A Beginners' Guide to Investing in Property | Full Course from Rob Jones
Want to invest in property but aren't quite sure where to start? Today, we are publishing training content that was previously only available to subscribers where we look at why property investment is the perfect pension plan, the best possible source of passive income and the perfect job replacement strategy. But, more importantly, we look, in detail, at how you can get started on your journey to autonomy and success in property.
*Please note: this training video was first created in 2016 and some offers mentioned, are no longer available. Don't hesitate to contact us if you want any more information.
- Get two key property strategies you can use to retire faster & wealthier with property – inc… when to use them, where the money is and actionable real life examples.
- Find out why property investment is the perfect pension plan, the best possible source of passive income and the perfect job replacement strategy..!
- Discover how to find perfect cash-flowing property deals on your doorstep.
- Revealed: The next best steps to take to achieve your retirement income within 12 months or less.
Hello and thank you for joining us with your online property training. It's great to have you on board. I'm Rob from Property Investments UK, and I just want to give you a bit of an insight here in terms of what's going to be coming up in the training for you in a second.
Firstly, we'll look at 2 key property strategies. These are property strategies that you can use to retire from your kind of 9-to-5 day job if it were, or a career or an industry, if you're not happy with it and want to look at something else, how you can achieve that with property. The strategies that we look at is one which is a pension plan strategy and, two, which is a job replacement strategy. We'll also go and show you some case studies and life examples of deals that we've done and clients of ours have done that showcase how you can achieve the same using these strategies.
Next, we'll also look at 4 detailed tips and techniques on how you can go and find the local property deals on your doorstep, so, wherever you are in the UK, how you can use free the techniques, find property deals online with an estate agent. The best deal is really how you can look and spot which are going to be motivating sellers and which are going to be the best properties to look at.
Next up, we'll then give you some free bonus downloads and also follow it up with a bit of a plan on how you can achieve those results over a 12-month timeframe, so, more or less combined, it will put you in a position to achieve those property results that you're looking for.
Now, you can cut out all of the mistakes that I made when I first got started in property by joining this training. It gives you an idea of how to find the properties, what strategies to consider and also, as I said, some free bonus downloads as well.
I'm so excited to show you the training. I'll jump from behind the camera now and jump straight into the training and show you what we've got to deliver.
Sourcing Properties / Retiring the 9-5
Hello and welcome to your UK online property training. I'm Rob from Property Investments UK. I just want to thank everybody today for joining in on the training. I really do appreciate it.
Now, in today's training, we're going to be talking about how you can achieve retirement income with property within a 12-month timeframe and, at the end, I'll be sharing with you as well some special bonuses, including the chance for some free one-on-one mentorship with myself to help you directly with you property portfolio goals.
Just as a bit of insight in terms of what's coming up, as an example of what this kind of training means really, retirement income means essentially very different things to different people because, for some it might be case of simply getting their pension in order or something that gives them an income on a monthly basis and allows them to have an asset that's also got the potential to appreciate over time, whereas, for others, it could be a case of simply earning enough money to quit that day job.
The retirement level income could be retiring from the work or the 9-to-5 job or situation you're in, so, simply by having that flexibility, if you want to continue to work, but have your asset base and a cash flow coming in from elsewhere or, if you want to maybe create a new career within property, we'll show you the tips and techniques to do that today.
What we're going to be looking at in your training is essentially 2 key property strategies. The first is a pension plan property strategy and the second is a job replacement property strategy.
Next up, we're going to be looking at how to find the perfect property deals in your local area. Wherever you're based, whether it's London or Liverpool, Manchester or Middlesbrough, we'll show you exactly how to find property deals, that cash flow, and that you can also buy at an immediate discount.
In addition to that, we're going to be looking at you can do next, so what the next kind of steps, after this training, what the 12-month kind of timeframe and the plan of action to achieve this. Not only that but for simply joining me on this training today, as a gift, at the end, I'll give you a couple of great free bonuses. The first is going to be the exact estate agent negotiation and due diligence cheat sheet that I personally use on all our property deal. Whenever we're analysing the deals to buy either for a sale or for a client, this is the sheet that we use for that.
We'll also give you the 7 Golden Rules checklist. This is what we look to analyse any property deal to make sure it's even worth considering purchasing. Then the third is the chance for a free one-on-one mentorship directly with me to help you with your property portfolio goals. I'll give you access to all of those at the end of this training.
With these strategies that we're going to cover and the tactics that I'll show you and also the bonuses that we'll give you, everything combined, at the end of the training, you should be able to go from not knowing anything about properties or buy-to-lets, or maybe even if you've heard of other strategies like flips or HMOs, I'll show you what you need to give you an immediate advantage over your local competition to get to this retirement targets, as I said, with 12 months so you can leave that 9-to-5 day job if that's indeed what you wished to do.
Next up, we're going to be, just a bit of admin really, so, before we get started, I just want to read through this disclaimer. Now, I'm not a financial adviser. This is not intended as a financial or legal advice. The information provided is solely for general education purposes and based on my own personal experiences in property over the last 10 years.
As you all know, investments can rise as well as fall in value. Property is no different. It can be a risky method of investment. Any individual who chooses to act upon the information contained in this training should always take an independent financial specialist's advice before making any decision to invest in property.
Like any industry, the only thing that is permanent is going to be change itself. In the past year, there have been some legislation and tax changes in the buy-to-let market. We couldn't possibly cover them fully in this training, unfortunately, but, suffice it to say, based on everything we're seeing in the market, the current demand that we're experiencing, the market we believe is going to be stronger than ever and there's going to be more opportunities that will arise simply because of these changes. We see that a lot of the changes coming in are going to be a good thing for the market as a whole.
Before we go straight into the training, we're going to be covering a number of detailed property tactics in this training today, so it's good to clear desk of any distractions so you can focus on it. To get the most out from today's training, what I'd recommend you do is close down any emails you maybe got opened. Turn off Facebook if you currently have that one on the background. Put your phone on silent if you can do it. This gives you a great chance to take in everything that we're going to be discussing, looking at and kind of the hands-on training that we're going to be showing you.
Also, at any point in the training, either as we're going through it and maybe after the training, if you have any questions at all, please feel free to email me. Simply message me at firstname.lastname@example.org. I'm more than happy to help.
If you're ready, maybe go grab a drink and get a pen and a paper or a tablet if you're a bit more technical, and start making some notes. We can jump straight into the training.
As a bit of a recap really who this training is going to be for, it's really for anybody that wants to retire young, so wants to get that extra kind of income and wants to generate cash flow. It's also anybody that wants to quit their job. As we said, the plan here is to look at a retirement plan within a 12-month timeframe, whether that's retiring from the current 9-to-5 job you're in or simply if it's maybe you're looking at a longer-term plan than that. You maybe love your career or you industry at the moment, but you're thinking in the next 5-10 years, you want to retire early. Again, this training will show you how you can do that with property.
Finally, because of the things that we discuss in the training, it is and it does work for a novice, beginners or experienced investors alike. It's not specific to one part of the market. Whether you're brand new to property or you've got some experience already, these techniques you're going to be able to use, as I said, in your local area.
How I got Started in Property
Now, to help you get a bit of context as well in terms of may background and also kind of where this information is coming from, I got started in property about 10 years back. As I said, my name is Robert Jones. I run Property Investments UK. I'm 33 years old, and I currently live in South Manchester. Manchester in the Northwest, typically, is the area that we focus on for our own property investments.
Now, from a work point of view, because of property, because of the extra cash flow it gives us and because of the passive income it gives us as well by having the asset base there, we manage to create a fantastic work-life balance. As a family, I'm in a very lucky position where I only have to really work 2 days a week on checking my current my current portfolio and, potentially, working on any new deals that we consider. The rest of the time is mine. I got to spend it with my family. I've got two children, wife, dog. We like to go cycling. We get that chance to do those things that we want to do as a family or just have the free time as an individual to do whatever I wish. I don't have to be in that kind of 9-to-5 work ethic if it were.
This is only because of property. I wouldn't have been out to do this with any other kind of asset that I've looked already. It hasn't obviously always been like this. When I first started out trying to get this kind of work-life balance, it was very difficult. Like many people and maybe like yourself, trying to get out of that Monday-Friday kind of routine and dreading Sunday evening, it was very difficult at the start.
The jobs and roles I did before I got started in property, I could never understand why I was doing it. I wasn't necessarily in love with the roles. Of course, you need the income, you need the wages coming in, but, apart from that, what is the point of it, if it were? You've got to be in a position where you're loving the job you're doing or you're loving the career you're in and you're loving what you're spending your time on essentially. Whether that's working on a Monday or a Sunday evening, you want to do it because you enjoy doing it, not because you're forced into that role.
In addition to that, I never really had, obviously, I had wages coming in from the job that I was doing, but I never really had a massive kind of income, if it was, and then that I could kind of rely on or retire on. It was never really about that. I never really wanted to just have the millionaire's salary and work 100 hours a week to achieve that. I wanted something different. I wanted to do something that I enjoyed and that I really loved doing. It was more about the lifestyle and the choice element. If I didn't want to go to work one day, I wouldn't because I had that choice to be able to do that, I had that freedom of flexibility.
