Find UK Properties This Week!

(upbeat music) Welcome to the Property Magic Podcast. My name is Simon Zucchi, and in this podcast, I'm gonna deep dive into the property investing strategies and invest a mindset for my book Property Magic. I will also share real estate investing hints, tips and tricks, which I normally only share on my property mastermind mentorship. - Hello and welcome to this week's episode of the Property Magic Podcast, in which I'm gonna explain a very simple process you can use to find a discounted property deal in your area this coming week. Now, December's one of those strange times of year, where people get very busy with social life and other things, and they tend to put things like property investing on the side. So what that means is, you don't actually have much competition right now as your listening to this podcast, because most people are taking time off. In fact, maybe a lot of people are not listening to their normal podcast because they're doing other things. So if you're listening or watching this congratulations because you are an action taker, and if you implement what I'm suggesting you straight away, a guarantee you will find some really great deals in your area that may be saving you tens of thousands of pounds off the normal purchase price. You're notified and you can make maximum benefit of the information I'm sharing at the time I'm sharing, which will be the most appropriate time to use it. So how can you find a great deal this next week? Well, first of all, remember, we always want to look for motivated sellers. These are people for whom the speed and certainty of the sale is more important maybe than the price they're going to get. So they might be flexible on the price they receive or maybe the terms, which is when they actually received the money. Now look, most sellers are not motivated. They want to get the full price and they're prepared to wait for it. And they don't want to do any creative deals. However, a small proportion of sellers maybe about 5% might be motivated. They want to get rid of this property. It seems like a problem to them. It feels like a lead weight around their neck. And as long as there's a problem that we can fix and not one we're going to inherit, we can take that property on, fix the problem and have a really great cash flowing asset. There are things like maybe someone's got a property where they don't have enough spare cash flow to fix it. Maybe some tenants are moved out and they've not caused any malicious damage but maybe they've been there a long time and it just needs a 10,000 pound refurb for a brand new kitchen, new carpets, painting, decorating. And that landlord hasn't read property magic. They haven't read the five Gordon rules and number five, which is have a cash buff or some money set aside. So when you need to, you can fix the properties and get them ready to rent again. So you're going to have a landlord that's easily rented this property. They just don't have the money available to fix the property. And I think, you know what? Maybe I'm going to sell that property or maybe someone's in financial difficulties or health issues. So all sorts of reasons where someone might be motivated. And if we can find those people and we can find out what the true problem is by asking great questions, then we can potentially help them. So how do we find these people in the first place? Given that most sellers are not going to be motivated. Well, you can use some great software like Property Filter, which we pay for all our mastermind and all people doing coaches, get to use this incredible software, which will actually filter out the non-motivated people and just have potentially motivated people for you. Now, the way they do that, and if you don't have the software, here's what you can do, you can look for people where maybe the sale has fallen through or maybe where the property, the price has been reduced or maybe they're listed with multiple agents to try and sell that property. All of these assigns and indicators and clues that this seller might be motivated. Another clue is that fact that if the property is built on the market a very long time. So if you're just doing a simple zoopler or right move search, when you look at all the listed properties, you can look at the oldest one first. It has been on the market a long time. Either that's because maybe the price is too high and people have not been making offers. Now, at some point, the owner will realize it's too much and they'll have to come down. But the fact not many people have been making offers, if they want to sell, they're going to be coming more and more motivated. Or maybe the property has sold, but the sales fallen through once or even several times. And again, that seller's going to be coming really frustrated. They can't find that somebody's actually going to buy the property and do what they say they're going to do. So if you can give them that confidence and certainty, there's a good chance you can secure a really good deal. So look for the properties first of all that have been listed for a very long time. Now, obviously, when you do your search on right move the zoopler, you need to put a few criteria in there. You need to put in a usually a maximum price you're prepared to go to. And that's because you're looking at a certain price range property. And also, you might put a number of bedrooms in. Now, what you don't want to do is get hundreds and hundreds of properties coming up because you'll start scrolling through, you won't know what to look for, and you just get overwhelmed. Ideally, I think you want probably 40 to 60 properties. Then you can look through, and I'm going to tell you exactly what you should be looking for. So if you say maybe I want properties that are four bedrooms or more, and there's a certain price limit, that will cut down the number of properties available. Now, if you're getting too many, you could lower the price. If you're not getting enough, you could increase the price. Until you've got about 40 or 60 properties. Then you start looking through, and you're looking at certain things. If you could see the pictures, first of all, do you see duplicate pictures? Are you the same property being listed with separate agents? That's a good sign they're motivated. Look at the picture. Is the picture out of season? For example, a time and coordinates we're in the middle of winter. And if you've got a picture of a garden full bloom, that's probably been on the market for at least six months. So maybe they might be getting motivated. Also, if it looks like the property is empty, or damage needs work doing to it, that might put lots of people off. Again, we should be speaking to that owner. So certain things we can get from the pictures. Then we can read the description. It might say things like this price has been reduced, or it's price to sell, or no upward chain, which means there's probably an investor selling it. All of these are clues that maybe the seller might be more motivated. And finally, we look at the agent. If there's an agent, there's an out of town agent. So if a property in Birmingham being sold by a company in Manchester, well, maybe they don't know the market. Maybe they've mispriced it. Maybe they're not getting many inquiries. And so again, we want to reach out to them. So when we identify potential opportunities, that's the first step. The next step is we need to call the agent. Now, that