
 
 
 
 
Page 5
The Property Tycoons Newsletter
 

How to find bargain properties — FREE training

 

Last year, for the benefit of my extensive network of thousands of
business contacts I set up a website called the Property Tycoons community. The website URL is www.TheTycoonMethod.com. The
website expanded at an exceptional rate from zero members at launch to over 1,000 subscribed members in just 12 months! The Property Tycoons forum is where over 1,000 property investors go to pass on and take property deals from each other, discuss property investment, help each other arrange networking meetings, chat live with each other on the Internet and MUCH more!

I thought it may be instructive for
me to go through some of the commonly overlooked features of the forum here for the benefit of newsletter readers.

A lot of our members do not know about the LIVE chat room feature
we have provided for our members to speak with each other in an online chat room environment at any time of the day or night. You can find this by clicking the “LIVE chat” link at the top right of the forum page. Log on between 8pm and 11pm to find members chatting about property investment.

Our deals and leads sections have

also proven to be exceptionally popular with members. This is where our members can pass on and take deals from each other. Go to www.TheTycoonMethod.com,
scroll down the page and look for
the sections titled “ready made
deals…” and “pass on and take
leads…”

For a bit of fun and relaxation, I
have also included a games section on the forum. Simply click the “arcade” link in the top right of the forum.

Choose the classic arcade game
you want to play and see if you
can beat our resident games
masters!

I have also put up several training
videos to teach Property Tycoons
Forum members how to find bargain properties. The aim of the
calls will be to teach Tycoons community members how to…

  • How to find bargain properties using other people’s time and resources…
  • How to set up your own
    bargain property finding
    website...
  • How to set up advertising
    campaigns on Google and
    Yahoo…
  • The software I use to spy
    on my competition and figure out their Google keywords…
  • Search engine optimization
    techniques…
  • How to pass on the deals
    and leads you do not want
    to pay for the ones you do — here’s how the professionals get their bargain property
    marketing paid for by
    other people!
  • And much, MUCH more!

To watch the training videos go to
www.TheTycoonMethod.com. Click
‘free downloads’ from the top left of
the screen then go to the “How to
find bargain properties - training
videos for Tycoons members” section. The videos are all in there –
simply click the blue links to open
the videos. They will take a few
minutes to load so please be patient.

The videos will even show you how
to generate leads for FREE – using
little known jealously guarded
secrets us ‘nerds’ keep to ourselves.
In the meantime email me your
burning questions about finding
bargain properties through
www.askparmdeep.com!

 

 

 

 
Would you like to write an article for this newsletter?
 

Do you have a property related issue you would like to discuss in this newsletter?

If any of the above statements apply to you, then I strongly recommend you consider our Gold VIP membership…

GOLD VIP members get a page to themselves each and every
month!

This is a great way to let the Vadesha Properties database of over 60,000 property investors know more about your product or service.

Your article will also reach over
4,000 of our investors by post—the majority of these investors have purchased products and services

from us over the last 3 years making
them great prospects for products
and services they can use to become even more successful in property in less time.

Email me to learn more about Gold
VIP membership—
deep@property-course.com

 

 

 
 
 
 
 
Page 6
The Property Tycoons Newsletter
 

Recommended Resources

 

In this section I will be highlighting
the latest and very best resources to
help you build a successful income generating property business. Some of the resources are best selling products we have developed to help our clients maximise their profits with minimal risk:

How To Get Started In The Property
Business…

  • Free Mini Course Reveals How
    to Find Bargain Properties ->
    www.TheTycoonMethod.com
  • Do You Make These 7 Fatal
    Mistakes When You Look For
    Bargain Properties To Renovate
    And Sell On For Fast Profits Of
    £50,000 Or More? ->
    www.property-renovation.com
  • They Laughed When I Wrote
    Down My Goals… But When I
    Started Making £2,578.39 Per
    Week... ->
    www.property-habits.com

How To Find Bargain Properties…

  • Free Mini Course Reveals How to Find Bargain Properties ->
    www.property-course.com

How To Raise 100% Finance And
Buy Properties No Money Down…

  • How To Buy Investment Properties No Money Down Using Other Peoples Money - A Proven Step By Step 100% Financing System Anybody Can Use To Rapidly Build An Income Generating Property Portfolio... ->
    www.property-deposits.com
  • 100% Finance Service For UK Investment Properties – Special Rates For Tycoons Newsletter Readers -> www.property-finance.com

Creative Property Investment
Strategies
(No Money Down, Tax
Avoidance, Buying Properties through a limited company, joint venture partnerships, options and lease options etc)…

  • How To Skilfully Use Little
    Known About Creative Property Investment Strategies To Dramatically Skyrocket Your Passive Income And Profits... ->
    www.property-legals.com

Do You Need Inspiring? Lacking
Motivation?