Alternatively, if I wanted to work 20 hours on a new project or a new idea on a particular day, then I was able to do that because I was able to dedicate the time and the energy to that. Having that freedom, having that control, which was really what I was striving for. It wasn't about having a boss. I didn't want to kind of just live through the week. That wasn't really what I was aiming for.
Now, I can spare you the complete back story, and, obviously, you don't have to look at that, but to help you ... I suppose you can relate from the property side of things. Back in 2005, I first looked at property. That's when I first got started. Now, this was because, at that time, my girlfriend's father was a builder and he owned a number of rental properties. He was doing really well for me. He worked as he wanted and he seemed to love his job.
My parents, actually, as well from my side, also, I grew up working in bed-and-breakfast and some hotels because that's what my parents' industry was. They also a buy-to-let property on the side that seemed to work really well. That combination of property and income seemed perfect.
In 2005, after scraping a deposit together, we managed to purchase our first buy-to-let property with my girlfriend.
This was this particular property here. It was a 3-bedroom terrace in Warrington in the Northwest. Now, at that time, I was still 23 years old. I was certainly nothing special. From it. I had an unstable work hours at that point in time as well because the job I was doing was a personal trainer, and so it was quite erratic and the times I would work. I also had a £30,000 debt that I'd racked up from a previous business, so I had a severe lack of starting capital to get started.
On this particular property, to combine with all of that, we also made a lot of mistakes, like very easy mistakes or very basic mistakes when you're first getting started in property. If you got no training or education or somebody who can show you a little bit about what to look for, they're very easy to make. On this first property, as an example, we overpaid by at least £10,000. Also, in addition to that, the rental that it generated wasn't really enough to make the deal work as a buy-to-let.
We hadn't really researched the market properly. We knew it would rent. We knew what sort of rental income it might bring in, but we didn't really compare that to our costs, the cost of the mortgage, the cost of the outgoings and certainly, didn't look at the comparisons on what prices we were selling it for. As I said, we overpaid and we also didn't have a good rental income coming in from a figures basis. It's not a great combination to be in on your first deal.
Then, if we fast-forward a year to 2006, I've gone from a massive learning curve with this particular or first property, but I loved it, I loved the industry, I loved the idea of it and I could see its potential. I knew, if I was going to do property properly that I needed to commit to learning and understanding it more, certainly improve my level of experience and education and, also, contacts.
In December 2006, I applied for a job as a trainee negotiator for a local estate agent and so I learned really from the ground up how property worked. Apart from the 9-to-5 element of it, not particularly a kind of career job, I really liked it because the estate agents that I worked for turned out to be a fantastic choice. They provided great on-the-job and practical training so we learned how to value houses, how to negotiate sales and deal with vendors and also buyers. We also learned how to spot minor defects in a property even before we bring it on as a listing, also deal with solicitors as well. It was a fantastic ground for what I needed at that time to get started in property.
Fast-forward again a few years from that, I've now got a fully functioning property business where we do a multitude of things, not just property training, property sourcing, but we also have our own property portfolio. I own 12 properties of my own. We also do a number of joint venture projects with clients. We do also regular deals that we source for clients and sell as well. This is all run on a business schedule around 2 days a week.
As I said, I'm nothing kind of special. Certainly, when I started out, I didn't have a lot of ... as I said, we had a lot of debt to get started. We had no background or experience in property. Also, it's around the time of 2006, 2007 when I was working with this estate agency, that it was at the peak of the boom and just about to head into the bust, so a lot of things were against me and, obviously, the industry at that time. It probably wasn't a great time looking to get started in property, but that's the beauty of property, it can work for many people from many backgrounds, whether you're starting with a £1,000 in the bank and a little bit of debt or whether you're starting with a £100,000 in the bank and no debt to everywhere and kind of in between.
My aim today is, when we're looking at these different strategies and we're looking at the different techniques on how to find property deals in your area is to show you how you can get strategy in property whatever your starting point is, teach you how to find these deals, what strategy they might work for so you can achieve those aims and goals. As I said, at the end, as well we'll look at how we can do some free property mentorship for you on a one-on-one basis as well.
Next up, we're going to look at the property strategies that will allow you to achieve that retirement income so you can quit that 9-to-5 job and look at income and assets outside of your maybe current career or industry. These are going to be Vanilla buy-to-Lets and also buy-refurbish-refinance or flips. It's a very similar strategy. We'll look at the elements that combine to make up this particular plan.
The reason why we combine them is that this first one is going to be looking at more of a long-term steady pension plan that's going to give you cash flow for many years. The second is going to provide you with quicker growth, also the potential to replace your salary, as we said, within that 12-month timeframe because you'll earn large sums of money when you do the flips where you'll be able to pull out money when you refinance a property. That's what we're looking out really. It's the pension plan strategy and the job replacement strategy.
There's going to be some key assets that are going to help you with these strategies, so the money to invest from the outset to maybe purchase a property straight away or to have some initial deposits, which is going to be good, but it's not necessary, a clean credit rating as well, a good regular income to allow you to achieve that buy-to-let mortgage or mortgage if it's maybe for, as we said, a flip or an HMO. You're going to need a particular type of mortgages for that. A good, clean credit rating, a good regular income is going to help you with that. Again, it's not a necessity, so, if you're not in that situation, don't worry. There's plenty of other strategies that we can show you. I'll give you a bit of an insight in terms of how you can look at those later on in this training.
Thirdly, property contacts, so, if you have already contacts with maybe a property sourcer, also a maintenance team, letting agents, solicitors, mortgage broker, whatever it might be, that will help you get up and be running a little bit quicker. As we said, none of these are necessities. There are options if you don't have them. It's just that they will give you a bit of a head start if you're in a position where you have one or two or three of these elements that we're looking at.
Now, in a second, we're going to be looking at some live examples of both of these strategies. I'll show you some deals that we've done and some deals that some of our clients have done recently, but, first, I just want to give you a bit of an insight, an introduction in terms of how each of these particular deals work.
1) Vanilla Buy-to-Let
The first one is going to be Vanilla buy-to-lets. As we said, this is the pension plan property strategy. This is typically the strategy that you would look at if you were to maybe speak to more of the mainstream type of property investors. Certainly, pick up any property book from Amazon or a bookstore, or if you could just speak to an estate agent and letting agent. This is the strategy that they would know, they recommend and possibly talk about. This strategy doesn't certainly require any creative thinking to get started. Once you've learned how to find, negotiate and manage the property successfully, it's very easy to systemize that process. We have a number of buy-to-lets in our portfolio and would continue to do so over the years as well.
Now, on this strategy, where the money is it's going to be kind of twofold really. The first is going to be on the rental income. There's going to be different definitions that people look at for rental income, but to keep it simple across the board, this is the definition that we use, which is the yearly rental income divided by the total cost of the investment or the purchase price and the refurbishment costs times by a hundred.
Here is an example for you. £6,000 rental income divided by, let's say, £70,000 purchase, £5,000 refurbishment times by a hundred, that's going to give you an 8% rental yield. Now, depending on where you are in the country, these figures are going to certainly look different. If you're based in London or Dorset, they're going to look different than if you're based in Manchester or Sheffield. The calculation is going to be the same and the target rental yield that we would look for and suggest that you look for, again, will be the same on that basis.
Next up, we're going to be looking at a second income stream which would be from equity or potential equity in the deal. Actually, just go back to this section here, this 8% rental yield, this is the target yield that we typically aim for any of our buy-to-lets and the majority of our clients tend to aim for. As we said, if you're based in London, it's going to be very hard to achieve those gross rental figures, but many other areas in the UK, you can still achieve those. That just allows you to have enough income to cover your costs, maybe your mortgage, maintenance fees, all of those elements that come into owning and running a buy-to-let and allow you to make a profit as well.
Next up, we're going to be looking at equity. This can be described as the difference between the value of the property minus how much or any finance you might have on it. An equity is typically going to be created in 3 ways. For example, if you had a £100,000 property with a £60,000 mortgage, you've got £40,000 worth of equity in it based on this criteria here. The 3 ways that you can actually create or add value and build equity into a deal is going to be ... The first one is buying at a discount. Second is adding value with refurbishments, and the third is going to be as you get property growth naturally within the area.
That's got the very best income and return on your investment with buy-to-lets. Ideally, you want a combination of both, so you want to get some rental income and some equity in the deal. Now, from experience, it's best to focus on properties that give you, as we said, the 8% target gross rental yield, but also a minimum rental income amount. You don't want to be going too low on the property price and get a great yield, but then the income is not coming in that's going to be too high ... or not high enough. Sorry. We'd usually look for an income of around £200 per month cash flow after all costs on a typical buy-to-let deal. One of the other reasons to buy that deal if it doesn't achieve those figures, but that's a general rule of thumb.
Now, for the equity, in an ideal world, you want to be negotiating some discount on the initial purchase price. Now, it depends on the market. We're currently viewing property in a very buoyant market with a very particular type of strategy in mind and we have to pay for the market value or even, sometimes, over the market value currently to make that deal work, but then we can add value to it in a number of other ways. As a very general guide or rule of thumb again, in an average market, in a market that's stable and in any other area of the UK, you want to be buying it at a discount. The target discounts that we typically look for is around 15% or above. If we can get it at a 15% to 25% discount, it's a sweet spot.
