How To Get The Best Rental Accommodation In The Area By Using "Your Capital"

My report is for you to use your power to negotiate, not only a reduced weekly cost of accommodation, but also to get the best accommodation available in the area in which you wish to live.

Hello Colm Dillon here ...

Market conditions will effect the final outcome.

Irrespective, a good negotiation, following these guidelines, will save you money. Get to know the state of the market before you commence.

Determine how much you can afford to pay and then go higher. For example if you can afford $200 per week, start looking at a figure of say $250 - $260 per week. If you fall into a higher bracket; say $400 per week, start looking at $500.

Go to several real estate agencies and ask them what they have on their books at the amount you nominate. Also tell them your preferred areas.

Go through the normal selection process and pick the best place in which you would be happy living.

Confirm the weekly/monthly rental with the agent and the length of the lease term i.e. 6 months etc

Confirm with the agent that you really like the place, although there are a few others you like as well. Don't say which ones, just give the impression that their agency is not the only 'cab on the rank.'

Note: Final selection by you will be made on the basis of the landlord attitude, as you intend living in the property for a 'while.'

Start The Negotiation. Ask the agent to find out how much the landlord would accept for a 12 month lease. He will probably reply by stating the same amount back to you as you would pay for a six month term.

Start ramping up your approach by enquiring about a 2 year term. At this stage you should be getting the agent to phone the owner and coming back to you with a discount.

You could leave the agency for a hour or so ... allows time for the agent to see that you are giving serious consideration to the other properties, as well as theirs.

Don't be to automatic in your process. "Time" is a wonderful tool in negotiation.

Generally talk a bit more to the agent and raise the question of what discount the owner would accept for a 3 year lease term.

Again a phone call to the owner should take place. If the agent is making all the decisions without calling the owner, you should insist, as h/er does not have a big latitude in rental decision making. The owner is the agent's 'boss.'

You should expect a further discount from this latest approach.

The agent may start to feel as though the negotiating should be coming to an end. Don't worry, you are about to bring out the 'Big Guns.'

Confirm again that you are warming more and more to the property, but there are a few other things you want to raise.

Tell the Agent that you would consider pre-paying 12 month rent in advance, if the owner would come to the party on the rent. Emphasize, the lack of risk to the owner; a large one off payment in his hand now that could be used to buy more property, etc etc.

Expect a reduction and Get It.

Depending on how your are going in the reduced rental stakes, in approaching your target base rent price, you may have one further go and offer 18 months or two years rent payment in advance.

You may hold off with this final offer by leaving the office after the last response.

The agent and owner have given ground on the rent so they may be feeling a bit tender. Let them 'marinate' for a few hours; maybe even over night, then put the last proposal of the 18 to 24 month prepayment of rent.

Once again, only you can judge how the negotiations are going. Most people want to 'do a deal' quickly and do not have the patience for a long term, several hours, negotiation.

By adding a more and more enticing offer you are making yourself more desirable as a tenant ... you will start to surround yourself with a "Golden Glow" of desirability.

When the final deal is done on rent and before you sign any Lease, you can now raise any property questions you have; i.e. carpet shampoo, condition, painting, plumbing, door locks, blinds etc etc.

Take photographs on a dated film of every aspect of the property (2 copies) one for the agent, one for you. You sign the back of the photos you give the agent and they sign the back of the copies you keep and it is noted in the lease.

When all these actions are taken, you will have accommodation, that you want, that is better than the original $xxx per week would get and you are secured for 3 years.

Finally, from these negotiation processes, both the owner and the agent will hold you in high regard, because most people admire a good negotiator.

Happy renting

Note: There is a financial mathematical formula called Discounted Cash Flow (DCF) which can be described as a means of calculating the 'Present Day Value' of 'Future Cash Flows.'

So what does that mean?

Let's say that you have got the $250 per week rent down to $230.00 before you start offering to pay rent in advance.OK?

In making the decision to pay in advance, you are giving the owner an amount of cash that they can use to make other buying investment decisions.

What this means is that the money you give them can earn them an amount of money, and we'll call that 'interest' - just like the bank. This is just one concept I want you to lock away.

That concept has been given to you so that you can see, or understand, my next concept of DCF.

Imagine writing across a page a whole string of $230, $230, $230 etc for every week you would normally have to pay that rent; 52 times or 104 times.

Now imagine discounting the 52nd $230 by an interest rate of whatever; say 5% for 52 weeks. Then the next $230 is discounted by 5% for 51 weeks and so on until you get back to zero weeks. Having done all these calculations and then add them up you arrive at a $value of all those Cash Flowed $230's for 52 weeks or for any other period.

