Property Sourcing Profits

‘As deal packagers, we need investors and deals,  it’s a people business’

In this episode, David answers questions from the Progressive Community. He has reached out and asked – ‘What’s stopping you moving forward?’ and shares in-depth advice in response to specific questions around deal packaging and deal sourcing.

The questions are wide-ranging but there are key messages for every deal packager and deal sourcer listen in and find out what you should and should be doing on

your journey to success in deal packaging.

KEY TAKEAWAYS

Investors and deals

• The investor side is the most important element of the business and you must have an investor and understand their criteria to be able to source a deal that meets the required criteria.
• You only need two investors to operate your deal packaging business.
• If you do not know what the criteria of your investor are you cannot source a deal.

Getting an Investor

• The quickest way currently is by building yourself an online profile
• You need to let people see who you are now, that you are committed to property and are honest.
• Join in with conversations and share your journey building your credibility online.
• Make short videos about yourself and what you are doing to help potential investors get to know you.

Getting a deal

• You must have an investor before you begin sourcing a deal so that any property sourced meets their required criteria.
• As a deal packager, you have to present deals that offer value for the investor
• Unless you have qualified investors with money available you cannot source or package a deal

It’s a people business

• Property is a people business and relies on the relationships and trust you build with others.
• If you have a positive relationship with the investor and are about to begin work for them a reservation fee can be requested to ensure commitment, this is fully refundable if you are unable to source a deal or forms part of your fee as the deal packager.
• A seller is not committed until the exchange of contracts. You can mitigate the likelihood of losing a seller if you have a positive relationship with the estate agent. They will be able to qualify the vendor.
• If you are working directly to vendor you are in a position to judge the vendor yourself.

Marketing

• You don’t have to spend any money on marketing when you begin, building your profile through social media will bring people to you.
• Building your investor list is at the heart of your business as a deal packager and you must put yourself out there across social media and in-person

BEST MOMENTS

‘Blog your way forward, talk about who you are and how you’re  moving from being a beginner, others will emphasise with you’

‘If they are not qualified investors they are just people you have spoken with’

‘Build your relationship with the investor so you have a clear understanding of their criteria. This means you can effectively source a property for them’

VALUABLE RESOURCES 

Property Sourcing Profits Podcast

https://www.progressiveproperty.co.uk/

https://unlimited-success.co.uk/

https://www.facebook.com/groups/progressivepropertycommunity/

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

https://www.linkedin.com/in/david-siegler-7b126316/

https://www.facebook.com/DavidSieglerInvestments/  

‘There is no conformity at all‘

In this episode, David shares the current situation nationwide concerning banding for council tax of HMO’s.

The legislation allows for the ‘discretion of the assessing officer’ and there is now a  lack of conformity across authorities.

If you are a deal packager or deal sourcer this podcast has vital information that you need to know about, Listen in now

KEY TAKEAWAYS

• The VOA(valuation office) for council tax is looking at HMOs and in certain circumstances taking an HMO that was previously banded for council tax as a single property with one landlord and banding the rooms individually. This results in a separate council tax bill for each room.
• Currently, there is not continuity across councils, no national uniformity about how HMOs will be banded for council tax purposes.
• In some local authorities just having a lock on a room can mean the room can be banded individually for council tax.
• The legislation talks about properties which have had fundamental changes made. This allows the discretion of the assessing officer to band the rooms.
• If the property is converted into individual letting units, self-contained with kitchenettes and en-suites the rooms may be banded independently for tax.
• As a deal packager, you must make sure the investor understands the threat that at some time in the future rooms in an HMO could be banded individually for council tax.

BEST MOMENTS

‘I don’t want to sell a deal based on council tax for the building and then suddenly the investor finds the VOA re-evaluating each room individually for council tax’

‘If you have a 2 or 3 storey property with a kitchen on each floor you may be banded independently for each room or you may not be’

VALUABLE RESOURCES 

Property Sourcing Profits Podcast

https://www.progressiveproperty.co.uk/

https://unlimited-success.co.uk/

https://www.facebook.com/groups/progressivepropertycommunity/

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

https://www.linkedin.com/in/david-siegler-7b126316/

https://www.facebook.com/DavidSieglerInvestments/  

‘The skills that you learn in deal packaging can be used across different areas of property’ 

In this episode, David is in conversation with Ben Chambers who shares his progress as a property sourcer. 