The next one is going to be adding value with refurbishments. This can be small scale refurbishments. You don't have to be doing major structural works or any kind of real problem properties if it were. You can just do very nice internal decorations and refurbishment and some external to make the property ... or add value to that property.
The third way of creating equity is going to be with capital growth, as we said. This is going to be really out of your hand at this stage. It does depend on the market, but if you do your due diligence right, if you picked the correct areas and you understand the type of properties to buy in those areas, you can certainly make sure that your investment has the best potential chance to get a suitable capital growth over a period of time as opposed to just buying in any area because the deals might look good. You want to do some due diligence on it if the area is going to be right.
2) Property Flips: The Buy-Refurbish-Refinance Strategy
Okay, so next up is going to be the job replacement strategy. This is where we look at buy-refurbish and refinance and the flips because they're very similar in terms of the method and they're similar in terms of the income or the ability the strategy could give you and deliver. The principle here essentially is, if you're doing a buy-refurbish-refinance, is it allows you to recycle your initial deposit so that you can go on and buy multiple properties. This allows you to use leverage to its full capacity and ability.
Now, you can also even use this alongside other property strategies. You would purchase the property in much the same way as the traditional purchase. Also, it's the same as the Vanilla buy-to-let strategy, as we said, to give you a combined approach to your investment so you could maybe do some buy-refurbish-refinance and you could do some flips or you can bring in some buy-to-lets into the mix as well where you purchase them as ready-to-go deals. Essentially, it depends on the structure and the setup that you're looking for and also what works best for yourself at that point in time.
Now, the reason why this job replacement strategy works over and above, let's say, a straightforward buy-to-let strategy is because, with this, it relies on your forcing the appreciation of the property through a refurbishment to add that extra value, and it's with these added value that you an then look to remortgage the property. What you do is you'd look at remortgaging based upon the new valuation so you're able to pull out your original deposit and refurbishment costs, and this then allows you to move on to the next property, rolling and recycling your initial deposit.
This is great if you want to grow a property portfolio and reuse that one deposit part or initial deposit part. Done right, it give you the chance to potentially buy multiple properties over a period of time without that one deposit part. However, the key to this is adding significant or decent value so that you can show to a mortgage lender or a surveyor that you have genuine added value to the property and it is now currently worth the increased valuation.
Secondly to that, if you wanted to just simply cash out and give you a lump sum payment that may be able to replace that income that you would have gotten that year for a career or a job, if it were, then you can simply sell the property after their refurbishment instead of refinancing, and you can earn the average yearly salary for many people just by doing kind of a one deal when you sell that property after the refurbishment. We'll show you some examples of some of these strategies in today's training as well.
Now, whichever way you choose, either way, the key to this strategy, as we said, is going to be able to kind of show that you've added value. Whether it's a mortgage company, a surveyor or a first-time buyer, if you're flipping the property, you want to show them that you've genuinely added value to that property and it's worth, as we said, the new price, that data is very accessible so also the surveyors are going to know what you purchased it for originally. If you maybe bought it in January for 80,000 and now you want to remortgage it in August for 125,000, this would be a very good reason and hopefully, they can see why that you've kind of increased the value of that property to the new figure.
Now, the way in which we do this and recommend to do as well is to create a schedule of work so you can show the surveyor what you've done, also a before-and-after pictures and a before-and-after comparison in terms of valuation so you can give all the data and information to the surveyor or, if you're selling, to the incoming buyer. This allows them to see really the full information as to that new valuation and to know it's worth that increased cost.
Now, where the money is on these of deals, as with any standard buy-to-lets, if you're looking at keeping the deal and you're looking at refinancing, you're going to still make an income based on the rental income from that property. You can also increase the level of return on investment to an also almost infinite return by using leverage. The reason why this works is that you're using essentially 1 investment part. Buy the first property. Add value to it. Remortgage. Pull out all your initial funds, and then use it to go on to buy your next property.
With this particular strategy though, you need to be aware that the risk-reward element is also amplified because you're going to have more properties, more mortgages, but with greater reward is also potentially delivered on that because you have increased rental income and the potential for increased growth on those as well. It's a balance and actually depends on your individual preferences and risk profile when it comes to property or, as we said, if you look at simply the flip strategy, you're not going to make money on the rental income, but you'll make more money when it comes to actually selling that property at that point in time.
You'll be able to pull out more income from that sale, and that's because, very often, you can get a better valuation when you're selling it to a homeowner or a first-time buyer than you might get if you were looking to just simply refinance it or if the lender is a bit risk-averse based on the works that you've done.
When we look at flipping properties, we're typically targeting a 20% net return on those deals. We're looking at, on most properties for our area, around 20,000 to 30,000. However, if you live in the more affluent or a more expensive area, the prices and the figures are going to be different. If you still target this, and, obviously, you can ... This percentage, sorry you're still going to be achieving a much significant returns than this, depending upon that value and the property price in your local town.
Okay, next up, we're going to look at some real-life examples. These are deals that we've done ourselves recently and some of our clients have done recently using the exact techniques and methods I'm going to show in this training after these examples on how you can go and find these particular property deals on your doorstep.
When I say "clients," we run a VIP training course with Property Investments UK. The clients join and, within that, we have a number of topics and training modules that show people how to get started in property, different strategies, techniques and methods like we're going to be showing you today and discuss today on how to find property deals in your area and a lot more as well. I can show you some of that near the end of the training if you wish to. Right now, we're just going to be looking at some of the real-life examples on how you can mirror and do these similar deals in your local area.
Case Study 1 - A Job Replacement Strategy
This is the first one. This is a property that we did in an area of Warrington with a joint-venture partner. It was really a job replacement type strategy. Now, when we first looked at this particular deal, we weren't sure if we were going to do it through a first-time buyer standard and sell it straight on to the open market or if we were going to maybe refurb it, tenant it and then sell it to an investor buyer. That should give us sales and, I suppose, the potential for both options. Because the market was relatively buoyant when it comes sales, we thought we could get a higher price for a first-time buyer. We thought, okay, we'll do a full refurbishment in that sort of level of standard. It took us 4 months from the original purchase of the property to refurb it and then to resale. That resale we decide for an investor buyer but after being completed.
This is the internal property after the work was done. It looks a lot different than what it was initially, but, hopefully, it gives you an idea of what the property started to look like and was at the property project. We purchased this particular property for £67,000. We sold it 4 months later for £92,000. However, the actual market value of this particular property was about £100,000.
I mentioned just a second ago, we looked at the first-time buyer and selling it to an investor. We got an estate agent actually around to value this just before we sold it, and they valued it £105,000 ... or, sorry, £205,000. Because of the market, I was confident we could have achieved that. However, what we looked at instead we're selling this to an investor for a lower price for a quicker sale. We could have chosen to keep the property on the market for a little bit longer and maybe, instead of 4 months, sell it within 6 months, but we had other deals that we were considering at that time, and I'll show you some of these other deals in a second after this example, that made sense to sell this property slightly cheaper, pull the money out quicker and reinvest it in the next deal. As you can see, it's a very quick time for a flip. Even then, it was 4 months compared to maybe 6 months, but 4 months is how long the deal took.
We made a total profit on this one of £8,787. If we've gone the other route and sold it, let's say, at the 100,000 kind of price point and sold it to a first-time buyer, our potential profit would have been a lot higher. Both of these profits are good, but, £8,000, you're not going to really be retiring on anytime soon. £16,000 is a very good income as a replacement strategy. For a job replacement strategy, you'd want to be doubling up on that to give you that kind of income that, let's say, most 9-to-5 or career prospect people are if they're looking at £25, 30 or higher as an income.
The reason why I wanted to show you this example partly is that of the timeframe. We did this in 4 months, so we could potentially have done, let's say around 3 a year. You could have easily sold this within 6 months to a first-time buyer, so we could have done potentially 2 a year. It shows you that it is achievable if you're doing these flip figures, but also that things do kind of change and it won't necessarily always pan out how you start off in terms of a figures point of view.
We, as I said, took not a hit, but we sold it for £92,000 instead of the higher figure simply to get the property deal done quickly to allow us to recycle our money into another deal. I'll go into this other deal in a second. Why that's important is because I want to show you that we are showing you real-life examples. I'm not playing around the figures here. These are property deals that we've done and some of our clients have done. You can see the real estate figures true values instead of saying, "You can make £20,000 on every single property that you do," if it were, and, "You can do a 100 a year." I want to be realistic on those kinds of figures for you and show you exactly what is achievable.
Case Study 2 - A Pension Plan Strategy
The next one is a deal in Wigan that actually one of our clients did. We have, as I said, a VIP training course. Chris is on the training course. This is a particular property deal that he did, which was with a pension plan strategy in mind. Now, this was an HMO rental.
Now, HMO stands for houses in multiple occupation. Essentially, the difference between a straightforward buy-to-let and an HMO is a buy-to-let you would rent out as a full property maybe to a couple or an individual or a family, whereas, an HMO you would rent out individual rooms. You might have 4 or 5 tenants sharing 8 particular building, have their own bedroom or share communal facilities. Generally, the income on these types of deals is slightly higher from a rental return basis.