  • Accelerate Your Income, Personal Growth And Well Being In Truly Inspiring Surroundings -
    My Ultimate Motivational And Goal Setting Retreat Can Be Yours From Just £60 Per Day ->
    www.motivational-retreat.com

Back Issues Of This Newsletter…

Virtually all of our products come with full money back guarantees giving you the opportunity to try any of our products (at our risk)). If for whatever reason the product does not match your expectations you may request a full and immediate refund.

 

 

Do you have a property to sell? Are you a property finder looking for investors?

 

This is a very important skill for you to possess because a leaflet costs you the same whether it gets you one deal or no deals. An advertisement costs you the same whether it gets you one deal or twenty deals. A business card costs you the same whether it gets you five great new contacts or none.

The Difference Is In The Arrangement Of The Ink On Your Leaflet, Advertisement Or Business Card!

This essential money making skill is called ‘copywriting’ so this month I’ll be sending my gold members an excellent copywriting book us property investors can use to make our businesses more

efficient –“the ultimate sales letter” by Dan Kennedy. I’ve found this book invaluable in figuring out how to build my confidence in copywriting for motivated sellers of bargain properties.

As well as the book of the month, Gold members also get an audio CD of me grilling the Property Tycoons community member of the month through the post each and every month.

The member of the month is picked by the other Tycoons community members largely based on how helpful the member has been on our Property Tycoons

Community forum (www.Tycoons-
Newsletter.com
) - check out the back page of this newsletter to see who our members chose as our member of the month this month!

Gold members are also able to upload and download an unlimited number of documents, images, audio, video and software from the FREE Downloads section of the Property Tycoons forum.

To learn more about Gold membership
check out: http://www.Tycoons-
Newsletter.com
then click register
from the top left of the screen.

 

 
 
 
 
 
Page 7
The Property Tycoons Newsletter
 

ATTENTION Property Investors – Here’s how to Slash your mortgage
repayments & boost your income for just 14 minutes of your time…

 

Property investors often say to me “Deep, how can I make my existing property portfolio more profitable?”

It’s a tricky one and there is no ‘one size fits all’ answer. Let’s look at a few options:

  1. Increase your rents – a good strategy but not always possible especially when the market is very competitive (in fact you may have to lower your rents in some cases to get your properties rented quickly)
  2. Try to find new more profitable uses for your property – a classic example would be taking a large 6 bedroom detached house and turning it into 3 self contained flats. This strategy can only be applied in certain situations
    of course.
  3. Assuming the property is financed with a loan an investor could renegotiate financing terms or refinance with a different mortgage lender. There are some great rates out there at the moment so this is a viable
    option that I will focus on in this article.

Let’s look at an example of how a property investor might go about making her property portfolio much more profitable by taking the refinance route…

She is paying £600 per month a mortgage interest on a property which earns her £800 per month in rent. That’s £200 per month (gross) that she gets to keep each month. She has an average level of equity in the property.

If she could refinance the debt and reduce her mortgage interest payment from £600 to £500 per month then let’s look at the figures now.

Her gross profit each month has leapt from £200 to £300 – that’s an increase of 50%. Keeping everything else equal, let’s assume she has 20 of these properties. That would mean her gross income shooting up from £4,000 per month to £6,000 per month!

That’s a £2,000 increase in her monthly income for nothing more than speaking to an honest independent mortgage broker and filling out some forms. Let’s look at another example. A property investor owns £1m of property with loans of £500,000 secured against the portfolio.

The total rental income is £80,000 per year. Mortgage interest payments are £35,000 per year.

By simply refinancing the £1m property portfolio up to 80% of current market value he ends up with £300,000 in cash (£800,000 - £500,000) that he can use to purchase more properties. His interest payments rise to £56,000 which are covered by the £80,000 in rental income coming in.

Overly simplistic examples perhaps but I’m sure you get the idea.

This approach doesn’t just work for BTL investors either. It can be applied to whole raft of property investments including renovation projects, redevelopments, land acquisitions, conversions, buy to sell properties, commercial property investments and even second home investments.

