I have a pretty heavy work load to say the least – teaching, investing and other ventures I am involved in and just lately there has been a very heavy load where I have had to bite the bullet and actually ask for help in reducing my workload and the need to work smarter but still achieve my goals.
I did what I very rarely do and that is ask for help – yes you will always need help and people are always willing to help when you need and don’t be afraid to ask.
I turned to my wife and asked her if she could help me find new property deals and talk to estate agents. Well for all of you who don’t know my wife she has a comfort zone that she is very comfortable with and this was a big punt on my part.
To my surprise her answer was ‘sure I can do that but you need to show me how and once you have I have full control’.
Right, let’s get started. I showed her my system of finding properties in micro areas around where we live. I gave all the areas and showed her the strategies to use in each one. I then told her what she needs to say to estate agents and what to watch out for. This included the prices they will share with her; both buy prices and sell prices. All are very different to what is reality.
We also discussed negotiating techniques and when to close your mouth and say nothing more. Then there was the discussion on initial excitement and how she would be feeling ecstatic about just making her first offer – and the many counter offers to follow.
In short she was ready to go within a couple of days armed with the minimum knowledge needed to find a deal, make an offer and negotiate based on her exit strategy and what she needed to make at least a £20,000 profit.
Vicky asked me to look at a property she had found on Rightmove. It needed some work (total refurb) and was listed at £135,000. We checked the deal calculator which Glenn Armstrong created and did some research on rightmove etc. for sold prices and similar properties for sale in the same area. Turns out we needed to get the property for 125,000 to make our 20k.
Vicky heads off to the agent to have a chat and view the property.
Offer of 95k is made by Vicky. It is quickly rejected by the vendor who insists she will not go below 125k.
Great. We just got the vendor down by 10k in one offer. What we did next is put together a good story on why we could not pay 125k for the property – we based this on real values from builders and research in other areas. We then presented this back to the agent with an offer of 105k.
BOOM! Rejected again. The vendor then said that she would go to 115k but would not go below this. We counted with 112,500. A nice number that didn’t seem to rounded up or down.
Vendor rejects again. She will go to 114k best and final.
We sit and let the waters settle. Agent tries to get us to cripple by telling us there was a load of interest. Well we spoke to the neighbours and they have not seen anyone else viewing. Hence the vendor now dropping from 135k to 114k. That’s 21k in 2 days of negotiating.
No calls from the agent. Mmmm vendor really has made her final counter. Off we go to the property. We speak to the neighbour who has the same property but a small extension added and of course fully refurbished. Vicky does all the talking.
‘How much did you pay for your property?’
‘Oh we paid 236k in March (2014) but the funny thing is the valuation came back at 250k’
Vicky then proceeds to send me a small smirk 🙂
We chat some more and decide that we will now accept the kind offer from the vendor to buy at 114k. Vicky calls the agent and within 2 minutes she has an accepted offer.
After costs she looks to profit anywhere between a minimum of 40k based on a sell price of 200k and upwards to 250k could see a profit of 90k on her first deal.
The deal had all been sourced by her, negotiated with agents and the vendor, builders booked in for final quotes.
Well done Vicky and thank you for helping me reduce my work load and achieve our goals together.
Oh did I mention we have two children under 2 that she also has to manage 🙂
We will be posting the final stages and photos of the refurb as we move along and share the final price we achieve with the profits over the next 6 months.
Vicky has also managed to find 4 other deals in this time that we are also working on which include a BOGOF (buy one get one free) strategy.
If you too want to get started in property investing and learn what Vicky has learnt in the past week book yourself onto our FREE one day course for new investors by going to this link http://www.glennarmstrong.com/new-investors/ and download your free report here http://www.thepropertyinvestorcompany.co.uk/property-investor-newbies/
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