Ben was new to property when he came to Progressive in 2018. He went through the Deal Packaging training and the DP Mastermind and in the final month of his Mastermind , at the end of 2018 he had completed ...... one deal 

However he kept on going, implementing what he had learned and in the next 8 months he sold another 15 deals. Hear how he did it. Consistency is the key.  

KEY TAKEAWAYS 

My property journey began with a post on LinkedIn from Rob Moore about the ‘5 am club’, which was a standing joke in our house. 

The algorithms resulted in more information from Rob and Progressive popping up and led to my attendance at the deal packaging course. 

We then set up a deal packaging business 

It took me nearly 6 months to get the first deal but following that we have completed on average 2 deals a month. 

This was another income stream and I wanted to build something. 

Don’t quit if you’ve gone through the training, believe in yourself. It takes time to build trust and relationships. 

Having a sales background means referrals are really important to me. Even if you don’t get any more from the initial investor they can help you find investors through their recommendation. 

Referrals and recommendations can build your business but if you want to scale it you have to go beyond that 

I am on LinkedIn but most of my property stuff is on Facebook I find it an easy platform to navigate. 

Ideally, I  source to order as it provides a tick list of what you are looking for. 

But I keep a pool of potential investors who I can approach if I find a deal that is potentially interesting to them. 

Most investors will want to buy more than one property and we are now moving into reinvestment with our investors and we will continue to work with those people. 

They work with us because I know the area, I’m very accessible and front-facing 

There are different levels of service but I believe if an investor relies on you for advice and knowledge they will return. 

BEST MOMENTS 

‘It would have been really easy to go back to the safety of my secure job’ 

‘We take our investors and potential clients to visit our current sites so it's vital that our sites are tidy as we could drop in at any time’ 

‘I’ve run the 2 businesses side by side there is always a way’ 

VALUABLE RESOURCES  

Property Sourcing Profits Podcast 

https://www.progressiveproperty.co.uk/ 

https://unlimited-success.co.uk/ 

https://www.facebook.com/groups/progressivepropertycommunity/ 

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 

https://www.linkedin.com/in/david-siegler-7b126316/ 

https://www.facebook.com/DavidSieglerInvestments/ 

‘It’s a people business, not a property business if you can find out about the people issues you can find a way forward’ 

In this episode, David is joined by Cheryl Siegler,  a property expert who knows and understands the ebb and flow and nuances of property issues. 

Together they are answering questions from the Progressive Community, deep diving to provide great value and the benefit of their extensive experience. 

These questions are critical to your property success so listen in and make sure you are on the road to success. 

KEY TAKEAWAYS 

You must have investors in place and know their criteria They should know what to expect when you contact them. 

Always try to have a backup investor,  pre-qualify a second investor 

Just 2 investors can get you moving, one as your principal investor and the second as back up. Get them in place and when you find a deal that meets their criteria you can move quickly.  

You need to know about the circumstances, why it's fallen into disrepair. 

It could be either a gold mine or a money pit. Proceed with caution and find out as much as you can. 

If you cannot contact the owner use the land registry to find out who owns it and whether it has any mortgage. 

It’s a people business, not a property business if you can find out about the people issues you can find a way forward. 

Every time you are within 1 metre of someone tell them what you are doing, start telling everyone what you are going to do and how you are learning to be good at it. 

Attend events and network with others you don’t get the deal on the first date, it’s about building a relationship. 

If you pick up 1 investor a month, every month for a year you will have a business that could earn you 6 figures.  

Always begin with “how can I help?’ and then listen, it’s the key question, you are there for a reason. 

You need to find out what the investor wants and they will want to know about your credentials. If you are starting out you can borrow the credibility of the people who are coaching and mentoring you. 

You should practice what you want to say so you are confident when you sit down with the potential investor. 

