There a lot of people who get a bit concerned when they think about buying properties below market value.

They often ask, “Well, is it really fair on the seller?”

And I must admit, I asked this same question when I first learned about this method back in 2006. I was taught by an investor based in Leeds named David.

He was buying in properties in Durham for 30% below market value. And he was doing one deal every single month using this method.

I asked myself, I said, “Hang on a minute. Is that is that really fair? Is it really ethical to do that?”

Well, in this blog, I’ll help you understand how you can help Motivated Sellers and create Win-Win property deals. I’ll also give you a real world case study from one of our Masterminders who put these strategies into action.

Remember, if you find this advice helpful, you can access more strategies and resources by becoming a pin member.

A Motivated Seller is someone who has a problem with a property they’re selling that they need solving.

And so, I believe that what we’re doing is we are helping these people. We’re giving people an alternative solution. We’re saying, “Look, I can do this for you.”

If you want more information on Motivated Sellers and how you can get the best deal for them, read our blog on what questions you should be asking.

Now, for some people, buying at a discount is not going to work. Probably for most people, it’s not going to work.

However, when we find people who are genuinely motivated and their problem is bigger than the amount of money they’re going to get, they just want to solve that problem.

That is where we can create a Win-Win deal on the property.

Let me give you a great example.

Last week, one of our Masterminders completed on a deal.

Steve had actually completed his Mastermind course many, many years ago and has stayed in property ever since.

He’s got a multi-million pound portfolio and told me recently that “it’s an amazing time to be doing deals.”

He was contacted on the 15th of December by someone who had just had a sale fall through.

Now, in the UK, 1 in 3 sales fall through. I want you to think about this for a moment.

If you’ve ever sold a property, you know it’s not an enjoyable experience.

You put the house on the market, you have someone who finally comes along, gives you an offer, you accept, and it starts moving along.

And then maybe months later when you’ve already mentally moved on, you get a call from your solicitor.

“I’m sorry, the sale’s not happening.”

And it’s an absolute nightmare. You’re back to square one.

The seller was an 85 year-old gentleman. He was living in Staffordshire and, being quite old, he wanted to spend a bit more time with family.

His daughter lived up in Scotland and he wanted to move closer to her.

He had found a lovely property by the seaside that was 10 minutes drive from his daughter.

So, he had his property on the market for £325,000.

But he needed to sell.

So, he dropped the price down to £300,000 and eventually he accepted an offer for £275,000. The property was probably worth about £300,000 slightly below market value.

But he was happy to accept that because it was more important for him to move up to Scotland to live close to his daughter and his grandkids.

That’s what he wanted to do for the rest of his life.

But, unfortunately, the sale dragged on and, eventually, fell through.

The seller was supposed to be completing his purchase on the Scotland property at the end of January.

But, with his sale falling through on the 15th December, it didn’t give him much time to save his dream home.

So, he reached out to Steve. Steve went round to the property within 24 hours.

That’s a really important point when you’re dealing with Motivated Sellers.

They need speed and certainty.

If someone says “I really need to sell my house”, and you say, “Yeah, well, I’ll come around next week sometime.” That’s not going to work.

You need to go around quickly.

Steve took the time to build the relationship with the property owner to find out what the problem was and what was important to him.

He spent a few hours in his house and slowly built that connection. But that didn’t stop when he left for the day.

Whenever the seller had a question, he was responding the same day to show him that he would keep his word.

He would do the transaction as quick as it was needed, especially as he was let down by someone else in the past.

Steve was aware from the conversation that a couple of other companies had spoken to this gentleman and one had offered him £240,000.

Bear in mind, it was originally at £325,000. Someone else had even offered him £225,000.

But Steve really understood what the seller needed.

He said, “Look, if you really want to do it quickly, I can do that, but I’m going to have to buy cash. That’s expensive for me to do.”

The seller said, “Yes, as long as you do it in the time scale, we’re happy to move forward.”

Now, the agreed price was £190,000, significantly less than two other offers. So, Steve asked the seller, “Why did you go with me in the end?”

“Well, first of all, you took the time to get to know me, Steve. You asked me questions. You found out what I wanted.

The other two, they came in, took a quick look around, made a really low offer. One even made me a low offer without even visiting the property.”

By the way, never do that. Never make an offer to someone that’s really low without actually looking at the property.

People get offended. Make sure you go around and view the property.

So, Steve did what he said he would do. He didn’t mess him around. He delivered on the sale and the seller was able to move into his dream home.

Steve had built this great rapport with the seller and he did what he said he was going to do. It was ethical.

Now, is it ethical to buy at such a discount?

Well, he’s giving the seller a solution. The seller doesn’t have to take that solution if he doesn’t want to.

So, I think as long as you stick to your word and you’re giving someone a solution to their problem, that’s absolutely ethical.