Now, the timing for Chris on this deal, he completed the purchase, the refurbishment and got it fully tenanted only in about a 1-and-a-half-month kind of timeframe.
These are some example properties. I'm not sure if you can see it or if it's a bit too small on your screen, but, as an idea, these are our sale prices in the area. We've got here a 3-bedroom, £75,000, £58, £82, £72 and a half, £115 and £82 and a half. This is our sale prices within the last year within a quarter of a mile radius, so quite varied, but, as you can see, they're around the £75, £58, £82, £70, kind of £80 upwards mark.
Now, these are the figures that Chris purchased the property at. He purchased it for £75,000. It's not massively discounted when we're looking at some of the figures here. These are a bit higher, £115, £82 and a half, £82. There's maybe some more value in it, but it's not certainly a 20%, 30% discount. It doesn't need to be, and I'll show you why now.
The cost of refurbishments and the purchase probably goes up to about just in the £90,000. This particular property, Chris would or has rented out as an HMO to a social housing client. Now, this is where a social housing provider has leased a property from him for a period of 5 years and he earns a net income, so there's no further deduction for him, unlike many social ... sorry, unlike many HMOs where you might have to pay costs like utilities, gas, electric, council tax, maintenance, management fees for the letting agents, all those costs.
On this particular lease that Chris negotiated on this deal, he secured a social housing tenancy that so he's gotten Net Returns ... he doesn't have any further deductions. Alternatively, with this property and location, he could have rented it out as an HMO, a professional kind of tenant level for this rent on a gross basis. When he broke down the figures, his net return is better to do it with the social housing process, and that's why he's gone that road.
Now, as you can see, the investment is just in the £90,000 and his income is £10,400 per annum. The rental income alone makes this a fantastic pension plan strategy. Now, we'll also get growth over a period of time, but it gives him a fantastic income to sit back and have that kind of pension plan taken over in the background. You'd only need a couple of these for things to start looking very good from an income point of view.
Case Study 3 - Wigan
Next up, as a final kind of deal example, we're looking at one we did in Wigan.
Again, this is a recent deal. This is one of the deals. Actually, we pulled out the money early on the Warrington property allowed us to do this particular type of strategy and deal as well. Now, this is a job replacement strategy. The plan here was always to sell the property. It took us 2 months from the purchase date to resale of the property. That's completing on the property, so everything is fully done and dusted.
To show you an idea on the figures, these are the cheapest 3-beds in this location. You can see £75,000, £75, £78.
These particular properties do need some work, so they're not ready-to-go rentals. They're a bit tired and dated internally, but it just gives you some examples of comparisons. As you can see here, the postcode, a quarter mile radius. The property that we purchased was on the market for £85,000. We offered and purchased it for £85,000, which might seem bonkers for a lot of people, saying, "Why did you pay the full value? Why didn't you get discounts and stuff?"
As I said, it's not always necessarily about the discount. We look at 7 key criteria when we're looking at a deal. We class them as our 7 Golden Rules. I'll give you that bonus download at the end of this training so you can see the things that we look for and use those on your own deals as well. We looked at these because, this particular property as an example, we didn't need to buy at a discount, and we couldn't negotiate any further. That was the vendor's kind of bottom line in this property, but it still worked for us.
This deal was also in very good condition. It was ready to go. It didn't really need much of a refurb on it. The reason why this property worked is that it could be rented as an HMO. It was also suitable to put on the 5-year lease, so similar to [inaudible 00:35:08] where you got no management, no maintenance, the income that we generated on this deal is 10,400 per annum. It's a net return. It makes the property very appealing while we hold it and also makes it an easier property to sell like drawing down the line to an investor because there's a lot of benefits to this deal over and above any other property that might generate in the local area that only rents out at 400, 450, or 500 or 550 per month. That is so because of the strength of the property, the location, the fact that it's an HMO on this lease setup.
Hopefully, as an idea, you can see some of the example deals that we're doing and some of our clients are doing now. An example that you don't have to buy it at a discount to make the property work is just understanding the different strategies, and we'd just look at two today. There are lots of other strategies that we cover in the training course for you later on down the line if you wanted to look at that, but just to give you hopefully an example and an insight in terms of what can be done with these real-life property deals.
Finding Bargains In Your Area
Okay, next, now we've looked at I suppose some examples and gave you a bit of an idea on some of the strategies, before we go into how to exactly find the deals, which we'll do in the training in a second, what I wanted to just cover over really is why a property might be suitable or interesting for people as potentially an investment and what to consider when it comes to locking the deals because this, combined with everything else, kind of makes up really what strategy might work and then also sets the scene really for the types of deals that we're going to be looking at in a minute.
Now, if you're new to property, there are things to consider when it comes to why a property might work not only now, but also 2016 and beyond.
For some people, they'll look at it because it's going to make them a good investment. They like to think of things like, as we said, financial freedom, their lifestyle, the pension plan. That's exactly why I got started in property. It's a fantastic model for that because it's not a new kind of fad or latest business idea or someone with kind of a fly-by-night strategy or MLM schemes if you've looked into anything like that.
From a comfort point of view, you can see the asset. You can feel it. You can visit it. You can drive past it at 2:00 am in the morning or 3:00 pm in the afternoon if you wanted to just simply to check and make sure it's still there. That's very appealing. It's also a very solid asset that generations of wealthy families have invested in as the cornerstone of their wealth. You don't have to reinvent the wheel with any new idea or a fancy strategy.
You can learn from people who have been there and done it simply by looking at the Sunday Times rich list, which every April shows I think the top 1,000 people, wealthiest people in the UK. It's a very interesting read because it shows you an insight in terms of how a very healthy number of people on the list have made their money on properties.
They come from a property industry or property background, but, second to that, almost all of them on the list have a large proportion of their wealth in properties. Even if they've made it in another industry, they typically translated it into property and purchased [a known 00:38:04] property as an investment over the long term because of the benefits that we looked at previously in this training, the cash flow, the income, the asset, the stability and also the equity that comes with it, which are all great combinations.
Now, another reason why property is so popular is that it is so much more than just bricks and mortars. It's people's homes. It's not just kind of an asset and an income stream. As a property owner, whether you're an investor or a landlord and you're looking to maybe keep or sell those properties, you know that you're providing a service. If you're owning it as a landlord and keeping it, you can provide a safe and secure home for families to live in.
If you're selling that property and you know there's always going to be a demand because shelter is a basic human need, so you have that fantastic combination when it comes to supply and demand, that there's always going to be somebody interested in your product, if it were, or your asset and whether you're going to sell it or rent it out. It's very comforting to know that there's a demand for that service.
Fundamentally, there will always be a demand because the population is growing and, as we kind of hear regularly, they're not making any more land, but the need for accommodation and a high-quality accommodation as well is always increasing, so that's great.
We know it can be a good investment if it were, but the cash flow side of things is very important as well for any business or investment. It's massively important, but property has 1 large advantage when it comes to this compared to other assets, and that is the pure ability to leverage, which is using mortgages or financing to allow you to purchase that property.
Now, I'm not saying that you should definitely leverage or use financing because this is a very personal choice, although many smart investors that I know choose leverage when they're coming to buy a property, and that might be with other people's money, things like joint ventures or it might be mortgages. That's because it allows them to buy more property. It allows them to increase the potential income and equity that they have in that kind of portfolio if it were because they can do many more deals.
However, there is still a large percentage of people and investors as well that choose to have property and income, but that means they have no mortgage on it. This is their choice. As I said, it's very personal when it comes to these kinds of aspects. When you look and think about leverage and look at it in detail, you have 2 very distinct advantages. Now, the first is the ability to buy more value for your money.
For instance, if you go and buy a property that's worth £100,000 and if you leverage, you don't actually need a £100,000 of your own money. You can leverage and get a mortgage to finance most of the purchase price. This could mean that you only need a deposit really of, say, 20% or 25%. In this instance on that particular property example, you'd only need a deposit of 20,000 to 25,000. You can then buy that £100,000 asset with only 25,000 of your own money. This is what the power of leverage gives you. It has a profound effect on increasing that return on investment.
Now, if you think about it, if a 10% return on property prices on that type of deal would be a paper profit of £10,000 on the above example. However, if you'd invested the 400,000 into that deal and it gives you a 10% return on investment, then that's okay. It's not bad at all, certainly, but if you'd used leverage and you looked at the same deal, but you'd only invested 25,000 of your own money, your return on investment instead would have been 40%. Hopefully, you could start to see how that powerful leverage starts to come into effect. What's more, leverage also is even more impactful when you consider how it ties in directly with inflation.
Inflation and Leverage
Now, inflation over time reduces the value of real money. As prices get more expensive, you can buy less and less with your £1 coin in your pocket, if it were. When inflation rises year-on-year, your actual leverage or your mortgage would still be staying the same if you're in on an interest-only mortgage or even coming down if you have a repayment mortgage. This is because your level of debt isn't increasing. If inflation is going up, but you have a mortgage on the property, your debt stays the same. This means that your balance of your real-term mortgage is actually getting eroded year-on-year even without any change in property prices.
