"Its midday and like every other day this week I've no reason to get out of bed! What the heck is going on? Why do i feel so annoyed with life? What went wrong? Why does everyone else seem to be thriving yet I'm sat at home with no purpose, drive or interest? Little did i know that once i changed my mindset, stopped being so negative and seeked the help i needed then i would experience the best year of my life personally and financially. A year like no other which would change my life forever. This book is about the journey which allowed me to acquire a small property portfolio, start a property sourcing business and becoming a much happier, more positive and confident person.What included: The exact steps i took when i was starting out with my exact strategy for acquiring property with little of my own money and how i made £26k in 8 weeks Strategies for all budgets, My Unique 7 step by step system to becoming a deal sourcer, My 8 step process to finding investors My 10 step action plan to get you started
the land registry have launched an online service where for £3 anyone may purchase a copy of the title document for the property that gives the name and address of the owners of any property in the UK
deal sourcing: 1) What property redress scheme do you belong to? 2) What is your redress scheme membership number? 3) Who provides your insurance cover and how much does this cover? Ask to see the certificate. 4) Are they registered for data protection with the Information Commissioner’s Office (ICO)? 5) What is their Anti Money Laundering license number?
Step 1 – Tell everyone what you do. Don’t be ashamed or quiet about it. Shout around and ensure everyone knows what you are doing. Step 2 – Build your online presence using Facebook, LinkedIn, Instagram and YouTube. Step 3 – I record myself regularly and post to YouTube and Facebook, letting people know what I’m viewing and what deals might be coming up. Step 4 – Have a website created to capture leads and keep investors up to date. You may have to give something away in exchange for details. I, for instance, give away one of my basic Return On Investment (ROI) spreadsheets as a freebie. Step 5 – Network, attend as many events as you can. Some of you will like this and others will hate this but get over it. Jump out of your comfort zone and just do it.
Be prepared to have a 20 second introduction to yourself. Many smaller networking events with typically less than 50 guests.
“Evening, my name is Alasdair and I own Better Sourced Ltd. We specialise in matching up tired landlords looking to sell off some of their property with cash rich investors who are looking to buy right now. If you would like a free appraisal then let’s chat in the break. Thank you”.
I contact my investors every Tuesday at 9am without fail - and those investors that are on my VIP investors list receive an additional email on Monday at 2pm.
You should become a bit of networking ninja and try to meet as many people at these events as possible. I take my tablet with me and have my website www.bettersourcedltd.co.uk on the screen so that once I’ve chatted with someone instead of taking their cards, I just get them to sign up to my mailing list.
You will need; • A Ltd Company (you can operate as a sole trader but this is not advisable) • To be a registered member of a property redress scheme; there are currently two schemes available as of 2020; these are the Property Ombudsman and the Property Redress Scheme. • Insurance • Data Protection License • Anti-money Laundering Registration
Customer Relationship Management (CRM) systems for client interactions, virtual assistants to take calls, to do paperwork, for finding leads, addresses etc.
You will need to use SIC code 68310 when registering your company.
I’d recommend each strategy has its own Ltd company set up with their own bank accounts, insurance cover etc.
Vehicle Insurance. If you are using a vehicle to assist with viewings then you will need to have business insurance in place. It’s worth keeping a vehicle record to monitor when you use the vehicle for business mileage.
Employers Liability Insurance If applicable, you will need an employer’s liability policy to cover for any accidents, injuries or illness as a result of the employer’s work. My brokerage firm is: Duncan Clark Insurance Brokers, and my broker is Richard O’Neill. 01727 852299 piinsurance@dcib.co.uk
3. www.tpos.co.uk Membership costs £225 plus vat per annum plus a £60 joint fee.
6. Bank Accounts I currently use Nat-West bank who have been absolutely fine.
I would only have my business account with a well-known reputable bank such as: NatWest, HSBC, Barclays or Lloyds.
you will require a client account. A client account is an individual account that is used to hold funds which currently do not belong to the business
The process of becoming compliant is fairly straightforward - albeit time consuming. You could easily do the work in a day however waiting for approvals can take up to 12 weeks (mainly for AML).
There was no hard selling or pushy sales, just this is the deal, what do you want to know? How do you want to proceed?
I explained the deal, talked him through the layout, condition, refurbishment and market for the property. I explained we have a team ready to do the work and he could be completely ‘hands-off’ if that what he preferred. I explained why we charge a fee, how much we charged and told him all about our due diligence process, return on investment calculations and viewing process. I also reassured him of our terms and conditions and our refund policies. I explained as per our terms, that he would have a period of time to carry out all his own due diligence and if he felt the deal wasn’t for him, then he could simply request a refund and walk away.
I brought a copy of the head of terms with me, which is basically a document that lays out what we had agreed beforehand. We both signed this and I sent these to the solicitors so they could prepare the legal documentation. Three months later, the contracts were all complete and I arranged to collect the keys.
Pg 77 single let
In article 4 areas, local authorities have powers to prevent investors converting a single dwelling residential home (C3) into an HMO property (C4).