I have not done the calculation for you because individual circumstances vary so much. However it is this discounted amount of money that you offer to the property owner.

Now going back to my first concept, you can see how the owner can invest the money. If they were to earn say 5% they would almost get back to the figure we started with i.e. 52 x $230.00 except of course the investment would also have gained in capital value.

I hope this brief explanation helps you understand why you should expect a discount for the Pre-Payment of rent or any other purchase you make where payment over time is the deal.

Last Point: If you were to leave your pre-paid rent in your bank account you would pay Tax on the interest you earned.

The Discount you get off your rent is Not Taxed and so is much more valuable to you and in effect you are getting a better return on your money invested in RENT.

This Article Shows You How To "SAVE MONEY & GET WEALTHY" by Renting & Using You CAPITAL.

Colm Dillon's eBook, "Residential Development Made Easy" is a best seller in 38 Countries World Wide, through his web site: http://realestatedevelopmentcoach.com/realestatedevelopment.html having developed $1.2 Billion worth of projects himself.

The 21st Century Way To Build Equity

Here to stay and firmly established in the U.S. mortgage market, biweekly mortgage payments are gaining momentum. First introduced into the U.S. in the early 1980's by several small Northeastern Banks, the idea of biweekly mortgages has its origins in Canada.

This concept soon became the popular choice nationally within less than a decade after it's arrival placing the biweekly payment plan in the forefront of Canada's mortgage industry around 1972 for several good reasons. Consider the following:

1. Most people are paid weekly or biweekly, therefore, it is reasonable to have as an option "biweekly mortgage payments".

2. On a biweekly mortgage payment schedule, one half of a loan's monthly payment is made and credited to the account holder every two weeks. This is equivalent to making 13 monthly payments instead of the usual 12 monthly payments reducing the loan's payoff time.

3. Faster accumulation of equity build up of up to 300%, plus a reduction in interest owed on the loan due to your prepayment is the result of using a biweekly payment schedule; that's without any increase to your monthly output. In other words, you'll get more value per dollar and save thousands as well; as much as 25% to 30% in interest over the life of the loan.

Combine the benefits of a biweekly payment schedule with a union between an Electronic Funds Transfer (EFT) mode of account servicing that is governed by Regulation "E" of the Federal Reserve to a plug into the internet and you will find a super-efficient, safe, consumer-friendly method of paying a monthly obligation that won't take a huge bite from one paycheck. It doesn't take nuclear physicists to understand why this type of arrangement is frequently referred to as the "Common Sense Mortgage".

Now that there's breathing room because money has been "freed-up" and also saved by using a service such as this, go on an excursion for some sunshine, sand and surf, have dinner at a five-star restaurant, or better still, invest in your financial future. It's your money. Once you've tried this equity acceleration program (EAP) for yourself, you'll realize its value.

With more available choices, creating enjoyable lifestyles and looking out for your family's financial well being is easier today than it ever has been. The bad news is that time is not on you side with a standard monthly mortgage payment on a 30 year loan. As a matter of fact, you are not getting the most for your money. The good news is that help is here; the technology does exists giving consumers unparalleled conveniences plus an advantaged boost.

Better Business Bureau (BBB) member, Bridgeco Central (BCC) is a distributor and national service provider in the U.S. of the on-line resource the Mortgage Manager Hi-Tech Mortgage Payment Service. To obtain an application to apply for the biweekly payment service at no cost visit http://www.eMortgageManager.net. A password-protected mortgage-auditing program is also included at no cost to the consumer after 6 months of using the service.

Welcome to the 21st Century.

For the latest free reprint articles by B.F. Boggan email articles@eMortgageManager.net.

Purchasing Property With No Money Down: My Personal Experience

Have you ever seen those infomercials about buying houses with "No Money Down?" They are really well done. They have all kinds of people offering great testimonials about how they have gotten rich, buying rental properties, with absolutely no money out of their pocket. You see this guy, standing on a street corner, talking to someone, and he says, "I own that one," pointing to a beautiful colonial. "I also own that one next to it, and the one two doors down, and I'll be closing on the one directly across the street from it, next week." He then assures us that he has purchased 17 homes in the last eight or ten months, with zero money down on the properties. Plus, in many cases he's also paid no closing costs.

And, let's not forget, this same guy is grossing tens of thousands of dollars monthly, and his net worth is nearly one million dollars. So, he says.

Now, all of this looks wonderful, so when the person selling the course that will teach you how to do this, at a nifty price of just $297.00, speaks, you are glued to his every word. "Real estate is the safest and fastest way to make money, today," the expert will tell you.