One of the main reasons why people say invest in property is because property prices always increase. They use the rhetoric of how they double every 7 to 10 years, things like that. That's great. If they continue to do that, fantastic, but in times of recession or when the prices are unstable and there's no growth, this statement doesn't really mean anything. It's going to be that good, old, solid cash flow in your pocket that matters. That's why inflation and leverage are so powerful because, with leverage, even when house prices aren't increasing, inflation is working its magic in reducing the real-term value of your initial debt because what you can buy, as I said, with that £1 in your pocket gets less and less every year, but your real-term mortgage is staying the same.
The beauty to this is, on the other side of the coin as well, is the cash flow part of your property investment is generated from rental income. Inflation works on this side of the fence for you, too, because, year-on-year, as inflation grows, so do people's wages to an extent. It might not always keep in line with inflation, but they do go up and, over time, so does the rental value of the property. What was once a property that you could rent out for, I don't know, let's say £500 per month, over time, goes to £525, then £550, £600 to £700, £800, and it starts to grow, but, again, if you're on a repayment or an interest-only mortgage, either way, your mortgage value would still be staying the same, but your rental incomes starts to increase. This is happening regardless of what's going on with the property prices. Hopefully, you can start to see how the benefits really of inflation starts to kick in when you do look at leverage as well.
Property as a Lifestyle Business
Finally, property is great because not only is the cash flow good, the benefits are good that we've kind of discussed before, but also it gives you the potential for a fantastic lifestyle. As I said, my current business is run on 2 days a week. That gives me the freedom. If I want to do more work or look at things, I can, but, ultimately, I have that choice of freedom. That's what property gives you. It has many advantages over other traditional businesses, too, in as much as it is a lot easier as an industry to run hands-free.
Now, I know a lot of people that tend to run their own businesses, but all of these businesses have 1 thing in common. They're all very staff intensive. If you own your own business or if you hired a manager or a director or supervisor, you understand how much of a headache having staff can be. It's one of the most stressful parts of any job or being a business owner. Managing the employees and having them rely on you for their next paycheck is very stressful. No matter how you set up your business, it can be very hard to put on autopilot when you have employees operating because you need to oversee them or have somebody to oversee them. Unless you're a very high-level business so you have it completely automated and you don't need to be involved in it, it's very difficult to run hand-free, whereas property is different to this.
The reason for that is because, ultimately, the industry and the business is set up to allow you to easily streamline and systemise it over and above any other industry because, instead of hiring staff, you can very easily hire and outsource work to contractors instead. Whether you need a solicitor or a mortgage broker, a letting agent or a maintenance contractor or property source or anybody in between, you can bring people on board to do 1 task within that business. You don't have to hire them and have the requirement or need for that staff.
Also, if any part of that chain isn't pulling their weight, there's no problem. You may simply stop working with them and choose to work with somebody else instead. Now, if you picked the right team, hopefully, you shouldn't have to kind of do that, but it allows you to be very flexible. It allows you to, if you picked the right team or contractors from the start, you don't have to go chopping and changing. It allows you to have that team and network to run that business for you so you can take a step back. You do have flexibility and choice for it to be a lifestyle business if you want to. It's not only the income, it's not only the asset and security that we've looked at, all those elements, it's also the flexibility and how that works.
Now, 1 thing we asked regularly with clients is in terms of when should they buy, so, if their market is buoyant or if it's stagnant or if it's dipping, we still get these questions, is now the right time, is that overpriced? Is it underpriced? A whole host of things.
Supply and Demand
Now, property fundamentally is like any product service or asset. It all boils down to supply and demand. The good news is you don't have to guess or try and predict the market. One of the concerns that people have with property is that it historically goes on in cyclical patterns, so you have dips, peaks and drops, highs and lows where property prices will kind of go in. That's typical because of the psychological nature of humans. They'd look at putting great emphasis on what the crowd and the herd mentality tends to do.
You don't see any different with property. It's exactly the same. Historically, it follows the cyclical pattern. Now, there are things like government stimulus, tax changes that we've had, for example, this year and in previous years as well, also access to finance. Outside involvement like this will always play a factor in property prices. In reality, what it tends to do is affect the severity of the boom and bust and also how long it might go on for, but it doesn't stop it from happening if you were to look at historically prices over a period of time.
Now, this is because you will look at, let's say, the supply and demand element of property ownership and whether that's with a housing index from Halifax, Nationwide, Land Registry, you can see the trend of property prices increasing and decreasing. That's going to be a continue because of the supply and demand element and the psychological nature of humans wanting to follow the crowd. If the prices are increasing, they'll start to buy. If they're decreasing, they'll start to sell.
If you take a step back and try and visualize what this might look like, you can see it starts to become almost like a property clock where prices and yields rise and fall as time passes and then it comes full circle. Very often, people are interested and wondering when is the best to buy. Is it now or what part of the cycle should they consider to invest in and, also, where they're going to make the money on property? If you're starting from nothing, is it best to wait or do a different strategy now?
These are very hard questions to answer because those depend upon when is the right time for you to buy, but, ultimately, if you had a crystal ball and you start to look at this property clock, then you might think, okay, surely, it's the time to buy when the prices have dropped. Maybe they stabilized a little bit and even starting to rise, but it's impossible to try and predict this. Even the brightest investor might struggle with this part of the cycle.
The good news to property really is you don't have to try and guess because property isn't like stocks and shares. There are a high cost and timeframe to buying and selling property that you need to consider. It's knowledge in the transaction. If you try and pinpoint the exact part of the cycle to maximize your purchase price, it can be very frustrating and you can waste a lot of time.
I know people who have been bidding on properties for the last 12 months, and they've still not found the perfect property, if it were. That's because, ultimately, they're trying to guess the market. They're trying to buy the top ... or the bottom, sorry, of the price and try and capitalize on growth. It significantly limits your growth if you try and follow this approach because you can go through a similar situation where you have a 12-month timeframe where you've not purchased anything. Instead, it's much better to simply understand the market, understand what part of the cycle you're in and then buy those properties based upon their intrinsic value. You're buying other things other than just at the right time of the cycle and other things other than just capital growth or equity.
If we were to relate this to other businesses, one of the richest man in the world, Warren Buffett, he's got a very famous saying that "it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price." Essentially, with that in mind, it's not about the discount. It's not about buying at the best value if it were. It's about trying to purchase a fantastic asset, something that's got great fundamentals to it, something that gives you great income and cash flow, so, focusing on the fundamentals, then you shouldn't go wrong, when it comes to buying and finding that property.
Okay, so, now, we know property is great for cash flow. We've looked at pension plan strategy for time and incomes, how can you have a fantastic lifestyle. Now, obviously, we need to find the actual deals that are going to help you achieve this, and this is what we're going to share with you now.
4 Property Sourcing Techniques
If you remember the 3 deals that we showed you earlier, of properties that you can find on the market with an estate agent for free, no marketing costs, and they're all found using the exact 4 techniques, plus the additional techniques that we cover in our property training, mentorship program, but I'm going to share with you an insight on how to do this now so you can use these in your own local area. These are properties that, as I said, not just myself have found, but also the clients that have gone on our training have found.
It's these types of deals that will allow you to replace that job, if it were, or a career and have a pension plan, an asset and an income that's coming from elsewhere. Now, also, as I said earlier on in this training, you don't have to have 10 years property experience to do this. You don't even have to have spoken to an estate agent before to do this.
These are examples I'll find ... or I'll show you how to find deals in your area. You can do it in the comfort of your own home on a Sunday evening, Tuesday afternoon, Saturday morning, whenever you want in your pyjamas. You don't have to go down the agents and start negotiating and haggling or anything like that. It's simply a case of understanding how to find and shortlist the very best deals and then narrowing down the ones that are going to be specific to you.
At the end of this, after this particular element of the training, I'll give you access to the free downloads as well. You combine these with these techniques to hopefully give you the best possible discounts when it comes to finding those deals on your doorstep.
We're going to go straight into it and look at the deals. Now, just as an insight in terms of the things we're going to be looking at, we're going to be using Zoopla's property portal and we're going to 4 tactics.
1) Property Sourcing Technique 1
The first one is properties that have been on the market a long time. The second is properties with very little interest or they've been overlooked by the competitors. The third is properties that have had the most price reduction, and then, the fourth, we're going to be looking for some price discrepancies, some hidden gems, the ones that, again, other people have kind of tended to have missed.
If we're going to jump off to this screen and just go to the Zoopla screen, just bear with me a second. Okay, so, hopefully, you can see my screen now on Zoopla. First things first, you can see at the top here, I'm logged in. What you want to be doing, if you haven't already got an account with Zoopla, you want to create an account. It's free to do. Don't necessarily have to do that do as we're doing the training, but you can do it after the training and you can start [inaudible 00:52:33] some of the deals to it as you start to go through it. It just helps you save listing as we're going through them essentially.
What we're going to be looking at is Zoopla, it's this address here, www.zoopla.co.uk. This works anywhere in England, Wales, Scotland, Northern Ireland. I'm sure it works as well - typically that we cover or have clients and, at the moment, so the areas that we focus on, and our clients tend to buy in is usually in England and Wales, but the principles here should be kind of applicable everywhere.