Areas currently with article 4 directives include Leeds, Liverpool, Birmingham, Wolverhampton and Lincoln.
• Fire Doors • Fire Alarms • Fire Blankets / Extinguishers • Signage • Emergency Lighting • Smoke Detectors • Fire Boarding • Sound Proofing
Pg 80 HMO
Buy Refurbish Refinance Rent / Sell
Things to look for; • Tired Dilapidated Property, Old Carpets, Gas Fires, no Central Heating, Dated Kitchens and Bathrooms • Structural Issues - Subsidence, Cracking, Roof Issues • Damp Issues • Potential to Extend or Add Rooms
This strategy also favours investor financing as the money can be recycled fairly quickly as you no longer have to wait six months to refinance.
Pg 84 bridging finance
Pg 90 R2R
mouseprice.com
Pg 95 bridging finance
I borrowed £25,000 from an overseas investor who I’ve assisted in purchasing property in the UK through my sourcing business.
I did this in the form of an investor pack which details all of particulars of the deal and what the money is being used for.
The agreement was that I would borrow the money which would be paid to my limited company and my limited company would repay the money 6 months later with interest payable at 1% per month. I borrowed £25,000 and paid back £26,500. The total cost for me was £1,500 and I used this money to fund the deposit for a property which I refurbished and refinanced.
Always use a legal contract if you choose to use this method of borrowing and ensure you and the lender are fully aware of the risks involved.
here are some reasons why a vendor may allow a below market value offer purchase price: • Facing Repossession • Probate Sale • Separation • Needs Refurbishment • Moving Abroad • No outstanding Mortgage
A great place to look for these deals, particularly those that are direct vendor is on Gumtree;
“If I can guarantee you a sale with no delays, what’s the lowest price you will sell it for?”
I would look for areas that have a good infrastructure, universities, good job prospects, good median income and high employment rates.
stay over for a day or so and see what the area is like both day and night.
I always go and meet some estate and letting agents to ask their opinion on the area. Here are some pointer questions to be asking: • Can you tell me the areas that are working well and the areas that are simply no-go areas? • What is the average rental income for (x) street? • What type of tenants are we likely to get? • Average rental income? • How many properties do you currently manage? • What is your delinquency rate of tenants in arrears?
you’ll use Rightmove or Zoopla for your property sourcing.
due diligence before you book a viewing such as; • General Condition • Idea of Refurbishment Required • Condition of Exterior / Roof (use Google street view) • Location / Amenities / Rentals Demand / Supply • Type of Tenants • Average Rate for the Area • Flood Risk / Known Local Ground Issues • Planning Restrictions • Rules and Regulations • Valuation and Current Comparable Properties Nearby
Here’s a list of the basic checks; • Exterior condition - check for leaning, cracks, roof line, guttering, windows, doors, brick work inconsistencies. • Interior condition - check for damp, peeling, bulging walls, leakage, odours, subsidence, uneven floors • Bathroom - age and condition, water pressure, wall tiling, leakages, drainage • Kitchen - Age and condition, water pressure, boiler condition and paperwork / service sticker, pipe work condition, drainage, work surfaces, damp under sink • Electrical System - Check for any service updates, usually on a sticker in the fuse box, New or old fuse box, condition of wiring - is it tidy or messy? General condition of wall sockets and light switches • Overall Property Condition - decoration, carpets, floors, windows, skirting boards, doors and door linings and stairs
When I first got involved in property, I set myself some goals. • 1 x HMO Purchase • 1 x Lease Option Property • Raise £30k from an Investor • Package and sell 12 deals to Investors • Build an Investors List of 100 • Grow in Confidence • Immerse Myself in Property
Straightforward and to the point! A great complement to the free crash course describe in the book. Just the the book I needed to get on the right track and breakdown a few terms taught in the course.
Awesome must read book.. I meet him at property investing crash course and didn't know he went through so much in life as it didn't seem like it when you first meet him.
After reading his book I realised how he got too where he is now, and he deserves it. This book tells you what he has faced in life and and did whatever it takes give a blessed life to himself and his family. It is truely said " Every Sucessfull Man Was Once A Failure ".
Thank you for sharing your wisdom and inspiring me to take action and ignore the voices in my head. I found this statement very hilarious in the book which made me laugh out loud with regards to shares " Shares slowly but steadily climbs up the stairs and then jump out of the window" Hahaha...
Interesting, useful and inspiring book. The main effect it made on me was the desire to act. It could also be used as a reference guide to setting up your sourcing business correctly and in a compliant way. Thank you Alasdair! I've also started listening to your property investment podcast and really enjoying it. I would recommend this book to anyone starting their journey in property investing especially if you struggle with doubt and searching for purpose. The chapter on Uganda trip was particularly interesting and touching.
Recommended to beginners and those already advanced in their property investment journey. The book provides guidance to setting up property sourcing business
I really like that in this book are written precise steps you should take to become compliant, because there is no other place on the internet that has it. Thank you Alasdair. It was a pleasure to read!
Amazing book just shows how important educating yourself and implementing is. Cant wait to get started in property and see where this journey takes me.