Get A Trained Professional To Help
You

Hitting the web and choosing a mortgage product from one of the many of lenders out there can be headache. For a start you will not be able to access many of the ‘special’ products that lenders reserve for brokers. Why? Because they have buying power that you as an individual will not benefit from.

You will also waste valuable time chasing people you do not have much influence with. For example, I’ve just raised £980k from Lloyds TSB for a development project I’m working on. My broker called the
bank every other day to answer their
questions and chase the application. Then more questions and more chasing followed by bankers taking holidays followed by a few more questions and so on…

After all that you’d expect them to have an offer for me within a few weeks wouldn’t you? The mortgage offer took the bank THREE MONTHS to get out to me! And in that time my mortgage broker had invested many hours either on the phone, sorting out forms himself or discussing things with me.

He is not paid a penny unless the mortgage goes through so why would I want to waste my time chasing everything when he can do it all for me?

What Should You Watch Out For?

Be VERY wary of mortgage products with the very lowest rates. Some deals appear very attractive until you read the fine print where you will not only find hefty arrangement fees (sometimes added to the loan but repayable by you eventually remember) you may also be forced to pay substantial redemption penalties if you repay the loan early. This is fine if you want to be tied in for a while but make sure you are aware of the flexibility you have given up.

An independent properly qualified mortgage broker can you lead to the best deal.

How Do I Find A Good Mortgage Broker?

We have several quality mortgage brokers on our Tycoons forum website or if you prefer you can drop me a line via broker@property-finance.com or call our office on 0121 702 1414 and I’ll give you the number for the team of mortgage brokers who handle all my business.

They will call you back and talk you
through the hottest deals on the market. More importantly they will take all the hassle and trouble out of finding the best buy to let mortgage product for you.

Getting The Very Best Deal

It’s important that you secure the very best terms on offer. My team will show you how to structure your application in order to do this. They will search the market for the most appropriate deals that will allow you to reduce your monthly repayments and/or raise extra cash you can use to buy more properties or do whatever else you want to do with it.

They can help fund HMO properties
(licensed or unlicensed), ex council properties, commercial properties, flats above shops, studio flats, bedsits and part commercial part residential properties. Tenant types include students, DSS, companies, housing associations and councils.

No matter where you are in the property business – established or just starting out drop them a line and see what your options are. Drop me a line via broker@property-finance.com or call our office on 0121 702 1414 and I’ll give you the number for the team of mortgage brokers who handle all my business.

 

 
 
 
 
 
Page 8
The Property Tycoons Newsletter
 

How to Slash Your Property Taxes

 

Remember, one of the easiest ways to
make money in property is to pay less (or totally avoid) property taxes!

My good friend Amer Siddiq, founder of
Property Tax Portal (http://www.property-
system.com/TaxTips.htm
)
has agreed to share some tax saving tips and strategies with you every month…

How to Pay off Your Residential
Mortgage and Claim Interest Relief -
by Arthur Weller and Amer Siddiq

Now, doesn’t that sound like a great idea – getting tax relief on the mortgage interest that you pay on your main residence?

Well, you will be pleased to hear that it is possible by following a simple (and relatively unknown) tax relief and some creative financial planning.

The Basics

As most property investors are aware, it
is not possible to claim interest relief on your main residence . This is because your main residence does not form part of the property business. Therefore, because no rental income is received from your main residence
(exception being the rent-a-room-relief),
you cannot claim interest relief against
your income.

However, you will also be aware that you can claim interest relief on properties that form part of your property business i.e. your buy-to-let portfolio. In such instances you can offset your mortgage interest on your let properties against any rental income received.

Introducing BIM45700

BIM 45700 was first introduced by us
back in October 2004. In an article, we
identified how this little known strategy
gave landlords the opportunity to release equity from their investment properties and offset the interest regardless of what the equity release was used for.

The only restriction is that the equity
release cannot be greater than the market value of the property when it is
brought into the letting business. If the
property had been originally bought for
letting, this amount would be the purchase cost of the property.

So How Do We Get Tax Relief on Our Main Residence?

Well there are two ways to achieve this:

Remortgaging existing buy-to-let
property/portfolio

Those of you who have or are growing a buy-to-let portfolio are likely to have equity in the property. The example below shows how/when this equity can be released to give you a tax benefit.

