🗺️ Property Investing from your Laptop with Low Money Down | Deal Finder's Corner EP28 w/ Mark Shaw

[Music] so welcome to the deal final corner so this is your weekly property talk show brought to you by property filter hosted by myself gon black your favorite Frenchman the CEO and co-founder at property filter is the UK's High highest rated platform to find deals and we are on a mission to empower our property investor and deal sourcer members to find another thousand deals this year Again thanks to the property filter blueprint and the purpose with your deal finder corner is to give you more and the best of the available resources by inviting esper guest

we share with you the latest and most current strategies tactics and secrets about what actually works right now in terms of finding and making deals and the reality of systemizing and running a high performance business in property so it really is my pleasure to introduce to You my very good friend on today's deal final Corner Mark show so Mark is the lifestyle investor himself he's been investing uh from his laptop using Creative Solutions and in the last year alone he did 50 deals working two hours a day with no or little of his own money

he's been investing in property since 1988 built operate and excited uh estate and liting agencies is built since 20 2003 it's got a wealth of knowledge and firstand experience gained from working In real markets dealing with agents vendors landlord buyers contractor investors Mark is a master of goal setting weekly and daily routine for execution he likes a challenge from working 100,000 steps in one day for charity to dropping below 5% body fat in his body transformation all the way to cracking nuts with certain body parts so hopefully he'll tell us more about that later today

uh Mark is retired financially independent and runs a Private lifestyle investor Mastermind program for which he opened the doors just twice a year so what you can expect from today's episode so Prov and blueprints for finding identifying and agreeing lease options and delayed completions raising private finance and and the sary promises to leave you with a very very different perspective on not to invest in property we'll have some time for Q&A at the end and I'm very much looking forward to hearing what Marx has got to share with us today so please give a massive

property filter virtual welcome to Mr Mark show all right well thanks all wavy people um right so do you want me to just share the screen at this point yeah whatever whatever FL you know works for you mark you know the the floor is all yours yeah right so as um as he's alluded to I'm a self-proclaimed lifestyle investor um what I want everybody to do at the Beginning of this session is is ask yourself the question and it all comes down to do you like the idea of investing in property from your laptop um

your main focus should really be low money down deals um and you should get to the point where you're really comfortable raising private Finance in an ethical way but most of all what should be appealing to you is that all your communication should be by email we kind of don't want to be Bothering with the phone we certain don't want to be having direct avender conversations so if this all appeals to you you're going to find this uh talk shall we say enlightening because this is exactly how I invest this is exactly how I've invested

for years now so again it's been alluded to so I'm not really going to go through this again but the importance of the fact that I've actually um started and run my own estate and lessons agencies is that This isn't just something that I've learned on the course and I'm re regurg it to people this is where I've I've been to courses and I've grabbed a concept such as lease options back in 2012 and then what I've done is I've actually crafted it into if you could say an art form and it is an art

form when we're we're negotiating with people we know roughly exactly where the negotiations are going to end before we even start negotiating on a property we Know what figure that we're going to take them to and this has all come from just being on the front line you know we're talking well I've been talking with vendors um with the Lettin agents with contractors I've Source properties we've refurbished but most importantly I know how estate agents and leton agencies um how they think so one of the big problems you have with people is that I've been

to the estate agent and there's no deals um the letin ageny that None of their landlords want to sell that's because you're not actually seeing it and understanding it from the agent's point of view so one of the main benefits in this blue I'm going to share is that it's actually being put together educating agents in a way that they understand and they will actually work with you so when they're sending you a deal they're not sending you a property they're sending you the vendor's problem what the mortgage payments are how much Is outstanding on

the mortgage how much they need from the property why they need that so you're getting a full scenario of facts and and as I said I'm retired and financially free now um I've bought and sold lots and lots of properties but my current portfolio exists of over 80 properties and another benefit of being a lifestyle investors that we systemize everything so I actually self-manage those properties now and they take on average between 20 And 30 minutes a week of my time so what I'm going to be doing today is I'm going to be sharing you

