How to Fast Track Your Property Success…

I’ve just had a breakthrough which I know is going to help you out…

It hit me so hard that I felt compelled to stop everything I was doing and write it all down to let you know, because this is too important to miss…

I was listening to “The Chimp Paradox” by Professor Steve Peters, in particular the section on the different parts of the brain.

The human brain is a truly amazing thing, and understanding it is very important for our own self awareness.

Essentially, according to the Professor, there are 3 parts of the brain:

    • The Chimp – This is the guardian to your brain, the first thing that reacts to stimuli, it is highly emotional and prone to react
    • The Human – This is the intelligent part of your brain, the part with rational thought, language
    • The Computer – This part of your brain deals with routines, bodily functions and habits, the computer processes things about 20 times quicker than the human because they are ingrained action (such as breathing or reflexively catching a ball)

It was the distinct difference between the human and computer that really struck me.

You see, I’ve spent a lot of time recently trying to analyse why some people succeed and others don’t.

Why, when presented with exactly the same information, do people reach completely different conclusions?

I see this happen all the time…

So what is that differentiating factor? The one that changes our insight?

“You don’t know what you don’t know”

The realisation hit me… it’s all about the Computer.

A combination of training, immersion and experience in a chosen field of expertise will eventually ingrain itself in the computer. Being able to spot property deals, finding good investments, knowing who to network with, if given the proper time and training, will become as easy as breathing.

Your success can run on autopilot, you just have to pre-build the system.

Take elite tennis players, for example.

It has been proven that elite tennis players, like Roger Federer, do not necessarily have faster reaction times than the rest of us. But I doubt many people would want to return one of his serves!

So how do they do it? How do they reach the top of their game?

Well, it’s a combination of…. (you guessed it) training, immersion and experience! They have spent the time inputting the information into the computer, they no longer overthink the action, or respond impassively like a Chimp. Instead when returning a serve, they can almost instantly analyse thousands of inputs, trigger movements, environmental factors, etc, and put themselves in the right place to powerfully return.

What do you need to do?

I’m not expecting you to become the new Roger Federer, but there’s nothing to stop you becoming a pro in your industry. All you need to do is make that successful combination, of training, immersion and experience, into actions.

  • Find a training program that works for you.
  • Immerse yourself in the industry completely.
  • Seek out as many types of experience as possible.

It’s up to you now… Do you want to be a Chimp or a Super Computer??

How find the best property deals before your competition even gets a sniff…(!)

This is part two of a 3 part blog series about property sourcing:

Part 1 – Why lack of deal flow is NEVER your real problem…
Part 2 – (You are here) – How find the best property deals before your competition even gets a sniff
Part 3 – STOP sourcing property through Estate Agents.

In part 1 of this series (and if you’ve haven’t read it yet I strongly suggest you do by clicking here) I talked about the importance of pipelining properties to find the best deals.

This technique is, however, just one part of the larger ‘sourcing machine’ we have created and implement across our portfolio of property companies.

Now – here is my view on property sourcing.

Everyone in property, and I mean everyone, should be a property sourcer…

Let me explain…

Although property sourcing is a strategy in itself, WHATEVER your main strategy is – be it BTLs, HMOs, R2R, Commercial Conversion, Flips, Letting Agent or some other TLA – every one NEEDs to source property!

If you’re wondering how…

The key is to build a machine that finds you the very best deals in whatever market you are shopping

The essence of an effective system is a framework which you can use to achieve a desired result – and just to make life easier, we have sat down and designed a sourcing system that anyone can use to find what they want!

All you need to do is bound the criteria of what a deal is (remember tip number 1 in the first post?), turn on your system and the deals will fall out of the bottom.

This system is so powerful, because when it’s up and running you’ll be delivered deals 24/7 – but, crucially, depending on what criteria you enter into it, you will likely find a whole bunch of surplus deals which you can package up and monetise.

To make sourcing even easier for you, download our ‘Top 10 Apps’ checklist, this will allow you to automate 95% of your property business! You can download it for free here

Here’s our “Sourcing Machine” Blueprint:

sourcing machine

 

The machine is just one of 8 advanced systems that John and myself use in our property businesses right now and we talk through each of these on our flagship Advanced Systems Masterclass programme.

But it all starts with your database.

As this first stage in the sourcing machine is so crucial, (and how we implement it is one of the most commonly asked questions we get), I wanted to let you inside and show you how to setup your own database and start building your machine in this free training video.

It really is that simple!

For some more easy ways to massively increase your sourcing potential, check out our “Top 10 Systemising Apps” which you can download for free here!

And in our Advanced Systems Masterclass digital training you can see how to setup the whole system and have others drive the best deals straight to your inbox 24/7!

As well as 5 “Plug and Play” advanced sourcing funnels, which we use in our business right now, you will get 7 other strategic systems which we’ve used to build multiple 6 and 7 figure property businesses for very little daily input.

(Need systems training?  Learn more about our Advanced Systems Masterclass and take your property business to the next level by clicking here.)

Why lack of deal flow is NEVER your real problem in property….

This is part one of a 3 part blog series about property sourcing:

Part 1 – (You are here) – Why lack of deal flow is NEVER your real problem…
Part 2 – How find the best property deals before your competition even gets a sniff
Part 3 – STOP sourcing property through Estate Agents.

Economies shift, markets evolve and so, therefore, must our property strategies.

Without a doubt, one of the biggest frustrations I have seen manifest into the industry in the last 18 months has been a lack of deal flow.

This is hardly surprising.

