Session 4. If Someone Come To You and Ask You, Can You Teach Me How To Do NMD deal?

Looking for NMD deal in the property market is like looking for GEM
Honestly, it is not easy for us to do it, but of course there is a way.

It is not that we smart or talent in prop investment, we have learned it along the property investment for past 5-10 years.
With our years of experience in the property market, we have spend 30-50k to learn the property investment, property seminar, property talks and property course.


NMD is mainly for beginner, and help to increase the portfolio
NMD deal is mainly on subsales properties

To look for GEM, first we have to view on the average 20-30 units of properties.

Firstly, we have to hit our first criteria: BMV (below market value) more than 15%, where market value is below bank value
Second criteria, Rental yield is more than 6% or at least rental can cover monthly instalment

If you can find such properties, and owner allow us to mark up, it is NMD deal, basically we do not need to come out with fund to buy this property.
The only time to come out with money is the 10% downpayment, and after 3+1 months, we will able to take back the fund after full disbursement.

How to negotiate a NMD deal?

Rental: RM1100
Bank value: RM220k
Asking from owner: RM200k
Our maximum purchase price: RM180k
BMV: 18%
Rental yield: 6%

Why RM180k?
It is in order to match our NMD criteria as mentioned above

After viewing, we come out with ridiculous offer
“We think there are lots of things need to refurbish, this one no good, that one no good, this one leaking, that one parquet worn out already.”
Then give ridiculous offer, RM150k.

Normally, if owner is genuine want to sell, most of the time they will come back with counter offer
Just imagine, if you are owner, genuinely want to dispose off your property.
If there is keen buyer offers you a price, which you think is low, you will also counter offer offer back.

Maybe owner will response:
“RM150k cannot lah, the is no way man, too low!”
“OKie, I offer you last price, it is really last price already RM197k”

If the price still consider very high for buyer, maybe buyer will response:
“RM197K cannot lah, still very high!”
“OKie lah, RM180k can or not?”

If really owner think RM197k is the last price that can tolerate, then as buyer, we just ignore the deal as it. As it is no way near our target price.

Don’t feel sad or demotivated if we can’t close our first or second deal at our target price
As we move on to 3rd, 4th and more viewing, surely there is owner willing to let go his unit and the reasonable target price


Some people said this is unethical to do mark up, as it seems like the owner not selling at optimum price; or is it good if we taking loan at higher value from bank and in fact buy at lower value.
Normally there are reasons why the property has to sell below bank value to the buyer.

To be continue in next session…

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