a proven blueprint um and I use this in all my investing uh my current port folio includes residential property commercial hmos land um blocks of flats and more recently a hotel all these have been acquired through low money down strategies okay if I've raised investor Finance I've raised investor Finance um not because I need it but because we We've kind of got to that level now where we we don't go looking for private Finance which I'll cover later but all the finance all the private Finance investors have actually referred to us so it's really a

case of now not turning them away and and just pay paying them a fixed rate of return so although we use private Finance we don't really need to but I'm going to show you a very systemized way to actually build your network of private Investors I'm still an active investor um and I just use this blueprint I don't deviate from it my most recent completions um were just before Christmas it was a block of flats which I'll touch on in a second and three new build properties so this is isn't something I'm trying to teach

now because I need to teach it it's it's I'm still predominantly an investor it's just that this is a spin-off where I can sort of Coach others to invest the way That I do which is through the investor Mastermind program so these are the two that um I completed on just before Christmas now this one on the left is the block of flats this came from a leton agency and all it was is that we'd educated this particular agent on what deals that we want and when to contact us so one of the things we

teach is that you want to work with leton agents that don't have a sales department so when they get a Desktop valuation request from a landlord or the um landlord phones them up and says um I'm just go I'm thinking of selling the property I'm going to have an estate agent come and collect keys or can you arrange access with the tenant the leton agent knows that that's the trigger point now to start promoting my services okay there's lots of benefits for the landlords you've not got to pay state agency fees you've not got to

Disrupt your tenants some tenants will actually move out as soon as they know that you want to sell the property so this block of flats and it's the entire block came to me through a lons agency because it was off Market I got a substantial discount because it's fully tented and fully compliant I've literally had to do nothing with this property at all so that's a really easy addition um to slip into your portfolio through a Leton agency and as it happened this was actually owned by social housing provider so we we had to do

a lease option on one of the flats just because they've got a long-term tenant so we've not bought five flats we bought six Flats but one through a lease option and that came through a Lettin agency and then on the right hand side here you've got three new build properties now the traditional route might be you buy a plot of land you find an architect you Employer Builder the way that we invest is that this developer borrowed the funds off me paying me 15% per anom that financed the build and because I actually loan them

the money I got it at a substantial discount so at the end of the build the I use Finance on this one to buy the properties the properties um the purchase price pays back the Builder I get the substantial discount but then the Builder pays me all my interest at 15% and these will actually go out to Tenant buyers because they're outside of my area so what exactly is um a lifestyle investor most of you will be aware of what I call the traditional property investing move so you're going on um right move or property

filter you're doing your own due diligence you're booking in lots of appointments with agents probably doing lots of viewings evenings weekends included um then you tend to put the offers forward and you You tend to get a lot of um rejections so you tend to go back and then you put some counter offers in if you do get something accepted the chances are that you're going to have to raise some sort of finance a 25% deposit and then after four to six months you might get the set of keys to your investment property which is

all well and good if you've got the time in the money and even the knoow but it's a very slow way to scale your portfolio you know you're Buying one or two properties at a time or you might get a block of flats but it's very very slow now I want you to compare this with how I invest as a lifestyle investor and I value my time and resources more than anything else so as you go through some of these case studies the first thing you're going to notice that they've probably taken about half a

day a day of my time and that's filling out paperwork the majority of Them have not visited because I value my time F so we don't go and visit we don't go and view properties until the offer's been accepted because we don't want to waste anybody's time and then if the offer is accepted we will go straight round and view the property or send somebody because the agent really wants to tip their box we communicate only by email because most email communication happens in the evenings when the vendors can sit you Know at home discussing