We're going to be looking at leads because it's an area that has quite a good number of properties. It's not too large, it's not too small, so, hopefully, it gives us enough examples to show you on the training that we do in here. We're going to be looking at filters. We'll go for a minimum price of about 40,000, and anything below that tends to become hard to refinance on, and so you want to keep it suitable across the board, to about 150 property price.
Let's look at houses. Minimum beds, let's do 2 beds for now. Click on "Search," and then we can improve the filters if we need to in a second. It's brought up 590 houses, so I might limit that a little bit. Let's go down here. Let's do terraced houses, semi-detached. Let's keep it pre-owned only. New build is very difficult generally to do deals, so we'll keep it pre-owned only. Ownership type, so anyone with sole ownership. You can get shared houses in some property locations, but it's not really what we're going to be looking at here for the mainstream, non-retirement.
Again, it's just not filtering the details down too much, but it's just making it a bit tidy. Buyer incentives, we don't need anything there. That's fine. What I'm going to do is move this up to 3 beds. Let's see what it gives us. There we go. It's reduced it down to 250. It's a more manageable number for many people. Now, if you're looking at a particular postcode, you might want to have some of these filters a bit wider, so maybe different price ranges, more or fewer beds. Play around with the filter however you wish really. This just gives us the dates that we need to start off with, and that's it really to kind of start.
I'm just going to move this to a 100 so it gives us a chance to look at as many properties on the listing as we can. Now, as we scroll down, now, what you'll notice here is on these dates, in some of the listings that we're doing, the dates are going to change. We're recording this in February 2016. This detail is relevant, as I said, in an area and it will be relevant now or in a year's time or in 2 years' time as long as you don't change the filters sets because the information is applicable across the board. Just in case, if you're looking at this in maybe 6 months' time or 12 months' time, don't worry, the date here is, as I said, fully applicable.
The first thing we're going to be looking at is properties that have been on the market a long time. If we click here, we've got a couple of different filter set. The most recent is the one we're starting off with. Now, this lists properties that have recently come to the market. Essentially, what we want to do is a reverse search. We want to go all the way down to the bottom of this page. Scroll it down. Click on the final page, and this will show us the properties that have been on the market the longest. It's a reverse search from the most recent listing essentially.
Now, 1 thing to note here is the listings, it will give you, as you can see here, the dates. This March 2010, so 6 years or so now. I would debate whether this has been on the market for 6 years. The likelihood is there is some discrepancy. We always find this with the listings.
There are going to be some outliers that aren't relevant where maybe the listing has just never been updated or has never been taken down for some reason or it's with an old agency, they closed down and that branch's listing is still live. There's a whole reason, a whole host of reasons why these properties might be listed. I would tend to take some of the information with a pinch of salt on the very old dates, but, generally, the majority of them, if we look at the 80-20 rule, 80% of them are going to be correct.
Now, when we're looking at the listings, what I would use here is go backwards, come back up the list based on the criteria that we're looking at. If you're looking at a straightforward, ready to go rental, nice condition, then use that fact ... use that, sorry, to factor in whether these properties are worth adding to the list. Click, have a look at the pictures here. It looks very good, easy to go, brilliant, so we can add that to the list if that's your strategy. If you were looking at, let's say, a job replacement strategy, refurbishing, refinancing and pulling some money out or even flips, this is probably not going to be the right deal with you because you can't add enough value to this particular property.
Now, there are other techniques that we'll show you in the VIP training course, how to find properties that are in need of refurbishments and a number of other tactics, but, as a general rule of thumb, this gives you a good insight in terms of how to start adding to the list. If this is the right postcode, if this is the right type of style, price range, all we do is simply add it to our listing. It's as simple as that. Scroll up to the list and pick out the ones that are best suited for you. You can tidy up this filter based on postcodes. You don't have to wade through the areas that maybe don't work for you, price ranges, beds, all that kind of thing.
I would simply scroll up and add the ones that work. I'm just going to save a couple here so it gives us some examples to show later on. Now, when it comes up to timeframes, what I would usually look at, so this was on the market just over a year ago, I would usually look at to around 6 months. If you're in a very active market, anything that's been on the market for over 6 months, it starts to look a bit strange. There's a reason maybe why it's been on the market that long, but it's worth having a look at. It could mean things other investors have maybe missed or a wrong description, wrong photos, badly marketed. It just gives you a chance to maybe look at that as a potential deal.
I'd go back up to around the properties that have been on the market for over 6 months for this particular or first technique. The second technique, we're going to be looking at properties that have very little interest or being overlooked by competitors. Again, keep the filters exactly the same.
2) Property Sourcing Technique 2
Next, we're going to be looking at this section here, which is the most popular.
At the top of this listing, we're going to have the properties that have been viewed or clicked on or looked at the most by investors. As we go to the top here, so this one you can see nearly 2,000 views in the last 30 days. That's a lot. It's very popular maybe because of the price range maybe because of the location.
What we want to do is look at the ones that maybe, just maybe, other investors have overlooked, and that, again, might be because they're poorly marketed. It might be because the price range is wrong, but the vendor is just a bit stubborn on pricing and hasn't really considered other offers. They don't get any interest, so they're not willing to drop, so it's kind of a Catch 22 almost. If you can try and spot these outliers, then you can start to build a bit of a shortlist on the property deals that might work.
Here, we've only got 113 views. It's only a 10th, sorry, it's a 5th of what the original listings were showing at the top of the list, so these are perfect. If you scroll further down and look at this here, so no views in the last 30 days, so something is certainly going on with that. That's actually just added. Scarp that. If we look at, I'm coming up a bit further. 73 views in the last 30 days, so, again, maybe there's an issue there with this particular property. If the price range fits the location description, perfect, let's add it.
You can see when it came on the market. If it's, as we saw below here, just add it. If it's only just been added, then you can understand why there's maybe no views. If it's been added a while ago ... so this is last year. Then you can start to see, okay, maybe 73 views in the last 30 days when it's been on for a while is pretty poor, so maybe it's worth having a bit of a look at further and seeing if can dig out the motivation behind that deal. That the second option.
3) Property Sourcing Technique 3
The next tactic, we're going to looking at the most reduced prices. If we go to this filter here, "most reduced," let's wait for it to work. Okay, perfect. At the top of this listings, we've got all the information we need to make a decision. You've got 2 bits of pertinent information. The first is the overall price reduction. 28% is a decent hit on that price. Last reduced is the date that it was reduced.
Now, if we scroll down, we can see that some of these reductions are recent. Some of them are very ... slightly older. You want to be taking too factors into account. We typically look at, as a rule of thumb, on this criteria, price reductions of 5% or more, start to maybe be interested. That depends on the market. If the market is dropping, you'll look at first price reductions. If the market is increasing, you'll go to last price reductions. That just gives you an idea of what price we tend to look at in today's market, which is relatively buoyant.
Last price reduction, that's less relevant if it's a big reduction and starts to become more of an issue if it's only a small deduction because we want to be finding vendors that are motivated. Recent price reductions, they tend to be the most motivated vendors. Something might have happened, a change in circumstances, they dropped the price because they really need to move. If you've got both of those, a big discount, recent price reduction, fantastic. If you've only got one of them, it can still work. It's just a case of understanding which one you need and kind of when really.
That's the third option. We're looking at price reductions. I deal recently anything 5% or above, so I'll just scroll down here. We've got a number of potential options here. I'm just going to save a couple. This one is already saved, so it ticks the boxes for one of the other criteria as well, which is great. Let's see, so I'm just saving these randomly at the moment because I want to show you something near the end, but, hopefully, the principle of which property deals we've got gives you a good idea. As I said, you need to factor in as well the condition if it works for you based on a refurb model or based on a ready-to-go rental.
4) Property Sourcing Technique 4
Next up, we're going to be looking at property discrepancies. We're looking at prices here. We're going to be looking at the map section next. If we click on this map area, scroll down, again, change the filters if you need to, but what we're looking at here is to go a little bit tighter on the listings. The ones with stars are the ones we've already saved. The ones with the Zoopla sign are just kind of normal listings. Okay, that should be fine.
What we're trying to find here is, if this was, let's say, we were happy with all of our leads, but we were really happy with this particular location, we want to start looking at properties that might have some price discrepancies on the listings. Let me show you some examples of what it means. That's 3-bedroom for 135, 145, 140. Their prices are relatively close. There's nothing massively different. That's quite a difference, 70 grand. That's only on for £70,000 when all the others have been over 100 so far. I'll definitely save that. It could be a beauty.
If we scroll down, 110, 130, 115, and it's just as simple as this really. It's just a case of going through the listings on the map and seeing which properties ... a slight difference, so 108, it's not too bad, 150. That's 99. That one's 130. That one's 140. This 99 one, it's quite a difference in price, so, again, I'd save that. You, hopefully, can see we're just trying to pick out the hidden gems or prices that we wouldn't have spotted on the other listing criteria that we chose, but we can spot it here. That's 120. That is 125. That one's 150. It's probably too close the price range for me to add them. This one's very expensive, but these two are quite close on the price, so I'd leave that in.
