Property Sourcing Profits

If you’re just starting out, if you are building your property business today, if you Package Deals today, if you want to source and sell deals today, don't think to go up North, go to London! In and around London, in and around airports, that's where you need to be. 

KEY TAKEAWAYS

“David, Deal Packaging does it really work? Can I package deals in the South-East of England? Can I package deals in and around London? I don't think it works, I can't make the arithmetic work, I don't think it’s going to happen for me." 

I just want to say to everybody, that London is the best place for Deal Packaging today. If I was starting up today, I would go to London and earn my fortune in London. 

Everyone knows that my business concentrates in Manchester and I regret it badly. It was a massive mistake, it has cost me, without exaggerations, millions of pounds. 

Why would you set in London, Dave? What is it so special? As some of you know, when I started property, finance was very easy, you could set it up on the phone, so I went Manchester and started buying properties. I was buying them like Kit Kats, just for fun. 

It was an error. I should have gone to London and here is why. The value of the houses went down; we are now just about back where we were when the crash happened. Pre-crash values, 2007 values. 

If I would have gone to London, in 2004 and invested £1.000,000,000 in 4 properties, something that you could do in 2004 in London, but not today, imagine where would I have been now? It would cost me millions of pounds to do what I have done, in London today. 

Lots of investors only want to buy deals in and around London. They are not concerned about rent role, they are not concerned about the yield, they are not concerned about the return on capital employed today, they are not concerned about the conditions of the building, they don't mind if it's a bit run down, but they do mind the postcodes. The reason they want that is because, at the moment, there is a pause in the London market, but in twenty years the good prices will be in London. 

The South-East would be at the top of my list of places to go. There you can still get three beds, generous size, ex council, terraced property, in a decent area for less then £250k. 

You can get up to £3k a month, if you have Serviced Accommodation guests in your property. 

There is so much more to do in London and those areas, so many more strategies. There is not shortage of money in London. 

Invest your money in London! London going forward, once again it's going to lead the country in property prices when everything takes off again! 

Over time, Property prices go up! Properties in South of England grow more than properties in the North. 

Your investors need to invest in London. The returns they will get over time are going to beat anywhere else. 

On the investor side, get along to the property network meeting. There are dozens of them now, all in London. Build your profile, pick your favourite ones. 

Go and see agents. Put a serious proposition to them and they will listen to you. Find the money, go to auctions, everything you need is in those auctions houses. Don't buy the property, meet the people. 

Go to the South of the river to invest your money. I am really excited of the opportunities in South-East of London. 

Once you get a foot on the leather, you can move more central. Buy something a bit more trophy, that you will be proud to own. 

By investing in the right place, in five, ten years’ time your financial situation will be completely transformed. 

BEST MOMENTS

There are so many opportunities in and around London. Do not hesitate, if you need to start your property business today, do it there. 

It doesn't need to be the centre of London, it can be around London, target the airports. Package deals to serve airports on a Serviced Accommodation basis. You don't have to bash any walls out, you don't have to do Multi-Lets, just Serviced Accommodation for people that work at the airport, i.e. Harlow, for London Stansted. 

Start investing in London! 

VALUABLE RESOURCES

Rightmove

Zoopla

Progressive Property

Deal Packaging Course

Commercial Conversion Course

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

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

1. 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. 

1. 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.

1. 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. 

1. 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. 

1. 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. 

1. 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. 

1. 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. 

1. 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

In this episode, David Siegler shares why Deal Packaging is one of the fastest, most lucrative and hands-free property strategies around today, regardless of your credit rating and funds.

KEY TAKEAWAYS 

If you are going to Package Deals, make sure you do the job properly and professionally, serving your investor. That way you will get repeat business and recommendations from them, allowing you to build up your portfolio.  

Deal packaging is one of the fastest ways of generating cashflow in England. This strategy is fast and virtually free! You find the property, satisfy the investors' requests, then you take your payment and leave.