your email and sending you the questions we very rarely take out mortgages we either use private Finance or we take over other people's mortgages through delayed completions so we generally complete on Prop well exchange on properties within four to six weeks not four to six months so if you can think about it from the vendor point of view or the estate agents point of view where they get paid On Exchange it's a big incentive for them to work with us and when we're educated agents when I was an estate agent this this is what used

to happen somebody would come in and say do you have any Investment Properties or could you send me what you've got that you know and then they would give um an example of what they're looking for particularly you've got to be very very specific with an estate Agent or a lens agency so the leton agent the the um valuation that came from the letin agency the property came from the letin agents they were clearly told if you have any landlord NS that contact you for a desktop valuation or because they want to arrange access for

an estate agent can you contact me at that point I will have a look through the property details and if I'm interested would you send this email through to the landlord so I'm actually Putting the landlord template together for them to send to the landlord because if you ask an agent to do something like that you just cause them extra work plus it's not work that they're accustomed to so it would just get moved to once side so you're literally putting the email to them for them to forward on so it's now become very very

convenient an assisted sale which um I've been told that most people here understand terms like assisted sales and Lease options an assisted sale um think of how you would actually explain that to an estate agent so an estate an assisted sale is basically where you agree a price you go and carry out the refurbishment and then you put the house on the the market to sell but you've never bought it so basically you've paid for the cost of the refurbishment um but you keep anything above the original purchase price which is the most efficient way

to flip a Property so think of it from the estate agent point of view now this is all done by email but this is kind of how a conversation would go so Mr estate agent I understand what the situation here is you've got a large property and it's not going to achieve the price that the vendor wants because it needs too much work it needs a refurbishment however I understand why you've put it on at that price because if you didn't they would have gone with A competitor now you know that this Pro property is

not going to sell at that price and over the next 12 to 13 weeks the feedback you're going to get is it needs too much work or you're going to get offers that are too low and that's going to upset your vendor so at some point in the next 13 weeks you're going to lose this property to a competitor so you've explained to an estate agent from their point of view exactly what the Issue is so then you say but I'm in a position where I can offer your vendor close to the asking price a

price that she would accept and what I'm going to do I'm going to refurbish the property and then I'm going to put it on the market to sell with yourselves and I think we can agree that if I do all this work you put new kitchen in put a new bathroom in that she will achieve the price she wants he completely understand this and then I've carried out the Refurbishment so I'm going to keep everything above that but you get paid on Exchange and you get a second fee when you sell it for me in

seven eight nine months time so he's fully understood the concept how it works okay the next thing you do you put the email together to send to the agent and the agent sends it on to the vendor but this time he's promoting you now because he understands how it's going to work but more importantly he's now got a way that He can get the price that his client's happy with now the way that this will actually work when you started educating the agents is that at the time they get their valuation sheet on their desk

they'll think that's overpriced they'll read the details and then they'll understand that it needs some work so they're already thinking of you at that point by the time they get to the property and realize this isn't going to sell at this price because it's dated They're already promoting you or have you in mind to do an assisted sale on this property does that make sense a few nods okay so it's all to do with how you educate agents and then all Communications by email which we'll touch on later so to give you um a snapshot

of of a lifestyle invested method um I like to call it is this is a 10-bedroom hotel um it's got a little flat behind it now this is on an existing rent to rent Agreement so you can use this to actually convert any rent to rent agreements into lease options and at this point the vendor is not receiving any income because the operator has not been paying any rent it's just coming out of covid and this was actually referred to me by a mastermind member because they thought a hotel was perhaps too big for them

they didn't know how to operate a hotel and how' you pay for something like this but What we've done is we joint vented on this because it was quite early on in in The Mastermind and it's a case of it's not how much money you've got got it's how you structure the deal so the terms agreed on this it was a three-year lease purchase option or lease option I prefer to call them £23,000 option consideration which is the deposit so that's the capital that we've put into this deal and we're making £3,000 a month Payments