It's as simple as that. It's just a case of going through the different listings and seeing where those price differences lie. If we pick out some quick, 85, 95, that both showed up on the same section. That's 95 and that's 85. It's enough of a difference for me to look at. It's over 10%, so I'll add that in and save that listing. Hopefully, you can see we started to build up a bit of a picture of what properties that are going to be suitable in our area using these 4 filter techniques. This is just 4 out of a number of the ones that we can look at, but this just gives you an insight in terms of how to start looking at the deals.
Now, in this listing, the next thing that we do to I suppose make the most of our time and make it most efficient is to try and structure which ones you're going to be doing view-ins on. I would then go through all of these property listings individually and start to look at them in a little bit more detail. Is the floor sizes, the layout, the map, the descriptions, does everything meet your criteria? If it doesn't, don't hesitate to drop it. Just click and delete out the saved list and then narrow down your shortlist from that.
Once you've got a very tight list based on all of the properties in there that you know work for your criteria, the next stage is looking at the agents, so who's actually selling the properties? This is because if you're maybe working Monday to Friday and you have only the evenings and weekends free to do view-ins, you don't want to be spreading your time too much and viewing 1 property with 1 agent, 1 property with another, the third with another. You want to try and keep them as condensed as possible. That's not always possible, but a way you can, it just brings a little of efficiency to the table for you, so, when we're looking at these listings, as you can see now if we scroll down, we can start to get a feel for who has the the most listings.
William H. Brown here has got 3, 4, 5, 6, 7, 8. Certainly, these guys have got of listings and they might be different branches. As you can see here, LS28, LS6, LS28, but what we're trying to find. Let's see, Hunter's cover L28, Bradford BD1, so Hunter's got 2 agents.
They've got an agent in Bradford and an agent in Pudsey. Each agent only actually has 1 listing, whereas William Brown has a number of listings with different agents. This William H. Brown, from LS28 has got 1, 2, 3, so I would be calling William H. Brown first and viewing these three first and then looking at the others. It just allows you, as I said, to bring a little bit of efficiency really to the table based on your criteria list which is going to be the most important to look at and to consider.
Hopefully, that gives you a bit of an idea on some of the Zoopla options. We're just going to jump back to the slides, bear with me a second, and just to give you a bit of a recap really essentially of everything that we've covered now and just give you a bit of an idea on those kinds of bonuses that we discussed at the beginning of the training.
VIP Property Training (No Longer Available)
As a recap, now you know the strategy that you're looking to use and also whether that's going to be, as we said, a pension plan strategy, a job replacement strategy, how we can help you best based on your current job situation and circumstances. Hopefully, you got some very good techniques and tactics that you can use in your own area right away. It's important to take an action. I know many people might be watching the training, thinking, "That's great. I love all those ideas, but what's the kind of the first step, if it were? I'm still a bit unsure on how to pick an area," or you're still a bit unsure on what makes a good a deal, all that kind of side of things.
This is where we can help you. If you're looking at maybe taking action now, how can we get you over the next 12 months to achieve this kind of retirement income so you can quit that job, career or industry you're currently in? How we do this is with our VIP Property Training and Mentorship Program. If you'd agree that if you had a mentor that's got the property experience, that's gone through all of these hurdles, that's made all of these mistakes beforehand and can give you one-on-one support and lead you step by step that you'd be able to achieve your goals quicker, faster and help you break through any kind of obstacles, this is where we can help you with this next stage. This is with my personal help directly with yourself over the next 12 months.
1) Private Mentorship Group
As a part of this, what we've created is a VIP Property Mentorship Group. This includes an in-depth 12-week online property training course. This is something that you can do whenever you want. You don't have to go into an event in London or a hotel far away out of your area for a whole weekend. You can do it simply in the comfort of your own home. You only need access to the Internet. You can do it on a laptop, tablet, phone, whatever you need or whatever you have access to, whether you're at a lunch break, at work as well or whether you're in your pyjamas on a Sunday evening wanting to catch up on a few bits.
It's designed to be flexible as well. It runs through a range of different property strategies, a range of different techniques and covers everything from start to finish, so not only how to choose a strategy, how to find an area, but also how to set up your goals initially, how to find the properties, how to negotiate with vendors, what to look for when you're viewing the properties all the way through to what happens at the end in terms of selling those properties on or renting them out. It goes much deeper than what we ever could do in the training that we've done today for you.
Before I give you the links and the access to the bonus documents and how you can get free one-on-one mentorship support with myself and how you can potentially join this training course, I just want to share with you a bit of an insight and walk through what this training course looks like so you can see if it's right for you. If you bear with me 2 seconds, I'll jump off this screen and go on to the training course backend.
2/ Course Walkthrough
This is it, just jumping into the backend of the training course now. I can show you an insight and walk through what's covered in the training. Up here, we have the different menu topics. Down here, if you're on the homepage, you'll be able to see all of the topics listed that's covered.
These are all videos, downloads, cheat sheets. There's a range of content here. I'm not going to go through each one because it's going to take a bit of time to show you that, but, just as an example, let's say in this section here, industry news, this is where I combine and collect all of the relevant information that affects all of the strategies that we do day to day in our property business and affects directly the clients that we tend to work with as well. It saves you having to scroll through different industry sites, different news, articles, which one are relevant, which ones aren't, the impact of different legislation changes, taxation changes, finance. Anything that's hitting the press that we think is highly relevant, that's where we'll put it for you.
Next up is going to be these sections here. We have a range of different topics. We do 12 weeks' worth of training, 1 topic per week. The first 4 topics are in this section here. Just as an example, let's say we choose property strategies, in here, you can see at the top all of your downloads, so any of the downloads from this particular topic or any topic would be at the top of the page. You'll just scroll down to this section. We do an introduction in terms of what property strategies might be right for you. We look at Vanilla buy-to-lets, trading leads, different kind of recycling your deposits, so similar to what we discussed today or touched on today, joint ventures, HMO, lease to let and any other strategies that we think are highly relevant and easy to pick up and adopt. Whether you're brand new to property or got some experience already, we will add them into the training here.
As you an see, this is 30 minutes, 30 minutes, 20 minutes. They're all varied kind of lens and sizes really. That just allows you to get started in property with these strategies. Whatever your starting position, whether you're starting with a 100,000 in the bank or 1,000 in the bank, whether you're staring with no experience or lots of experience, this is where those strategies will help you get started.
Next up, if we go to topic 3, as an example, this topic is so we can show you how to buy in the very best of areas for not only capital growth, but also to get the best returns, form the tenant profile and for your cash flow so it gives you the chance to get a peaceful night's sleep knowing that your property is in the right area and it's being looked after with the right tenants.
Again, all the downloads at the top, the different videos here that we look at in this particular location, how to choose your area, what to ... getting to know your investment area, understanding the fundamentals, all the way through to particularly spotting an area based on what we looked at, which is hot and cold spots, so some quite interesting videos on that basis here. As I said, it helps you have a peaceful night's sleep knowing that your properties are going to be in the right locations for you.
Let me show you 2 other things, if we go to the topic, let's see, topic 8. This topic really looks at how to quality leads. When you're finding property deals, whether that's directly or even if you're looking at with a property sources, it's important you understand what properties are going to be right, and, not only that but what to look for in each individual property deals. This is where we look at how to qualify any leads that you might come across, whether you source on the market, with the estate agents or off market leads with leaflets, newspapers, whatever it might be. We cover exactly how to deal with the estate agents, how to deal directly with vendors, and really an insight and an introduction in terms of everything you need to qualify the leads that might come through. This saves you countless hours because you're not viewing the wrong properties.
When we first started off looking at properties, the amount of time we wasted was understanding or trying to understand if it's the right area if it's the right property, is it even a potential deal, is the motivation right, what kind of vendor, what are they looking to sell. We can call out all of that for you in this training and these topics essentially.
On top of that, we've also got case studies here. These are live case studies showing you step by step case studies that some of our clients are doing and we're doing, showing the ins and outs of everything that goes into a deal, issues that might arise on a refurbishment, things to consider when you're finding a property or finding a tenant. All of those kind aspects are covered in the case study, and then, finally, the resources section.
This is the little black book resources. We click on here. It will show you an insight in terms of all of the resources I use in day to day part of our kind of business, all of the links. As you can see, there's a fair few in there that are worth looking up. If we scroll way back to the stop, so that's all the contacts that we use, all the resources that we use within the business. It's a very good additional information that goes alongside the topic and then, again, just as a bit of an overview on the topics really.
A lot of people look at the training because they want to know how to find deals. That's great. We cover that, plus a lot more, but finding deals is just 1 aspect of it. We also look at how to find deals on the markets, with auctions, the estate agents, in an earlier topic, deals off market, so using leaflets, newspapers, window cards, a whole range of things like that.
Also finding investors, if you're maybe looking to scale significantly with your portfolio, working with investors to find properties is very important, so we go a full topic simply on that negotiation techniques, sales process and renting. As you can see it's got everything here that you would need to get started and build and run a property portfolio.
3) Support and Access
Not only that but when you join the training, you will have access to it ongoing. If you wanted to look back at any content pieces in 6 months' time, in 12 months' time, you're able to do that. You just simply log in with the membership details you will have. Anything additional that is in the training, all of the industry news updates, any additions, tweaks, changes, updates that we do to any of the training modules, resources, case studies, everything gets upgraded automatically and updated automatically so you don't have to do anything. There are no additional costs. We don't do any upsells or anything like that with the training. You will get access to every single piece of training content that goes in here.