BEST MOMENTS 

‘Investors that I take round are always impressed’ 

In my experience, investors are happier waiting for the right deal 

‘I was inspired by Rob Moore and Mark Homer at Multiple Streams of Income’ 

‘If you are confident it inspires confidence in others’ 

VALUABLE RESOURCES  

Property Sourcing Profits Podcast 

https://www.progressiveproperty.co.uk/ 

https://unlimited-success.co.uk/ 

https://www.facebook.com/groups/progressivepropertycommunity/ 

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 

https://www.linkedin.com/in/david-siegler-7b126316/ 

https://www.facebook.com/DavidSieglerInvestments/

Estate agents are a massive part of the industry, but what happens when you just can’t seem to source the deals you want from them? Is there anything you can do about it?

Did you know that according to some research, Rightmove still has 90% of all property listings? Like it or not, when it comes to sourcing deals, they’re a force to be reckoned with, and with David’s help, you can move things forward when it comes to your estate agent dealings. 

KEY TAKEAWAYS

• The great thing about deal packaging is that it includes all the skills you need for every other property investment strategy.
• The key thing is not to go on multiple viewings. It’s not to find the deal as soon as possible. It’s building relationships with estate agents. By doing that you’ll get a better quality of deal from them, both off and on market.
• Key members of any estate agency are generally not the ones who do the viewings. Showing you around a property is a low-level task usually given to new starters or those with less experience.
• Before you speak to an estate agent, get to know where it is you’re working. Use Rightmove to decide which area is best for your strategy.
• Talking to your local estate agent is the next step. Call and make a note of who you’ve spoken to. Be explicit about your plans. Let them know that you’d like to build a relationship going forward and then pause… Give them a chance to take in what you’ve said.
• Be sure that you know your type of investor before you go making offers. Make sure you’ve got investors in mind. You need investors and deals simmering together.

BEST MOMENTS

‘It’s all about the relationship’

‘I’ve shown that I’m credible’

‘You are immediately a special customer’

’The way that you say it is as important as what you say’

‘We are not flinging mud at the wall'

VALUABLE RESOURCES

Property Sourcing Profits Podcast

https://www.progressiveproperty.co.uk/

https://unlimited-success.co.uk/

https://www.facebook.com/groups/progressivepropertycommunity/

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

https://www.linkedin.com/in/david-siegler-7b126316/

https://www.facebook.com/DavidSieglerInvestments/ 

If you’re new to deal packaging, then you might feel a little bit lost! Which assets do you need in order to get started on your journey?

Well thankfully, it’s a question that David was asked to answer lately, so he’s here with you today to share his list with you. These are assets you need to have in order to allow investors to invest in your deals as painlessly as possible, and it’s a list that might surprise you…

KEY TAKEAWAYS

• Solicitors - Trade solicitors or property solicitors, preferably property investors themselves. David suggest finding two.
• Brokers - Brokers are key! Not all investors are cash-rich, and for those times in which you need a mortgage, then a good buy-to-let broker or commercial broker is essential.
• Builders - Building a good relationship with reliable, affordable builders who deliver results can turn a property into a profitable enterprise in an instant. If you can’t get a referral, try Check-A-Trade.
• Accountant - How are you going to trade? As a sole trader? As a limited company? An LLP? It’s best to get as much advice as you can from someone who knows the best way to do it. Not only can they stop you making mistakes, they can also help you save money by pointing out benefits you might not know about.
• Gross yield at approaching ten percent is what you need in a deal. If you don’t find it immediately then don’t stop! Large houses turned into flats are a great way to maximise that gross yield.
• Assisted sales are working in London today. You need to know what you’re doing as they’re quite technical, but the principle is that instead of buying a property and remodelling it, then selling at a profit, an assisted sale is where you simply improve the property and help it to sell, then take a profit. You need a good property solicitor to help with the legalese.
• These assets can be found by asking! Ask the community. Ask other brokers. Ask social network groups, or ask at networking events.

BEST MOMENTS

’The assets you need, basically, are people’

’The process was so much easier because I had an existing relationship with the lender’

‘Certain strategies work better in certain parts of the country’

‘You’re getting very close to the grail of ten percent!’

‘I have one or two friends in London who are doing this today!'