What isn’t ethical are the people or companies out there who will say, “Oh, by the way, we can’t give you that offer I made before.”

That is unethical. You’re messing people around. You’re taking advantage of the fact that they need to get a quick solution.

So, don’t do that. That’s totally unethical.

And after all, I think you want to sleep well at night knowing that you’re helping people. You’re putting some good karma out there.

If people want to sell at a certain price, great. If they don’t, no problem at all.

When you make these low offers to people, remember to follow up.

That’s one of my 5 Golden Rules to do more deals.

• Step 1: Make sure you work with Motivated Sellers.
• Step 2: Run the numbers, check the cash flow and the ROI. Is it a good deal?
• Step 3: Go and view the property.
• Step 4: Make an offer on every single property we visit.
• Step 5: Follow up because we expect them to say no to the offer that we make.

Steve had a a significant discount. Over £100,000 off the true value of the property.

Although he bought it cash, he can now instantly refinance with the new same day refinance available.

We’re teaching that at our event coming up in March: Strategy Implementation Live.

So, make sure you’ve got your ticket for that.

I believe Steve’s going to spend about £25,000 just modernising the property.

He’s then going to use it for Serviced Accommodation and it should be a very, very profitable project.

This was truly win-win investing.

It was a Motivated Seller.

Steve understood what he wanted. He solved the problem and the seller was absolutely delighted with the solution.

Steve got a property, probably £100K of instant equity, able to refinance his money straight away. So, he’s very happy with the deal as well.

And it all comes from looking forthis ethical win-win solution. Asking the seller, “What do you want? What’s most important to you?” And seeing if we can solve the problem.

Now, sometimes we can’t solve the problem. We can’t give them as much they need. We can’t do it as quick as they need.

So, maybe we can just give them a bit of advice. Show them another alternative.

If people don’t have to sell their house, we shouldn’t encourage them to do so.

Sometimes, there’s something else they could do. They can refinance or get some money from elsewhere. We should tell them that.

If they have to sell and we can give them a solution that does work for them and works for us, well then that is the true ethical solution.

You could be whatever kind of investor you want.

But why not be an ethical investor? An investor that puts the seller first. An investor that asks, “How can I help you?”

If you do, I promise you, you’ll do more deals. You will make more money and you’ll sleep better at night.

There are people who are out to scam people. That’s up to them. But I believe karma is going to come back and get them many times over.

I believe in the effect of cause and effect in the universe.

So, of course, be an investor. Look for great deals. This is a business, after all.

But please, please make sure you’re ethical.

Make sure you get great win-win deals agreed every time.

And, remember, if you’re looking to expand you’re property investment network and find other ethical investors, book on to your local pin meeting today!

1. What is a Motivated Seller?
A Motivated Seller is someone who has a problem with their property that they need solving. The problem itself could be a range of different things. Whatever it is, the key thing to note is that they are looking for someone to solve that problem for them. That’s where you come in as an ethical investor.

2. What is a win-win deal in property investment?
A win-win deal is one that is good for both you and the seller. In the case study above, Steve was able to get a property at a significant discount. Meanwhile, the seller was able to buy their dream home in Scotland and move closer to their daughter. Therefore, this deal benefited both parties and is a win-win.

3. How do I create a win-win deal?
The key to creating a win-win deal is to first of all find a Motivated Seller. Then, spend some time building a relationship with that seller. Make sure you listen to them and find out what problem they have that needs solving. Analyse what you need to get from the deal, and then propose a solution that benefits you both.

4. What are the 5 Golden Rules of Property Investment?
The 5 Golden Rules are crucial for anyone who wants to make more deals in property. Step one is to make sure you work with Motivated Sellers. Step two is to run the numbers, check the cash flow, the ROI, see if it is a good deal. If it looks like a good deal and the numbers work, step three is to go and view the property. Step four is to make an offer on every single property you visit. And step five is to follow up because we expect them to say no to the first offer that we make.

5. What do I do if I can’t solve the seller’s problem?
If you can’t directly solve the seller’s problem by taking the property off their hands, there are still ways that you can help them. You could give them a bit of advice and help show them another alternative. For example, if someone doesn’t have to sell their property, don’t encourage them to. Work with them and help them find whatever solution works for them.

Founded in 2003 by Simon Zutshi, property investors network (pin) is the UK’s longest-running and pioneering property training and networking organisation. We cater for all levels of investors from beginners learning how to start in property to experienced professionals looking to scale. With monthly property networking meetings across the UK, online workshops and hands-on coaching programmes, pin has supported thousands of people to build knowledge, confidence and profitable portfolios. Unlike estate agents or deal sellers, pin focuses purely on UK property training and education, providing a safe and inspiring community for anyone serious about property investing.