Manage episode 245563180 series 2310268
In today's episode, David recaps the 4 most important things he learned after meeting new potential Property investors!
This is what David learned
- You have to understand that investors have a plan
Make sure you are prepared! I can’t tell you all the times i have sourced a deal for the investors to then explain they want you to do it all! Have a refurb team, a management agent etc all waiting in the wings for when you might just need them. Not only will it get you out of a pickle but also show your investor you’re prepared for anything.
- Investors want both; Cashflow and capital growth
Don’t, I repeat DON’T send all your deals to your investor. This creates frustration and doubts that you understand their needs. You should spend enough time with your investors to drill down the specific details they need in order to say YES and the ones that are open to change.
- New investors to Property may not understand what they're looking at
New property investors might not understand the deal you are showing them. They don’t yet have the experience to see a properties potential or how you got to the figures you are presenting. Be prepared to explain and walk them through the process. Not only will this make them feel more confident in the process but you also teaching them for future deal you send their way
- New investors want to work with Deal Packagers who can do the job
Why does your investor want what they want!? Are they after long term sustainable wealth or immediate cash flow… Make sure you know as they might not know the quickest way of getting there and you can help them potentially more with another type of deal.
Be prepared to teach. Now what do I mean by this? I mean new investors don’t know what they don’t know. It’s likely when people first enter the world of property they have an idea of the picture perfect homes they would be proud to own and show off to their family and friends…….The reality is what they are really after is financial freedom, cashflow etc and these properties rarely look (at the start) something you want to show off. So be prepared to teach and walk them through your process of how and why you are presenting a property that needs a little TLC to them. This will also save you time and time again every time you present them a deal as they will be more confident and understand the logic behind each one.
As a deal packager you are a problem solver. Yes, you! So it’s important to know exactly what problem, goal or vision you are trying to fulfill for your investor. So from the start get clear, spend some time with your investor finding out their top line goals and drilling down the reasoning behind each. This is going to set you up for success! You will know the exact deals to send your investor moving forward and the ones which might not be exactly what they are looking for but will help them reach their goals faster. So spend some time getting to know them and see just how much easier the process becomes.
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.