Example
John buys a property for £200,000. He provides a £40,000 deposit and borrows £160,000. 5 years later the property has increased to £250,000. This means that he has £90,000 equity in the property. He decides to remortgage the property to
a value of £200,000 thus releasing £40,000 of equity from the property. He uses the £40,000 equity release to reduce the mortgage on his main residence by £40,000 and still claims interest relief on this equity release.

Now you will be asking how is this possible?

Well, don’t forget the property was
bought into the lettings business when it was purchased for £200,000. The additional amount of equity released has not taken the borrowing over £200,000, so the entire interest amount charged can still be offset against the rental income.

So, if say, for example he is paying £200 a month interest on the £40,000 then he will be able to now offset this interest against his rental income.

Result:

  • Reduced debt on the main residence
  • Borrowing moved to buy-to let property upon which interest relief can be claimed against the rental income

Now, this is just an example of a single property. Imagine if you have 2, 3, 4 properties or more and have the ability to withdraw equity as in the example
shown above?

By using this same strategy on a number of properties, you could shift the entire debt from your main residence on to your buy-to-let property portfolio and claim interest relief on the entire amount!

Moving Equity from Previous Residence

Another useful tax trick is to remortgage a previous main residence.

Again this strategy is best illustrated by an example.

Example
Lisa and John buy a property for
£100,000 (£20,000 deposit and £80,000 mortgage). They live in the property for five years and then decide to buy another property. Instead of selling their existing residence they decide to get onto the buy-to- let ladder and let the property out.

The cost of the new property is £200,000, and at the time of letting, their previous residence is worth £150,000.

They increase their debt on the previous residence from £80,000 to £150,000 i.e. they release £70,000 of equity. They then use this equity release to reduce their mortgage on their main residence by £70,000.

Once again, because the additional
amount of equity released has not taken the borrowing over £150,000 (the price when it was brought into the lettings business), the entire interest amount charged can still be offset against the rental income. If the interest charged on this amount was £250 per month then this is a significant saving every month.

Once again, with this little trick we have:

  • Reduced debt on the main residence
  • Moved borrowing to buy-to let property upon which interest relief can be claimed against the rental income

Conclusion

As you can see, sometimes with a little
bit of creativity you can bring significant
tax savings! It is possible to get even
more creative with this tax break but
we’ll leave these strategies for another
time.

To get 7 Free Tax Saving Strategies that are Guaranteed to Slash Your Property Taxes visit
http://www.property-
system.com/TaxTips.htm
.

 

 
 
 
 
 
Page 9
The Property Tycoons Newsletter
 

How to take advantage of superior growth opportunities in Europe
by Alan Forsyth

 

Three countries and cities I am very keen on are Lodz in Poland, Brno in Czech Republic, and Tirana in Albania - all major cities that we feel are in a great position for capital growth.

Let's go through a brief summary on each of these.

Lodz

In the last 10 years Lodz has experienced massive growth from foreign direct investment along with multinational corporations relocating their workforce to Lodz. The world’s largest Gillette factory has recently been built in Lodz which required £89 million of investment and now employ approximately 690 people. Furthermore the computer giant
Dell has spent £200 million on a
manufacturing plant in Lodz which is now up and running. A city rich in culture Lodz is thought of the film capital of central Europe
. Often dubbed ‘Holly-lodz’ the city is thought of the cradle of east European cinema.

Lodz has five universities which include schools of medicine, engineering and the only classical art academy in Poland.

Aside from its cultural heritage many analysts believe Lodz’s property prices are fundamentally undervalued. Lodz is only 60 miles south west of Warsaw but the prices per square is over 50%
lower.

There are other key indicators set t
increase prices in Lodz. There are 3 motorways that are being built to connect Lodz and Warsaw they are on track for completion in 2012 in time for the European cup. There is also a major railway link being built through the centre of Lodz which will allow locals to commute to Warsaw in under 1 hour! Finally Warsaw’s second airport is being built in between Lodz and Warsaw which will cause more businesses to relocated to Lodz.

We have secured a small selection of 1 and 2 bedroom apartments in the heart of the city-centre of Lodz. We have secured the units at the best possible price and have negotiated for the apartments to be finished to an excellent standard by the developer. We have an excellent management and legal team lined up and have secured 90% LTV mortgages from a local bank.

Apartment prices are from £50,000 - so deposits are from just £5000!

Our previous Poland deal's have
all gone very well - with over 150
reservations last year!

Tirana

Tirana is the capital and largest city of the Republic of Albania.

It has a population of around 600,000.