‘We have to think a little differently' 

VALUABLE RESOURCES

Property Sourcing Profits Podcast

https://www.progressiveproperty.co.uk/

https://unlimited-success.co.uk/

https://www.facebook.com/groups/progressivepropertycommunity/

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

https://www.linkedin.com/in/david-siegler-7b126316/

https://www.facebook.com/DavidSieglerInvestments/ 

In this episode, David unleashes the strategy that’s guaranteed to work when you’re trying to source deals and find your goldmine area. He also covers the importance of doing certain things when sourcing the deals, listen to this episode to find out more!  

KEY TAKEAWAYS 

• Where can I find my investors?  

• Put yourself out there, shout about what you do, your experience and your town. Be present on social media in particularly.  
• If there’s nothing out on social media about you doing deals, then no one’s going to know you’re doing them. 
• Many people start of nervous and scared but you’ve got to tell yourself what’s the worst that can happen by putting yourself out there? 
• Where can I find my deals? 
• If you’re looking for an area to find deals in, physically go to every lettings agent in your town and tell them who you are, what you’re doing and the level of your experience. Let them know you’ve got investors that you need to serve then ask them where you can source the best cash flowing deals for your investors.  

• At the same time tell them that they need to be hands free investments so you’ll need the lettings agents to manage them after the process has completed.  
• Have the same conversation with all of the different lettings agents and they’ll all tell you where they would buy if they were an investor. 
• After all of the lettings agents give you their recommended areas, print out a map of your town and overlay the information you’ve been given all on top of each other. 
• You’ll see overlapping information and duplications of streets and postcodes and where the heavy traffic of advice is… Those are your goldmine areas.   
• Focus your marketing on those goldmine areas. (Direct mail, leafleting or whatever you want to do). 

BEST MOMENTS 

‘It’s vital to know where you can find deals and investors.’ 

‘Facebook lives work.’ 

‘You’ve just got to go and do it.’ 

‘Don’t email or phone and assume that’s doing the right job.’ 

‘This is not an estate agent. This is only letting agents.’ 

‘You know when you find something that is arithmetic compelling, you know you’ve got a good deal.’  

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 

The property market has gone through drastic changes since God knows when—from several recessions to market crashes to political changes and a lot more. 

It’s not as easy as you think, but when being cautious, you can emerge as a property winner, just like our guest in this episode of the Property Sourcing Profits, Sheryl Siegler. David, your host, and Sheryl has been enjoying the benefits—the freedom, the wealth, the comfort, etc.—of property investing since the 90s. Today, they share the hits and misses they’ve experienced throughout the years, how they have dealt with the ever-changing property market, what are the current challenges in property in 2019, what’s it about Section 24 and how they stood their ground despite the trends.  

Start tuning in to know more about their journey from property beginner to property winner. 

KEY TAKEAWAYS 

• When David and Sheryl planned to buy properties, there were a lot of worries and doubts, especially Sheryl. Sheryl has a stable job that time, so risking on property investment during recession wasn’t ideal for her. She thought it’d be very difficult to pay the mortgage. But, unfortunately, her decision to not push through was a mistake. Everything could’ve gone well. It doesn’t matter if the market is down, as long as you’re ready. 
• When they have already established their credibility, it was the lending institutions who are now knocking on their doors to offer their money. But even with this huge advantage, every decision to invest on any property is still thought thoroughly and carefully planned. 
• They are in a good position right now—they didn’t have to sell their properties when the crash occurred and the value got up higher.  One reason is they monitor the property prices. 
• The value of flats dropped during the recession and haven’t recovered yet. 

• If you’re sourcing apartments for investors, make sure that at least 50% of them are occupied by the owners. 
• Section 24 – If you book property in your own name, you can no longer subtract your mortgage interest at the end of the year from your tax built. 

• Landlords are losing money and are carrying a lot of debt. David and Sheryl suggest you increase the rent to a reasonable price and look at the excess. 

BEST MOMENTS 

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 

The spirit of this episode is ‘compliance is simple’ and compliance must be your favourite subject if you are going to source deals for your investors and keep them happy.

David updates compliance and reveals a ‘blow your socks off’ anomaly, a kink in the system currently that could help any deal packager to get started  and go faster.

It's vital to be compliant as you move forward and in this episode, David shares current advice on what you now need and don’t need to be a compliant deal packager.