If you are stressing that you don’t have the funds, don’t worry, Deal Packaging is the strategy for you. You don’t need deposits, the investors do. You don’t do mortgages, application forms or any credit checks. Deal packaging could replace your daily and ordinary job, or just bring in income that you can save and leave in the bank until is enough to put deposits down, in order to build your own portfolio.

Deal packaging gives you the opportunity to earn money from property even if you are not buying properties yourself. Buy as many properties as you can and don’t just view them. Buy them and make sure they are right for your investor. 

Building your credibility with the estate agents is a very simple thing to do. Explain to them what you are doing, that you are working with investors to build your portfolio and you would like to work long-term with them as well. Prove you will buy one house per month from them, show them you have investors and you are looking to build a long term business relationship and they will offer you special treatment, putting you at the top of their investor list.

Are you a Deal Sourcer? Personally, I don’t identify myself as that these days, I think it has a bit of a negative connotation these days. Deal Sourcers are recognised as people that don’t really provide you with deals. All the properties they sell are identified coincidentally as BMV (Below Market Value) but in reality they are not. They might not be in areas in which you would want to rent a property. You will find repairs to do, have long void periods, all which will bring the cost of the house higher than you will expect.

Consider the area where you buy! A socially challenging area will compromise the value of the property.

BMV (Below Market value) We all want a discount on the market = BM. V=Value. If a house is below market value and sells at a price below market value, next time the landlord registers that street, the figures update and it says the new market value. You could have two identical houses on a street, only one has a shabby interior. One may sell for £70k, the other may sell for £50k. The one for £5k may need £20k worth of work on it, so the actual market value for that street would be £70k.

Deal Sourcers often don’t view the properties they buy for their investors. How can you value a house when you don’t go and view it? They rely on the vendor’s opinion on how the house looks of if it needs any repairs, etc. which I don’t personally believe is serving your investor. I always visit my properties before I buy them.

BEST MOMENTS

Another reason why I love deal packaging is because there are no tenants to deal with. It’s all the investors responsibility to deal with them. You source the property, help the investor tenant the property, take the money and move on to the next one.

These days, referral/recommendations are the most effective way to get new business leads.

Never depend on the vendors’ opinion regarding properties, or even the estate agents. You have to go and look at your property for yourself.

Just to make it absolutely clear, I can see a distinction between deal sourcing and deal packaging. Deal packaging is more of a rounded service.

VALUABLE RESOURCES

Progressive Property

Deal Packaging Course

Commercial Conversion Course

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. He's very active in this business at this time. 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

Learn what to look for, where to visit, who to speak to and what techniques to use in order to hunt out the lowest and most profitable deals for you and your business partners.

KEY TAKEAWAYS  

Script for entering letting agents: "I am acting for investors who want to buy in this area, this is what they're looking for."

Look for Victorian terraced properties. You can convert into HMOs. This will maximise rent roll and return. 

Source houses near hospitals. They're big employers. Areas of regeneration, near motorways. Anywhere we can guarantee a high occupancy.

Only work with cash-rich, highly qualified investors who want to buy for cash and then re-mortgage after the event. This is what I say: "I work with a group of highly qualified, cash rich investors who specifically want to invest in this area. I, or one of my friends are going to buy one of these houses."

Be aware of the type of estate agents you are visiting. If it's a one-man band, owner/drive, that's a really good thing. If it's a really bigger office, maybe they've got half a dozen regional offices, that's great too. If you go to one of the nationals, in one of their national offices, that's a really good thing. All slightly different, all great!

Inspect the leader board within the national offices. If they're at the bottom, they're more likely to offer you everything. They'll fall over themselves to do a deal with you. The cool kids at the top just want to kick sand in the face of everyone else below them in the league, so you'll receive a similar response from them.

Agents have a database of landlords, they may not necessarily want to sell, they may be looking to rent. In every agents' office, there's a hard-core of landlords wanting to get out of the business. The agents know who they are.

If you find a landlord on a downward spiral, looking to exit the business, you can source some great deals for your client investors. Get to know the agents and they'll link you.

It works and we love it. You've got to do it right and you've got to do it smart. Who are you going to write to and who are you going to target?