Tirana is Albania's major industrial
centre. It has experienced rapid growth and established many new industries since the 1920s. The principal industries include agricultural products and machinery, textiles, pharmaceuticals, and metal products.

Since 2003, up to six private universities have opened in Tirana and have attracted thousands of students. There is also a University of New York Tirana which is an American-accredited university with hundreds of students offering American style education and
American diplomas in different areas of studies in cooperation with the State University of New York.

With direct flights from the UK, the
mortgage market opening up and a
safe legal system, Albania is destined to be an excellent location to target in 2008!

However the biggest reason to invest here?

Simply how great value the property is! Prices in a capital city for around 550 Euros/m2 - or from £15,000!! This is incredible value - and with rental yields of 6-8% and a strong rental demand, this is a fantastic opportunity! With hundreds of millions of euros being invested in the country by the EU in preparation for EU entry in 2014 and NATO entry in 2008, investment into the capital city is a fantastic opportunity! BA, BMI, Lufthansa and Alitalia all offer regular services to and from the U.K.

Around the historic city of Tirana,
there is a wealth of high quality restaurants and 4-5 star hotels all offering an atmosphere of well-deserved grandeur and quality.

Brno

Our developments in Brno have all
sold out very quickly – and we have
been trying to find another deal that
ticks all the boxes.

We are looking for excellent prices per m2, and low deposits.

We have managed to negotiate a
deal on this one – with just 7% deposits required, and nothing more to be paid until completion – and we expect mortgages to cover this remaining amount - so again you can buy into this development for around £5000!

Already from two viewing trips,
we have taken several reservations on this one!

Why Brno?

Brno is the second largest city in the Czech Republic and it is strategically located in the middle of three regional capitals - Prague, Bratislava and Vienna and therefore experiences a large amount of passing trade from the other countries. It has a population of around 360,000 people.

The city has recently won an award as
Eastern Europe’s (Visegrad) “European
Cities & Regions of the Future 2006/07”
and has seen sustained economic growth.

The city Brno is known particularly for a
high number of the universities including the technical university (VUT), which is only 10 minutes walk from the development.

Being the business capital of Moravia it
boasts some big name companies such as IBM, Siemens, Minolta CR, Honeywell Controls and FEI.

The economy has grown steadily since the 1980’s however asset prices are still low compared to the UK and demand for property is at a premium.

The city of Brno is full of breath-taking
architecture with a variety of lovingly restored building prior to WWI. The city is also extremely cosmopolitan with all the well known high street brands.

In the last 10 years Brno has experienced a large increase in commercial activity due to the relocation of a number of multinational
companies.

RyanAir has been flying directly from London to Brno on a daily basis since the end of 2005, and from Dublin since the start of 2006.

Three very strong cities that I would
recommend looking at for strong returns on investment!

Alan Forsyth runs two successful
property investment websites. He also sends out weekly newsletters to over 8000 subscribers – sign up for free at
www.property-system.com/7- partcourse.html. He also writes for several property magazines and gives free consultations to investors.

 

 
 
 
 
 
Page 10
The Property Tycoons Newsletter
 

Tycoons Team Member Profiles

 

If you have any queries whatsoever about the Tycoons community you can contact our support department for help. Our "Tycoons Team" are responsible for this role. You can find them by going to www.TheTycoonMethod.com. Scroll down the page until you see the "Forum Feedback And Queries" section. Feel free to post any query or feedback for us in there. To help you find our Tycoons Team I have listed their profiles for you below.

Please feel free to contact them anytime for any help you may need, to make new contacts or if you see any opportunities to work together.

--------------

Profile: Bhupinder Sohanpal
I am a young, enthusiastic lawyer who has worked for one of London's top five law firms.  I am currently on sabbatical to do a postgraduate course (PhD) and learn the art of property of entrepreneurship.

Through my study and application of the law I have acquired the ability to be discerning, clear thinking, logical and of common sensical mind.  These are qualities which are transferable in any business venture. 

I have excellent research skills together with sound commercial nous and a strong sense of integrity.

As well as adopting the role of Member Satisfaction Manager, and as a newcomer myself to property, I am happy to be a mutual point of contact for all those new comers for whom things may seem a little daunting.  Together we can share the experience of realizing our aspirations.

Due to my insatiable appetite to learn and implement I am  also willing to help an experienced investor and or developer with any suitable tasks. 

Further, I am keen to help look for properties on behalf of investors in West/SW London.

