I recently made a video which is a step-by-step guide on how to get your first property deal. It gives you all the information you need to find a property and profit from it,, even if you don’t have any money yourself. There are three options for finding your first property:
1. Find a property to buy yourself.
2. Find a property to package and sell.
3. Find a property to joint venture on.
If you are looking for option one, you will need your own money. For options two and three you don’t need money, just your time. If you really want to understand exactly what steps you need to take, I highly encourage you to watch the full video (above), but for a general overview you can read this blog post. If you want to see your friends and family succeed in property as well, please consider sharing this post on social media.
1. Find out what investors want
If you are buying a property for yourself, with your own money, you can skip this step. If you are going for option 2 or 3, please keep reading. You need to find out exactly what investors are looking for before you go out and look for a deal.
If you are looking for a property deal to package and sell, you need to know what buyers are looking for. You can do this by simply asking in Facebook property groups. I have a Facebook group called Property Investors with Samuel Leeds with almost 35K members. Feel free to join that one.
If you are wanting to do a joint venture, you need to find someone you personally know, like and trust and who has funds to invest in property. Ask them what kind of property deals they are looking for and if they would be willing to joint venture with you. Explain you will be willing to do all the work in finding and managing the property if they are willing to fund the purchase.
2. Negotiate an excellent price
Find a property on RightMove that has been on the market for a long time and meets the criteria of your investors. At the time of writing it is just before the new year, so this is a great time to find a deal. This is because sellers often have a deadline in their minds of selling their property by Christmas or new year. If they don’t make the sale, they will be more likely to consider lower offers.
The next step is to call the agent and ask them if the seller would be open to a cheeky offer. You want to see if they might be willing to accept 80% of the asking price. Call the agent and say “Is the property on X Street still on the market?” If the answer is yes, explain, “I am a property investor and am interested in buying this property; however, realistically I would only be able to offer about £X. Is it still worth booking a viewing?” If the seller is motivated, the estate agent may say it is worth giving it a go.
3. Close the deal
The last step is closing the deal. This will depend on which of the strategies you are working on. If you are buying for yourself, you will need to do your due diligence; view the property; and put in your offer.
If you are selling the deal, you can phone your investor and let them know you have a property that meets their requirements and have negotiated 20% off the asking price. When you get a sourcing fee from them, you can put an offer in on the property and pass it to them.
If you are doing a joint venture, you can take the property to your partner for consideration.
Congratulations, you have just done your first property deal!