That's important because we don't want you to feel like you've got information or questions that are unanswered, so, as part of the training, as we have full support so, at any stage in time, you got questions, you got something that crops up, drop me an email, email@example.com. I'm more than happy to help, and we can get you over those hurdles and barriers.
4) Your Circumstances
This training course is very detailed for a number of reasons, one, because we want you to have everything you need to get started and also, if you're already involved in property, to progress to the next level; two, because it also to cover everything from everybody's situation really. Whatever position you are in when you're getting into property or trying to grow your portfolio, whether you're a stay-at-home mom or whether you're an experienced investor, we have those members and that wide network, if it were, in the training course currently.
This is great because it allows making an introduction, whether you're looking for maybe to become a property sourcer and have investors to buy deals, we can introduce you to those clients. Whether you're an investor wanting to buy ready-to-go properties and maybe you're based out of the areas you want to invest in or maybe you're based overseas and you want somebody on the ground to help you with your property deals, again, we can introduce you to that as part of your training course. It combines everything that you would need within your property career.
Now, in this training as well, what's important with the case studies is we show you how you can do the deals, so not just the theory, but the actual reality of doing it. We've had investors that come on the training course that have done other types of training courses, property related with other companies that have cost them a fortune, so a £15,000, £20,000 investments to try and get a mentorship on board to just help them, I suppose, get started in property, which is bonkers because it doesn't need to be that expensive.
The people who have come on to our training have provided many reviews, many testimonials, which I can show you in a second what people who have come to the training and directly as well, they've told us the information, the support that they've got is more actionable. The mentoring that we offer and the support that we offer, as I said, is first class compared to the other courses they've done for 15,000, 20,000. But we would never be in a situation where we'll say to people, "Okay, look, it's going to cost you this amount of money to get started," because it's just crazy. It doesn't need to be that sort of level of barrier to entry for any investor, whether you're a beginner or advanced.
5) An Accessible Investment
Indeed, many other property training courses that you might look up are that high because they've got ridiculous overheads. They also know that done well, property can make investors a very good return, so they understand and they think that an investor is going to warrant paying that level of, let's say, cost on day 1 because they will get it back in the deals they'd do. Maybe, but it doesn't have to be that expensive to get started in property. That's why we created this training course and this mentorship because it cuts out all the expensive overheads. We got no need for expensive hotels, event seminars, admin sales staff, all of those elements.
We can pass on the savings directly to yourself. The ongoing access for the access for the training course means that you can access it wherever you need to, so it gives you the potential to - I suppose - have the full-out training that you need without the heavy price tag.
In addition to that, my business is in reality not just training, but in doing deals. I'm actively involved in property, so, by delivering training, what it allows us to do is grow our network as well. We have people on the training course that bring deals, that we can present to other investors. We have investors that want deals from the clients on the training course. It creates a fantastic network group. By allowing only a few select high-quality individuals and investors and property sourcers as well to join our private VIP group and training modules, everybody wins, everybody gets the benefit.
Personally as well, on top of that, I prefer to work with a smaller group of a number of people. I don't want to be going up in front of a massive seminar and talking to thousands of people. It's not my personality. It's not my business model. It's not what I want to be doing. I want to work with a smaller group of investors and people like yourself that are interested in growing a property portfolio, growing a property business, whether you're getting started or whether you're already experienced in property, and helping you succeed, and, together, we might do business together later on. Down the line, we might do deals together. We might be able to introduce you to other investors or other sourcers, and, as I said, as a network, everybody wins.
Now, at the beginning of this training, I mentioned about the potential to get some free one-on-on mentorship directly with myself so we can help you together grow your property portfolio. Now, if you go to our website, you'll see that, for the general public, we're currently sold out on all of the mentorship and consulting times that we do, so we don't have any availability in our estate agency or auction consultancy. That's all sold out. Even the property deal sourcing that we do is fully sold out currently. The only thing that we do have availability for is the training course. That aspect of it, we have to limit. We can't take on multiple people every single month because it's just not possible. As I said, it's our time together, so it's always going to be very limited.
It means that many months, new investors do unfortunately have to miss out on that opportunity because we only have limited spots opening up on the training. However, there is a way that you can get access to that, and I'll show you that now. I'm going to jump off the training element of this course and just go back on to the slides.
This is an offer that you can only get because you've signed up for this training today. As I said, it's not going to go live on our website. If you wanted to join the training course today or, indeed, next week or next month or later on this year, you'll get access to all of these elements. This isn't going to change. We don't have like any false promises on the training when it comes to "join now and you'll get this special price," anything like that. As I said, this training, you maybe watching in 3 months' time, 6 months' time, 12 months' time. The information contained in here is valid whenever you're looking at it. The bonuses that are on here are valid whenever you're looking at it. This offer that I'm presenting to you today, again, is valid whenever you're looking again. If you want to join this training, you can do it at any point in time.
6) One-to-One Mentorship
The benefit that I will offer you today from taking action, and the reason why we do this is because I want to reward you for showing that you're in a position now to get started with property and take action. You can join, as I said, the training at any point in time today, next week, next month, next year if you wanted to. The current price for it is 497. That might change, but as we kind of stand this, as we record this in the training today, that's the current price. What I'll offer you as special bonus though is, if you join up in the next 15 minutes of watching the full training module is the opportunity to do some one-on-one mentorship time together.
As I said, this is not available on the website. It's not available to the general public. We don't offer it to everybody because we simply couldn't. If we had a number of people join the training now, it's just not going to happen. We can't have one-on-one session with every single person because it's my time and your time, but, because I know people in the position to take action can show that they're in a position to actually implement all of the steps of the training over the next 12 months, I'm happy to offer this for you as a special bonus if you're in a position today to take the offer.
This includes all of the training courses and modules that we mentioned here. You've got the 12-week step by step in-depth property training that I just went over and the training course backend for you a second ago, the VIP Group Membership. Whether you're looking for joint venture partners, investors, property sourcers, we can introduce you to clients like that, including myself. We also do businesses or business on property deals together with people on the training course.
The little black book of resources, private members club as well, so any deals that we get that we offer to the training course members and our VIP clients before they get offered elsewhere, so these off market property deals that don't go live on the website before they get offered out to our training course members, so you get access to all of these benefits and bonuses.
As we said, it's only available for £497, so you don't have to spend £15,000, £20,000 on some of the property training courses. You can get all the content you need, all of the email support that you need and for simply an investment of just under £500, or £497. In addition, if you join today, as I said, I promised I'll give you a one-hour one-on-one mentorship session that you can use at any time during your training together with myself and yourself on the phone or Skype to work directly on your property goals.
To take advantage of that, all you need to do is go to this link here, property-investment-courses. Hopefully, there'll be a link on this page as well that you're watching this video on that you can go directly to this page to make it a bit easier for you and gives you the chance to join the training straight away. If you wanted to join the training now, it will give you access to the content straight away as soon as you join up. I'll then be able to send you an email separately, privately, and we can arrange for your private one-on-one mentorship session.
Finally, just as a bit of recap, these are all the elements included for you. As we said as well at the beginning of the training, there was a couple of benefits, bonuses for coming and/or joining the training today. I got 3, 4 for you now.
Actually, before I go on to those, very quickly, I just want to show you some of the testimonials that we've had with people on the training course. There's a number of other testimonials on the "joining" page if you want to just have a look at those as well. This just gives you an insight on some of the people on there.
Also do back up your training with 2 very strong guarantees. You can try the training now for a 7-day trial for only £9.99. If you wanted to cancel it at any point to join that 7 days, it's only going to cost you £9.99 for the training. If you continue to have access training on that ongoing, then the payment option that you choose, we'll take out, obviously, the full payment after that 7-day trial if you wish to continue.
Finally, we also do a full 30-day money back guarantee. Even after the 7 days, if at any stage during the training you're not happy with the content, the way it's delivered, maybe your situation has just changed so it's not something that you want to do any more for any particular reason, whatever that reason is, simply contact me and I can provide you with the full money-back refund. There's no problems with that because, ultimately, my aim is for you to be successful and, once you're successful, then, hopefully, we can do deals together, and I can introduce you to other investors, other clients and, as I said, everybody wins. If you're not happy for any reason, let me know. I'll give you a full refund. I'm confident you will be happy. I'm confident you'll enjoy the training and be a success with it.
That being said, let me go on to the final bonus elements here. There's a link which you can copy-and-paste and put into your URL or your Web browser. It's got a password on here to the training, and that'd give you access to these bonuses. In addition to that, I'll also email you across the link as well so you'll have easy access to that in your email box. That might come through today or it might come through tomorrow for you, but I will email that across. Hopefully, you'll find that training helpful. It's been great to give you a bit of an insight in terms of some of the techniques and tactics that we use within our property business o ourselves and with our clients and also what's included in the property training for you. I hope to see you on the other side of the training as well.
Any questions after this, please feel free to email me, firstname.lastname@example.org. I'm more than happy to help. I'm looking forward to seeing you succeed. Take care!