Passions that stir my heart are mountaineering,

the great outdoors, poetry and literature, environment and service to make this planet a better place.

I feel privileged to have this opportunity to learn, work and help on the Tycoons Forum.

--------------

Profile: Leslie Parr

Hi my name is Leslie Parr. We have three grown-up children two lads & a girl and two beautiful grandchildren. We have recently celebrated our 25th Wedding anniversary. We went to Deep’s Spanish retreat for the celebrations.

I worked in the Chemical industry on 12 hour shifts for 24 years. When I was made redundant at Christmas 2006, I joined Deep’s forum after searching for information about buying investment property. I had never heard of BMVs before I sat reading the forum for about 4 weeks before I posted.

I wanted to know as much as I could so I would not make a fool of myself when posting questions. I have met Deep twice (very down to earth guy). I received a call from a forum member who asked if I could view a property for them in my area we had a good chat. Since then we have done a few JVs we are waiting to complete on two properties in Wales. We are in the process of setting up a meeting with a landlord who is selling a property portfolio of 35 houses. If we succeed with the negotiations we will have purchased around 40 Properties in the span of twelve months. This is a whole new world for me and I learn something new every day. This is the best property forum that I have been a member of and 99% of the members will help you move forward to achieve your dreams and goals. The amount of information and help you receive far outweighs any membership fee. If any tycoon team Member can be of any help to any new members please

just ask. Don't sit there like I did for a month. Read as much as you can on the forum as 90% of your questions have already been asked, just search for the answers. They are there.

--------------

Profile: Tee Bodani

Like many of you, I have Deep to thank for opening my eyes to the world of BMV property some time ago and it's great to be part of this community of like-minded investors!  I have a Finance/Marketing background, I have developed a special interest in Creative Finance/Legal methods to purchase property and I'm actively using these strategies to build my portfolio.

You'll also find me working behind the scenes helping Deep put together the Tycoon's Community Newsletter every month so if any of you have a product/service that you feel the Tycoon's Community could benefit from then please do feel free to get in touch with me.  The property business rewards those who take action so just get out there and do it!  I look forward to hearing from other forum members with similar interests with a view to combining forces to create wealth.

--------------

Profile: Juswant & Sylvia Rai

Hi everyone, we are Juswant and Sylvia Rai aka Mr. and Mrs. Rai. We'll keep it short, but once Sylvia gets going...! Our background is 20 years working in IT (Juswant) and 15 years in Finance (Sylvia). When we met three years ago we realized very quickly that we had a common interest - Property!

Continued on next page…

 

 
 
 
 
 
Page 11
The Property Tycoons Newsletter
 

Tycoons Team Member Profiles (continued from previous page...)

 

After years of watching other people get wealthy from investing in property, we decided we wanted a piece of the action, too! During our research on the Internet for better ways of buying property, Deep and his No Money Down methods jumped out at us.

We dived in head first, started attending Property Networking events and joined Deep on his forum - and what a goldmine of information! We were warmly welcomed by all and information was freely available for anyone that asked. This forum has grown and evolved into a much bigger place but the spirit has remained. We have made many great 'virtual' friends that have translated into 'real-world' friends, colleagues and contacts. At the last Property Investors show, we helped a good friend of ours on his stand for 3 days and with our real names and pictures on the forum, many people recognized us and stopped to chat.

Going from a J.O.B to Property Investor has been an interesting & challenging journey for us. We have had help from many people often with no expectation of anything in return. It was in this spirit that we launched our own meeting in Berkshire to enable many liked minded people to meet, connect, learn and prosper. From there we personally know of a few JVs that have come together, including 2 of ours and our own property investing business took an unexpected turn and has proved very lucrative for us.

If any member of the tycoon team needs help please do ask. One thing we have learned is that without the selfless help of the many others via the forum and the many networking events we have attended, we would not have achieved everything that we have so quickly. Mix and converse with like minded people, they will raise your game and hold you to a higher standard that you thought yourself possible. We wish you all the best in your endeavors. We are here to help so please do ask and stay in touch.