might sound obvious, but so many people are reluctant to call agent. What do I say? What if I don't have the money to move forward? What if they want to see proof of funds, et cetera? Well, if you just call the agent and say, look, I'm really interested in this particular property, can you tell me all about it? And they'll probably tell you what's just listed on the website anyway. But then if it sounds of interest, arrange the viewing. Now, whether you intend to buy or not, when you're first investing in property, I think you can't do enough viewings because you'll gain huge experience on what different properties look like. You'll spot the ones that are better. You'll also get the opportunity to potentially meet sellers and start talking to them, talking to the agent is all good practice. So actually get yourself on some viewings. Now, when it comes to making offers, when I arrive at the property, I'll always say, look, I am going to make an offer on this property, but not today. That takes pressure of you, takes pressure of the agent, the seller, et cetera. You can just look around, ask some great questions, build some rapport and work out what you want to do. Now, the next step is I think you should make an offer on every single property you view. Do you want to buy every property? Of course you don't want to buy every property, but you make an offer such that you know they're going to reject the offer. Now, that sound a bit, might sound a bit counter-intuitive. Surely we want to make an offer get accepted. No, we want to make an offer. We want them to reject the offer because if they accept your offer, it means you have paid too much. So we make an offer, knowing it's going to get accepted. The one of the ways we can do that, work out what price you would be prepared to pay for this property and then just take off 10%. So if you're prepared to pay 200, take off 20,000 pounds in this case and offer 180. So if you get it for 180, fantastic, you've just saved yourself a couple of tens of thousands of pounds, but they'll probably reject it to which you go back to them and say, okay, that didn't work, what would work for you. Now, rather than you making a new offer, you want them to counter-offer to you. Whatever they offer, or they suggest they would accept, is the highest you're ever going to pay and hopefully you're going to go shade down from that point. So that in itself might save you 10,000 pounds on the price. But unless you are viewing properties and making offers and property, you're not going to be building your property portfolio. And I know that sounds obvious, but so many people, they spend hours looking for properties on right-move or even they have property filter which saves them a huge amount of time. And then they just don't make the court it, 'cause they're worried. Look, remember, the agent, the seller, they need to sell their property. You don't need to buy this property. So there's no problem with you inquiring, having a look around, seeing what you think, building up your confidence, building your knowledge, and then the more experience you are, the more easy it will just spot a great deal. Now, of course, you need to know what is a great deal for you. You've got to be able to work out what's the cash flow, what's the return on investment. And the return on investment, I've covered it in previous episodes of the podcast, is we look at the annual profit, divided by the initial investment. I'll be multiplied that by 100 to give it a percentage. To hire the return on investment, the better the deal. So to produce some context, a normal single-et property might be about five to seven percent ROI. In London, it might be two to three percent. Up north, you might just about get double-digit growth. So, up north, you might just about get double-digit ROI, which, by the way, is really, really good for a single-et property. If you're looking at a more advanced strategy, such as an HMO, a house of multiple occupations, you should be getting 15% for a managed HMO, 20% if you're managing yourself. If you're doing purchase this option, I don't want to do an option. I said again, it's 50% ROI. If you're doing a rent-to-rent deal, you should be getting at least 100% ROI, which means you're making back all the money you put in within the first year. Otherwise, I don't think it's a good deal because you're giving the property back to the owner in three to five years. So you need to work out what is a good ROI for you. Now, for using your own money, you'll have a lower level than if you're using someone else's money, because if you use someone else's money, you need to factor in the return you have to give to them. And then also the return you want to make yourself. So it's really important to understand what is the good criteria for you? So when you spot a good deal, you can move quickly. Because if you don't move quickly, when you see a good deal, guess what? Someone else will come in and take that deal from you. Right now, as I record this, we're in the buyer's market and we're in December. When most people are sitting back, relaxing, not taking much interesting property at all, but guess what, there are still people who need to sell. And I'm gonna give you a line that you can use when speaking to agents or sellers. And that is this. Assuming you view the property, you like the property you make and offer, put this with your offer. So look, here's my offer. And it might be a bit lower than the owner wants. However, I would like to get a deal agreed so the owner can sit back, relax, and enjoy Christmas, knowing this property is sold. Now, of course, you're not gonna get to complete before Christmas unless maybe you're doing an option, you could actually get that done in just a few weeks. But if you're buying, property can take several months. But just getting that sale agreed with someone who they know is gonna buy the property and not change their mind, gives massive certainty to the seller and they can sit back, relax, and enjoy the festive period. And just using that, you might get a fantastic deal this next week. So my question is, are you up for it? Are you gonna get out there? You're gonna take action. And I would love to hear from you if you actually manage to secure your next deal in the next week. If you've enjoyed listening to this episode of the podcast and the other 300 plus episode we have, I'd really appreciate it if you could leave me a five-star review, wherever you happen to download the podcast from, just that other people can hear about the podcast and also benefit. I would really appreciate that. And rather than just saying five stars, I wish really good. Say specifically, what have you got out of the podcast? What have you learned? 'Cause I do go and read reviews and I get a real massive buzz when I know we've helped people on their property journey. So please, if you can give me a five-star review, tell us why you liked it. I'd really appreciate that. Until next time, invest through knowledge, invest with skill. - Thanks for listening to the Property Magic podcast. To get this week's show notes, please visit www.popptimagicbook.co.uk for slash podcast. You can contact me via LinkedIn. You can follow me on social media and I highly recommend you subscribe to my YouTube channel to watch loads of valuable property trading for free. All of the details are available in the show notes. Until next time, invest with knowledge, invest with skill.