Welcome back to the Property Sourcing Profits Podcast. In today’s episode, David shows you how to get started in property, begin sourcing deals, selling deals and getting paid. David goes on share a real life case study of an up and coming deal packager, out there looking at deals.

Discover what you need to do to get started and the returns you need to target in order to begin making a career out of property sourcing.  If you’re looking to secure property sourcing profits and learn how to calculate your investor ROI on the stop, this episode if for you.

KEY TAKEAWAYS

• Whilst you’re establishing your trade and scoping out your business, your goldmine area might not be the best place to start. You need to go where there is a low threshold cost of entry so that you can practice your skills and hone in on your techniques.
  
  

Case Study: This investor wanted to invest in and around Leeds, his goldmine area. As a test and to improve his property sourcing techniques we decided to start investing in Halifax which has a low cost of entry. We were looking for houses with a minimum of two bedrooms and a maximum of three bedrooms between £45,000 and £60,000 in the Halifax area. This search brought up over 50 houses that we could go and view. We were not looking for a refurbishment project, we were looking for a house that needed a little amount of work to be brought up to a lettable condition. We then looked at the rental value and saw rents of £450 pcm.

The target was to get a rental value of £450 pcm. That’s an annual gross £5,400, divided by 12 months, this generates the investor a gross yield or 9%. This is the return on investment from a £60,000 house.

If you know how to find the deal the investors will come. All you need to do is secure a property with 45-50p in the pound of the uplifted value will (the refurbished value of the property).

BEST MOMENTS
“The purpose of this was to get experience in property sourcing and to test his systems and processes when sourcing property deals. “

“Remember we don’t always know who the investor who purchases our deals is, so we need to make sure the deal is attractive.”

“9% is an attractive deal for an investor. You will sell that deal.”

”Get the investor through the door on and create a cashflowing asset that grosses at 9-10%”

“You don’t need a detailed deal analysis, you just need a pen, paper and calculator.”

“Gross rent roll for the year divided by the cost per purchase and express it as a percentage.”

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.

CONTACT METHOD
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