11 Negotiate with the vendor to delay paying the deposit
In this case you can try to negotiate with the vendor to actually delay paying the deposit. This is definitely legal provided you work with a lawyer that is in favour of helping the motivated vendor, as well as you.
What we are doing is we set the date of when you would want to pay for the deposit. Look, from the date that you sign the agreement, it may take from 3 to 6 months to actually cause the property to be unconditional and finally settled. In this case once your loan is approved, it may take several weeks or even one month or more for the money to be disbursed to the vendor.
This technique usually works during the buyer’s market. All the properties are forestalled and prices are moving sideways. This is when the vendor would like to get rid of the property as soon as they can. So you are in there to solve their problems. You actually sign the sales and purchase agreement. This means you are buying their property.
12 Negotiate with the vendor to pay the deposit in installments
Once you understand the concept of delayed settlement, you can actually delay paying the deposit, say 18 months, as long as this is done during the buyer’s market.
In other words, you can arrange with the vendor that you will pay the house price above the stated price in the S&P by say 1 or 2 thousand (just an example). This is so that you will be able to pay the deposit monthly. As long as it is not arranged as a ‘riba’ tool, you will be able to purchase the property with no money down and at the same time help the vendor to get additional money above the stated purchase price.
The vendor may accept that and may well appreciate your gesture. Lo and behold – you just created a no money down deal upfront. You can always lock this in the agreement if you so wish. This is why it is so cool if you have a lawyer who understands property investment on your side.
13 Sell to your friends two or more properties
If you’re willing to purchase two or three properties at the same time you are on your way to make more money. This is one of my favourite techniques. Because you actually accumulate the deposit as you sign on the sales and purchase agreement.
What you do is go around and find more properties. The idea is to help your investor friends to accumulate properties. But they don’t have the time and perhaps they don’t possess as much knowledge as you do in property investment.
So what you do is go around and search for a property and offer to your friend to purchase this property. You’re actually doing them favour for a small fee. If you find this kind of property you can always demand a good fee instead of a ransom. This is the money that you will use to pay for the deposit of your own property!