#04 - 9 Killer Property Sourcing Strategies

An in-depth look at these Deal Packaging strategies. Discover what they are and how to use them to generate a high cashflow. KEY TAKEAWAYS UNQUALIFIED LEADS Unqualified leads, I need to make this very clear, are not leads and not deals. These leads are in response to your marketing. If you know someone is selling a deal, but you don't have a contact yet or a proper way to get in touch with the vendor, you will still be able to find your investor out there.  There are investors that buy these deals from unqualified leads. They will qualify them themselves and they will then try to push through and get a deal. Make it clear when you advertise what you are selling, that they are just leads, not deals. Sell them in bulk and maybe charge £5 to £15 per lead. People buy those leads and qualify them themselves.  QUALIFIED LEADS Finding leads is qualified leads. It is one step further; you actually do a bit more work. You have actually contacted the prospective vendor, but never got a deal out of him and decide to sell further the lead. You can charge maybe £15 per lead because it is more qualified. FINDERS FEE Respond to an unqualified lead, qualify the lead, retain it yourself and the vendor doesn’t go missing. Arrange a meeting with the vendor and go and see the house before buying. You cannot find a sweet deal without going to see the house. Find out the conditions of the house. This is where the money ramps and it gets more interesting! You get a much better return for the effort that you make. It doesn't need to be you that goes and inspects all the properties, friends in the industry could do it for you and take picture of the deals.  Deal Packaging is not about the properties, it's more about the people that own the house, working with the vendor and easing their pain! When you're healing people's problems, satisfying the investor and making profit for yourself, you are moving everybody forward.  PRE-PACKAGED DEALS Not only you do find the house but you need to access your power team to fulfil the project. Let me explain what I mean by that. Buy properties that are in poor conditions and need working. Improve the conditions of the house by repairing and cleaning professionally the ins and outs. This will add extra value to the property and you will be able to make a good profit on it.  RENT TO RENT, LEASE OPTIONS There are two categories there, but one kind of grows from the other. There are a lot of people out there who buy Rent to Rent deals for Single Sets or Multiple Lets. Rent to Rent means renting the property from the landlord with the purpose to rent it out yourself, and you have the option to buy the house later on in order to build your own legacy. Not ready to buy now? Not a problem, get a profit from that rent every month, maybe convert it into Multi-Lets and double the income. In not long you will have a deposit to buy that house.  ­­­­­06. FLIPS Flips are great! I really enjoy doing flips. It's buying a property, adding value and sale it for a profit.  Buy, Refurbish & Sell! I prefer to Buy and sell, I don't like to refurbish, lose time and money. Buy and flip, making profit.  ASSISTED SALES You have to use an assisted sale contract. Some properties cannot sell, not because of structural problems, but because they are very dated, too run down to bring them up to standard. We do a deal with the vendor, in which we decide the value of the house before any changes or value added on by us. That is what we owe the vendor.  The vendor owns the house, we put an assisted sale contract in place. It is very important to write a legal framework for this to protect your situation. Repair the house, add value and sell it for a higher amount than you have bought it for, because you improved the quality of the property.  PORTFOLIO BUILDING What is portfolio building? I will tell you what I think portfolio building is. It is putting together a number of properties for one investor.  Very rarely you will meet an investor that buys just one deal. If you keep your word and do what you've promised to do, serving them properly and satisfying their requests, they will buy again and again.  It is very very important that you don't just hit and run, which is why you have to go and view the properties that you place with the investor. You have to do your do due diligence. You have to know that you offer great value and then the investor will work with you again and again and again.  BUY IT YOURSELF First time I have heard that, I thought that it isn’t a Deal Packaging strategy! However, I have done a complete U turn on this, now I believe that buying yourself as Deal Packagers is completely a Deal Packaging strategy.  We all came into property business to build our own legacy, our own portfolio. Deal Packaging is a great cashflow strategy, it also means that we source a lot of deals. Sometimes, when I am sourcing properties, the figures are so compelling, the figures are so attractive, that I have to act and buy it myself and put it in my own portfolio.  BEST MOMENTS Finders Fees are one of my favourite sweet spot. This is where I can earn a decent fee for a minimum amount of work.  Flips are very very powerful! Once I bought a house in a very poor condition, very old. I have invested £45,250k in that property and without any work inside or outside, I have flipped the house for £65,250. We made £20k profit without doing any work.  Assisted Sale is one strategy you should pursue, especially in London where it is full of semi-detached houses. Tired, old, Victorian houses that you could buy for a very cheap deal. It is a really cost effective way of moving your property business forward.  You have to source Assisted Sales.  Portfolio Building is really, really important! It it a great source of new business for you, working with your existing investors clients.  VALUABLE RESOURCES Progressive Property Deal Packaging Course Rent to Rent ABOUT THE HOST  David is a property expert with over 25 years’ experience and his own portfolio of 26 units. His current rent roll is in excess of £10k per month. He is also a partner in a Deal Sourcing and Packaging business in the North West of England and has sourced over 250 properties for investors since 2004. In recent years he has, by necessity, had to develop an expertise in LHA strategies. This area is increasingly becoming a niche for him and he enjoys empowering other landlords by sharing the knowledge he has gained. The ultimate purpose when sourcing properties in this sector for investors is to minimise risk while maximising profit. He has had to find answers to the challenges of Tenant Find, Management, ensuring rents are paid and the transition to Universal Credit. These are strategies he uses in his own business and also on behalf of investors. His investor clients regularly achieve annual gross yields of over 20% with high occupancy rates and voids resolved, sometimes within hours. CONTACTS David’s LinkedIn David’s Facebook