So, can this really be done? Can you purchase houses with no money down? Can you become a landlord in as little as one month's time and start raking in the cash from those rent payments? The answer is an absolute "Yes." It can be done, and I am proof positive, because I've done it. The question you should be asking yourself is not can I buy real estate with no money down, but should I?

You see, this is a question that the guy selling the No Money Down course, with all of his people and their great testimonials hopes you never ask. His advertising and marketing strategy would collapse, if he gave anyone a chance to ask this question, because he would be forced to lie if he answered it.

Rarely is the whole truth anywhere to be found in infomercials, especially when the advertising is about No Money Down real estate programs. The infomercial makes the idea and the program look so easy that any child could handle it. It makes it seem like every American should be doing it, and we'd all be millionaires. But every American is not doing it, and many of the ones who are doing it not only are not getting rich, they are actually going broke. The infomercial won't tell you this. That's why I'm here.

The Truth

Now, let's get started with the truth about buying real estate with no money down and the truth about being a landlord. The first thing you need to know is that they are both very bad ideas. Let me illustrate by using my own experience in these areas. I started buying rental property nearly 10 years ago. The first property I bought was a deal orchestrated by some real estate con artist, who told me I needed just $2,000 to take ownership of this home and, in the process, help out a woman who was about to be foreclosed upon.

In two years, she would clean up her credit, refinance the loan on the house, and I would make $10,000. Sounded good to someone who was quick to buy into anything that returned big dollars in a short time.

This worked for the first year, as the woman paid on time, and I pocketed an extra $100 monthly. Later, though, things began to collapse, as the house began to need repairs, all of which the woman couldn't afford, so I had to pay for them. I put nearly $5,000 into the house in a four-year period. When I was finally able to sell it, I didn't quite make back what I had put into it.

Meanwhile, I was eager to overcome this problem by adding many more. A slick mortgage broker got hooked up with an even slicker real estate prospector, and the two of them convinced me that they had a way I could buy houses rapidly, with absolutely no money out of my pocket. Although my experience will probably be enough to enlighten you to the pitfalls of this model and of being a landlord, let me say that I can't emphasize enough how dangerous buying property with no money down is.

In six months time, I had purchased eight houses - many with loans from the same wholesale lender. These lenders should have been concerned with all of the debt I was building, but they kept approving loans, based on my good credit and rents covering the mortgage payments. One of the biggest problems, which I was not experienced enough to detect, was that most of the rents were just $50 to $100 above the mortgage payment.

"Don't worry," the investor/ hustler would say. "You'll make all your money on volume. We'll get you into 30 or 40 houses, and you'll be pocketing $4,000 to $5,000 every month."

As you might imagine, my mind raced. I was making the huge deposits at that very moment. My bank account was fattening up at breakneck speed.

The Illusion

This is what people who buy houses, using the No Money Down plan envision happening. After all, if you can buy one house with no money down, why not five or ten or fifty? For some reason - the vision of the dollar sign, most likely - I failed to seriously consider the maintenance of these houses, the possibility of missed rent payments, and the chance that renters might actually stop paying, altogether, forcing me to evict them - a time-consuming and extremely costly undertaking.

As you may have already guessed, all of these things happened to me, after I had amassed 26 rental properties. In fact, oftentimes, all of these problems happened in the same month. Now, for awhile (when I had about 10 houses), if one person failed to pay rent, I could cover it with the nine other payments. But when two, three and sometimes even five tenants didn't pay in the same month, it was devastating to my business. I had to go to my business account and pay up to $3,000 at a time in mortgage payments, with no income to cover it. Plus, I had to pay a property management company to get my tenants to pay or to evict them.

Soon, this became the norm, not the exception. There were constant problems at my houses. Unhappy tenants led to poor upkeep of the property and even more maintenance problems. About one year, after I had amassed 26 houses, I was having problems with roughly 10-15 houses and/or tenants each week. I was evicting at least two tenants each month, and approximately four to seven tenants were either behind on rent or not paying at all. Promises were made, payment plans arranged and few, if any, ever followed through.

It didn't take long for me to realize that this was no way to make money in real estate. Consequently, I got rid of these houses as fast as I possibly could. There were plenty of buyers, willing to take over my headaches, because they had the ability to make it work, they believed.

In 10 years of being a landlord, I lost thousands of dollars and likely took some years away from my life with all the stress I had endured. So, whatever you do, avoid the No Money Down Trap. There are much better, still inexpensive ways to make money in real estate.

Learn the best ways at Directlendingsolutions.com

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