The UK property market has seen a SIGNIFICANT recovery over the last couple of years and in a strong market there will more investors (many of whom will be in-experienced and are happy to over pay) hunting the ever dwindling supply of motivated sales.

It’s all about the maths.

But here’s the reality…

There will ALWAYS be motivated sellers and deals out there!

Of course, there are many factors that go into defining what is a deal to you – but the fundamentals have always stayed the same:

Buy well, add value, refinance and ensure it still cash-flows…

Cast your minds back to the bottom of the crash, around 2011-12.

This is around the time I started my property business if I’m truly honest, purchasing below market property was, well, EASY!

On pretty much any given day of the week you could pop down to “estate agents row” and buy a single let in my goldmine area for around the £40k mark, do a quick £5k refurb and get it revalued at £60k pulling all the cash out.

It was easy because NO ONE was buying property and the market was full of repos.

The agents were almost falling over themselves to get our business and we sourced a fair few properties both for myself and my clients.

Now – early on in my business I implemented a system called PIPELINING…

It was all about identifying properties that were potential deals and then to keep following up on them until they either sold to someone else or we got a deal agreed on them.

To be honest, we didn’t really need the system at the time. As I said – buying BMV from agents in 2011 was not particularly challenging.

Click here to download our free training video on how we setup our own database and pipeline property.

But then the rules changed.

The property market recovered and suddenly the area was flooded with investors. I remember it well and it literally seemed to happen over night!

It becomes more difficult to buy property BMV through an agent when they have 10 investors willing to pay OMV (Over Market Value) for every “deal” that comes onto the market…

But we kept on buying great deals when others were (and still are) struggling to find them.

How?

There are a couple of clues if we look back at the properties we have bought over the last 2 years…

Number 1 – The last time I purchased a property from an Estate Agent was Feb 2014…

Number 2 – All of the properties have been purchased after being “in the pipeline” for a significant time!

Here’s some case-studies to illustrate the point:



Mixed Used Commercial and Residential

This project was a distressed sale purchased at auction and consisted of three office units and 7 flats/bedsits in an LHA area.

The building sat empty for 5 years on the main street in Ellesmere Port, one of our goldmine areas. It was in our pipeline for some time as we were trying to contact the owners.

The owners were eventually repossessed and the building was put into a Liverpool auction. We actually got the heads up on the auction from our local council.

As we knew the property well we were able to outbid the competition who, I still believe to this day, did not realise it’s true value. (Which, of course, was good for us… 😉 )

Project Figures:

  • Purchase Date - Jan 2014
  • Purchase Price - £124k
  • Refurb - £146k
  • Council Grants - £70k
  • Total money in the deal - £200k
  • Revaluation for finance - £415k
  • Equity created - £215k
  • Money re-cycled - 100%
  • Current gross rent - £3400 PCM
  • Free office for our lettings agency on the high street



Mixed Use, Cafe and 1 Bed Flat

This property is actually located over the road from the property above and again, had sat empty for over 2 years.

The property originally came onto the market in 2013 for £180,000 with a comparable selling on the same road in 2006 for £160,000.

It reduced in price over an 18 month period to £100k before being removed from the market. We tracked it in our pipeline throughout this process.

The owners of this property were a Polish couple who had opened a cafe on the high street but subsequently closed it and moved back to Poland. A combination of their personal circumstances (which again we knew through the local council who were in touch with them) and the pound to euro exchange rate meant the time was eventually right for the deal:

Project Figures:

  • Purchase Date - Dec 2015
  • Purchase Price - £50k
  • Refurb - £6k
  • Council Grants - £3k
  • Total money in the deal - £53k
  • Revaluation for finance - Estimated at £90k
  • Equity created - £37k
  • Money re-cycled - estimated at 100%
  • Current gross rent - £825 PCM



Grade 2 Listed Commercial Property

I originally saw this property in auction early 2014 and it was promptly entered into our pipeline, but we weren’t in a position to purchase at the time.

After selling at auction the property remained un-modernised although the owners applied for and received planning to turn it into 2 x 4 bedroom townhouses.

The property was re-listed at auction and after some inquiries I was introduced to the owner.

After several meetings we agreed to JV on the building and are now re-submitting planning for 6 flats, but with a solid exit in place if we have to stick with the existing planning.

The 6 apartments would be run as a block of serviced apartments, and if the planning is rejected then plan B will be to operate as 2 x 5 bed luxury HMOs.

This is a classic example of never letting a property out of your pipeline until the whole process is complete…!

Project Figures:

  • Purchase Date - JV to start Jan 2016
  • Purchase Price - £150k
  • Refurb - £350k
  • Total money in the deal - £500k
  • Estimated Valuation (6 Flats) - £900k
  • Estimated Valuation (2 x Townhouses) - £750k

As always, property is a long game. In fact, the longer a deal has been “percolating” for in your funnel – the better it will be 🙂

So, here are my 4 top tips that will help you in sourcing better property deals:

  • Set your criteria for what constitutes a ‘deal’. Everyone will be looking for different things depending on circumstance and strategy - but if you don’t know what a deal looks how will you ever find it?
  • Create a pipelining system and put all of your potential deals into it. If you need help with setting up a pipelining system, Click here to download our free training video on how we setup our own database and pipeline property.
  • Identify what the vendors circumstances are. On occasion this may require ninja like research skills but for the most part it’s about developing rapport. A cup of coffee and CARING is a good place to start of you’re stuck… DO NOT skip this step - it is the differentiator between the super successful and everyone else in this industry.
  • Follow up on all your prospective deals on an 8 week basis until the time is right for your killer offer to be accepted.

Great hunting and let me know how you get on with your pipelines…