Individual vendors. You can research these yourself or outsource and leverage the task. Find them through the EPC in the estate agents' listing. Have a look through the online portals. You can find addresses, broadband speeds, Google Maps.

Zoopla. They have a choice of tabs at the top. Zoopla has a most reduced tab, the others don't. You can find all the analytics here. Once you've found the relevant information, move to Rightmove Sold, this is the only portal which includes every part of the property's address. This is how you find addresses for your Direct Mail campaign. 

If you see a For Sale sign on a door of a prospective deal, knock on the door! You need to hustle, it's vital.

VALUABLE RESOURCES

Rightmove

Zoopla

Progressive Property

Deal Packaging Course

Commercial Conversion Course

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

Investors – David shares where you can find them, where you can work with them and how you can make sure that they want to continue working with you. 

KEY TAKEAWAYS  

In deal packaging you need money and deals to build your business. If you are new to this industry, look for the money first, look for an investor and afterwards you will be able to get the deals.

Attend the property network events to build your network database. You have to attend those events and keep on going, become a regular in the community and get yourself known.

Get close to your network meeting host. He has everything you need, he knows everyone in that room and who could potentially be your future investor. Working in the events team of your community, above the ordinary delegate, will raise your profile.

Stand up, speak, tell people what you do and be heard. You need to do this in order for the investor to notice you and be interested in your business proposal. If they come and talk to you, make sure you are always ready and you have an elevator pitch prepared.  I usually say, “Hi, I’m David Siegler, I work in property and what I do is increase the wealth of my investors."  

The money is the follow up! If you find someone who seems interested in what you do and how you do it, meet up with them and talk about your business.  

Arrange to meet as many times as it takes, just follow up! Just tell them it was very interesting talking to them and ask them if they don’t mind, you could give them a call this week to meet for a cup of coffee?

If they say yes, you have to give them a ring! Don’t forget to remind them about you and ask them when it would be better for them to meet, give them different options, they might be quite busy. When you meet up, explore with your investor what common ground you have to build a portfolio together.

When you stand up and make yourself heard in the meetings network make sure you won’t say what everyone else says, stand out from the crowd and be memorable. Make yourself different from anyone else in the room.

Once you have got your first investors, it is very important you take care of them. Serve them properly because they will be your reference for your future investors. 

Another amazing source of investors is online networking. You could advertise your business, explain what you do and show picture of you being productive. You could edit your video and upload it on Facebook, telling people in no more then 90 seconds, everything about your property business.

LinkedIn is the other amazing source of investors, like Facebook, just that this platform is designed with a professional purpose.  

BEST MOMENTS 

When I first started out, I found out everything by myself. It wasn’t as easy as it is today, we didn’t have the availability of the knowledge there is today.

A tip I have learnt from Rob Moore, cofounder of Progressive Property, is that to build a portfolio, you need get yourself a folio. By folio he meant a really smart presenter and inside it there are clear plastic wallets in which you can present your own deals concluded. That will help you prove your credibility with the investors.

At one network event I stood up and said: "I bought a pub, it's very, very ugly. I don’t know why I did it, it cost me £80k. On the other hand, I have spoken to the planners and they said I could convert it in ten beds HMOs, but that is going to cost another £80k. The good news is that the pre-evaluation is roundabout £400k. If anyone is interested, please, do approach me during the break. "One man came and bought the deal as a result of that conversation, for a £15k Deal Packaging fee.

Don’t only sell deals to your investor, identify your clients' needs and what worries them and find a solution to their pain. It will get you friends, not only investors. If you produce those solutions for your investor, you will have a large amount of business because they will refer you to their friends, seeing your good performance.

Ask for recommendations/referrals! You could say: “Thank you very much for spending this time with me, now that you understand what I do, is there anyone that you consider might benefit having a cup of coffee with me and talk it through?"

VALUABLE RESOURCES

Progressive Property

Deal Packaging Course

Commercial Conversion Course

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

Rob’s Facebook
Rob’s Instagram

Rob’s LinkedIn