So Here we are now in 2024.
HAPPY NEW YEAR to you !!
We are starting a brand new year. And what are we going to do with ourselves in this new year?
Well, this podcast is going to be a little bit about how we going to find some deals or the activity we need to do to find the deals.
Now weirdly enough, this time of year, rightly or wrongly, is an amazing time of year for you to start looking and finding those deals. What’s happened, effectively is, we’ve had a week, maybe two weeks off, where we spent that time with family and probably time that we haven’t spent that closely with people for the whole year. In some cases, even couples who have been together for the year that work really hard all of the year, maybe they go out and work 9 to 5 or maybe 8 to 6, come home, have some dinner, go the gym or a club, watch telly, go to bed. So they don’t really spend an awful lot of time with each other during the week, and then at weekends they might have other activities they do individually, or they might just try and catch up on some sleep after a hard week. They’ve now been thrown into a situation where they’re living together, and have been living together for two weeks, maybe in each other ‘s pocket and realising that perhaps this isn’t for them. Perhaps this isn’t the same person that they met all those years ago. Perhaps they want to move on and do something else and the other person hasn’t got the same vision, or thoughts or dreams. And so, rightly or wrongly, we find more properties coming on the market for sale as people want to split up and to move on and do their own things. That’s a sad situation. It’s also a situation that allows us as investors to go and pick up deals and find bargains that people may be selling because they want to sell quickly and they don’t necessarily need to have the top market value for that property.
So what do we need to be doing?
We need to be getting out there and viewing these properties now.
We can talk about the due diligence and the way we work out if it’s a good deal or not and all the factors involved in that an the formulas etc etc in another blog.
However, this one is just really about the activity that you need to be achieving and going and finding those deals.
Over the course of my time as a property investor over the last 20 years, I have found these figures to be pretty much spot on, and that is that if you can get out there and if you can view enough properties to get yourself at a level where you have. Between 20 and 30 live offers. So that means you’ve literally got offers in on deals on properties that haven’t sold yet for 20 to 30 of them then you will achieve and you will get at least one below market value property, possibly even a property that will give you all your money out once you refinance.
So there’s our target. Let’s take 20 is the lower end. Let’s say we need to get 20 offers on the table with agents or with vendors. Before we’re going to get a yes, everything else will probably be a no up until that point.
How do we get to that level?
Well. It’s very straightforward, it’s just about getting out there.
When I say getting out there I mean, It’s about shoe leather, It’s about walking the streets. It’s about doing all the hard work. A lot of people think they can go on the Internet, do all the research on the Internet, send emails, phone agents and it just works that way.
It does not work that way!!
The only way it works is for you to physically get out there and do the hard graft.
Actually working hard on this business that you want to create will give you results.
So go and view the properties now is the normal situation.
I would be aiming to try and look at 5 to 10.
Properties every week!!
That means if you’re doing. 5 properties viewing a week, you’re going to be getting up to 20 a month and that gives you the opportunity to put in 20 offers in a month.
Now you may not want to put 20 offers in offers on every single property that you view, and quite rightly so, because some of those properties just might not be in the right areas, they might not feel great, they might not be brilliant, even though the numbers might work.
You might not necessarily have to put offers in all the viewings you do.
So let’s say half of your viewings would be your office. So if you only did 20 viewings in a month and you did half of those offers, you would have 10 offers live offers. So ideally, if you can get 10 viewings a week, that gives you 40 viewings a month? Then you’re talking about 20 potential offers or more on the table.
That also means you’re going to get an offer accepted. If you can do that in your first month, by the time you’re hitting that target and you’re doing those ten a week in your second month, one of those offers on the table will come off. And this is a great time of year to start doing that.
The beginning of the year, January, is a very, very busy period for agents. All these properties coming on the market for whatever reason, it’s not just people splitting up.
There’s also the sadness of people passing away or parents having to go into care. And the homes are coming on the market for sale.
Now, I am definitely not suggesting that you take advantage of any of these people.
I am suggesting that you do your figures, you work out what the property is worth to you and you’re open and your honest and you tell the vendor or the agent this is what I’m prepared to offer or this is what I can pay for this property as I am in business and I do this for a living.
You give them your offer based on that principle.
Now if they say no, then they say no.
You do not, then try and hassle them and trying to convince them into taking the offer from you, It is a matter of time. If your offer is around about the right mark anyway, or they’re happy to accept it. They will take it eventually. If it’s not, if it’s way off the mark then they won’t take it.
We’ll get an offer accepted that way or from another property.
So,
once you’ve chosen you area,
once you’ve done your due diligence,
once you’ve done your facts and figures and work out whether you can offer a certain amount of what that amount is, how much cash flow it’s going to create you, how much equity you’re automatically going to have in the property when you buy it, how much work you need to do to it, what your costs are, etc, etc.
Then you can put your offers in on every property that you feel you’d like to put an offer in on, and that’s normally about half the number of properties that you view.
So get out there!!
Go do your viewings!!
Go and do your offers!!
Get you number of offers up to that 20 offers on the table and then you’ll start to see things really happen.