--------------

Profile:  Chris Bannocks

In A nutshell:
Chris spends his days running a business for Reuters in Canary Wharf and is building his property portfolio with his partner Adria. She has recently left her job as an Estate agent and they are setting up a sales, lettings and property management firm and growing their portfolio from the 5 UK properties and 2 overseas properties they currently have to 10 properties overall by the end of this year and 22 properties by the end of 2008.  Chris is interested in hearing from people who need low cost property management and wish to JV or pass on leads in Nottingham, Derby, Essex or East London.  He is also looking for investors interested in working with him and Adria whilst they build their portfolio and property developers interested in Agents to sell their properties in the UK and abroad.  Chris is about to embark on an MBA at Cranfield so is a very busy man and helps out on the forum conducting member of the month interviews and is currently working on the Vadesha properties podcast, coming to you soon!

Chris can be contacted at chris@fastproperty.net and Adria can be contacted at Adria@fastproperty.net
or direct on  08000 789391 or 08000 789381

--------------

Profile: Pankaj Shukla

Pankaj passionately believes that property is one of the few investment vehicles that make people genuinely rich over time. Since BMV route allows the transfer of real Wealth in the direction of an investor,  Pankaj decided to put his consulting career on hold to build his property portfolio. He is excited to be working with so many multi-talented individuals on this forum, as well as with Paramdeep and the rest of his Tycoon team behind the scenes.

Pankaj has worked as a consultant for large organizations, and in various industries including media, online marketing and IT, among others. But he remains an entrepreneur at heart, and ever willing to help others with his experience and contacts.

He may even help you develop a business idea, if you have one, especially if it involves marketing to online audiences.

--------------

Profile: Parmdeep Vadesha

Parmdeep has been described by some as the UK’s ‘bargain property wizard’ after having introduced over 60,000 UK property investors to proven techniques they can use to find distressed sellers of cheap properties and how to buy these below market value bargain properties using little or none of their own money.

Parmdeep owns and manages his own property portfolio across the Midlands including a block of twenty four apartments that he built from scratch.

He runs several other successful property businesses one of which finds distressed sellers of bargain properties for his newsletter subscribers, negotiates below market value prices and passes these ‘ready made’ deals on to his newsletter subscribers.

Parmdeep also runs a financing business that helps his Property Tycoons newsletter subscribers purchase properties no money down using 100% bank financing. He helps around four newsletter subscribers every week to purchase bargain properties using 100% financing to make his subscribers over £60,000 per week in profits.

This continual sharing of the latest techniques has helped transform many of Parmdeep’s newsletter readers into financially free property millionaires.

 

 
 
 
 
 
Vadesha Properties Ltd.
314 Uppingham Road,
Leicester
England
LE5 2BE
Phone: 0116 2460205
Fax: 0116 2764 569
E-mail: deep@property-course.com
"Helping You Find And Buy Masses Of Bargain Properties Using Little Or None Of Your Own Money"
 
Get your question answered
by property experts:
www.TheTycoonMethod.com
 

 

Our January 2008 Member Of The Month And Charity Donation

 

This month our Property Tycoons
Community member of the month is
John Cummings (AKA Sofie on our
www.TheTycoonMethod.com website) from York!

John is one of the most active
members of our
www.TheTycoonMethod.com
website. I see him posting guidance
and advice on a daily basis for the
benefit of our Property Tycoons community members. He does this without expectation of reward or recognition which is why our members voted him the member of the month.

His property investment strategy
involves the use of classified advertisements in the local newspaper to find people who may be distressed to sell their property at around 20% below its true market value. Often these are people facing financial problems. He then does his research, offers a reasonable price and buys the property. This has allowed John to purchase around 50 properties in

two years. In this months audio recording you will learn:

- How to avoid the common mistakes made by beginners in the property business...

- How to build the level of knowledge possessed by many investors with 10+ years of experience in the property
business in under one year...

- How to buy below market value
properties – proven step by step system revealed…

To listen to me grill John Cummings for an hour about how he became so successful in property then visit the FREE downloads section of the Tycoons
forum: http://shmyl.com/wseoson

Click the ‘”member of the month
audios and resources” section to listen to the online version.
If you want me to send you the audio CD and transcripts of the member

of the month interview each and every month then consider becoming a Gold member of our Property Tycoons forum. Gold members also get my recommended book of the month
through the post each month.

Oh I nearly forgot to mention, I donate £1,250 each month to the charity nominated by our member of the month..

As the community grows, I will continue to donate £1,250 each month to the charity nominated by our member of the month. I hope this encourages you to think about ways in which you can help other people who may not enjoy the same benefits and advantages as you do.

To nominate our next member of the
month go to our www.TheTycoonMethod.com and
look for the ‘member of the month’
section midway down the main
homepage:)