KEY TAKEAWAYS

• You must  have professional indemnity insurance policy in place.
• Be a member of a  property redress scheme such as the property ombudsman (TPO).
• Hold data protection registration with the information commission.
• Be registered for anti-money laundering with the HMRC.
• Joining the TPO will give you access to documentation that will enable you to be compliant in the other required areas.

The Property Ombudsman (TPO)

• Review your registration/ membership with the TPO and revise if necessary
• Registration is no longer enough; you need to be a member but do not have to fulfil all of the compliance issues of full members.

Internal complaints procedure

• You need to have an internal complaints procedure
• If you are a member of the TPO you will have access to a downloadable internal complaints procedure.

Fact find your investor  

• The fact find is good practice and provides you with the information you need
• to search for investments to meet the client criteria.
• Send a written confirmation of the fact find to the client for an accuracy check and ensure you retain a signed copy.

Terms of business

• If you have gone through my training you will have access to my terms of business.

A contract

• It's best to have a written contract in place with an investor this will make transparent your fees and the points at which monies will be due.
• You must have a signed copy returned to you before you move forward to source properties

Rent to rent, rent to rent for SA

• If you are sourcing rent to rent or rent to rent for SA opportunities you do not have to be registered with a redress scheme or HMRC for anti-money laundering supervision.
• As soon as you have a client who wants to buy, you are subject to being a member of a redress scheme and registered with HMRC.

BEST MOMENTS

‘You need a picture of who your client is and what they are looking for’

‘There is a kink in the system, and you don’t have register for compliance if you are sourcing rent to rent or rent to rent for SA’

‘It’s good practice to become compliant as you move forward’ 

VALUABLE RESOURCES 

Property Sourcing Profits Podcast

https://www.progressiveproperty.co.uk/

https://unlimited-success.co.uk/

https://www.facebook.com/groups/progressivepropertycommunity/

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

https://www.linkedin.com/in/david-siegler-7b126316/

https://www.facebook.com/DavidSieglerInvestments/  

Turning a property into a HMO (House Of Multiple Occupation) can be a wise idea, but many don’t know how to accurately cost the project, and more importantly how to present these numbers to investors.

In this episode, David walks you through each step of a hypothetical project, allowing you get a feel for how each process works, and giving you a much better idea of the costs and practices you should be looking out for, and by the end of the episode you’ll have a guide on how to answer your investor’s most important questions.

KEY TAKEAWAYS

• Investors always want to know how much of their capital is going to be left in the project, and more importantly what the possibility is of them getting some money back out of it.
• It’s important to remember VAT when it comes to your refurbishment costs. If you are converting a house to a HMO, you are creating “new” accommodation in accordance with VAT regulation 708.
• VAT on normal purchases is 20%. If you convert a property into a HMO, the VAT rate, under regulation 708, for the builder’s supplies and materials, is just 5%. This is a significant saving!
• Make sure you have your sets of drawings from your architect. The first is an overview of the plan before and after with correct room sizes. Bedrooms should be a minimum of ten square feet plus en suite. 
• A Commercial Revaluation - Will a commercial value a property and lend you money based on the income from the rent. This is incredibly hard to judge and is never guaranteed.
• Lenders usually judge this revaluation on three numbers:
  • Yield driven valuation based on the rent roll. Lenders use the gross figure minus 20%.
  • A bricks and mortar valuation based on what the value of the house is as a standalone property.
  • The third number they come up with is somewhere between these two values. This is generally the number offered by commercial lenders.

BEST MOMENTS

‘Did your investor know that? Did you know that? You can guide your investor!’

‘Speak to your local authority. They will guide you on room sizes’

‘The best job that you can do for your investor, is to do the job with cash. Cash is king’

‘If you’re going to source HMOs, you need to know this stuff’

‘Everything after two years, the profit is profit'

VALUABLE RESOURCES

Property Sourcing Profits Podcast

https://www.progressiveproperty.co.uk/

https://unlimited-success.co.uk/

https://www.facebook.com/groups/progressivepropertycommunity/

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

https://www.linkedin.com/in/david-siegler-7b126316/

https://www.facebook.com/DavidSieglerInvestments/