to the landlord but they're deductible so what actually this equates to is £108,000 interest free loan and the reason that came about is that the first question we asked is well what rent should you have been receiving on the rent to rent £3,000 okay we're happy to pay £3,000 um okay yeah fair enough but that's what the other guy said hello okay but what if we what if we actually pay you um a 5% deposit to show how Committed we are which is where the option consideration came from so you can see how that was

put together we literally just mirrored the rent to rent but in a way that we could actually buy this property within a week we'd agreed terms with an sa operator to take this off our hands on a three-year contract and their paying is £ 7,300 a month we've had no work to do we've got no operational cost at all and because It's in an article 4 area once the operator was running it as a hotel we got planning permission to convert this back into two hmos which it used to be so thinking about your exit

it might be easier later on to sell two hmos rather than a hotel and in the three years which is coming up shortly we've had an uplift of 475,000 but the key here is that we've had 180,000 pound rent but I I I think it's on the next SL Actually to summarize the total Capital that we've actually got invested in this is just over 28,000 the email Communications the whole negot negotiations of this process took place over I think it six or seven emails over three evenings we hadn't viewed the property we hadn't met the

vendor we hadn't spoke to the vendor it was all done through email there's the profit less than day but that's the Return 200 what over 2,000 over 2,000 um% return on investment because the only cost that we've got here is the £23,000 option consideration which is coming off the purchase price anyway and then the legals but what I want to get over to everybody is that this is a big building that you wouldn't normally think that you could buy and it's a big hotel that you wouldn't really want to think I can operate it or

I don't want to employ staff but we've not we've Negotiated really good terms we've made the vendor happy and we've literally just passed it on to somebody else to run for us okay now when this actually comes up for Renewal we'll look at a guaranteed rent model again but we'll also want um an increase in the amount if they go above a certain occupancy level so what's good about this is it's a deal that can be done part and then you just move on to the next one so this is one that's always running in

the Background for you so when we go back to why you want to be thinking this mindset shift about why you want to be considered a lifestyle investor as opposed to a traditional investor it's because you're saving your time in your resources you know a hotel you put no time in £23,000 you increase your conversion rate because you can now do deals other people can't because we're going to go through the um the low money down model So for instance not many people could actually convert a hotel but it wasn't that difficult it was just

like any other property it was just a bigger building and you'll have access to more deals because the agents will start bringing you deals before they take it to Market a Lettin agency that doesn't have an state agency side they're going to bring you all the deals where LOL want to sell when you put an email together for your estate your letting Agent they will send that letting agent to all their self-managing landlords because they're not getting paid from their self-managing landlord so they've got nothing to lose but if when the self-managing landlords um agree

a sale they're going to get the management of the property or at least a referral pay now I know that when I had my leton agency L's agency before I sold it we had over, 1500 self-managing land laws that we could email mail okay all The Lettin agents are like that you just need to explain to them how they can work with you and you'll optimize your returns so if you think of an assisted sale you're not putting your money into a property you're literally just paying for the refurbishment because you're not buying the property

you're not paying the 3% stamp Duty so your margins are much higher and one thing that we do if it's a big refurbishment we'll joint venture With the contractor so that we don't have to visit the property we don't have to get involved and the contractor will actually do the work pay for the work use all his contacts for a share of the profits so again it's one where you do the deal from your laptop or buy email agree and then somebody else goes in to do the work so how well first of all we

work from the laptop and we communicate bya email like I say we don't do viewing Until the offer's being accepted now a lot of Agents will actually say but no we can't let you view a propert we can't let you offer on a property before you um before you view it but they can that's just their rule if you're speaking to the owner of the estate agency they will agree because they don't want to waste time if you speaking to the agent that actually gets to drive to the property and get paid for standing around

and then driving back They're likely to say no we don't do that but if you actually explain to them look I don't want to waste anybody's time I can see all the photographs on right move or property filter um you know I'm very experienced in this area I've got other properties I'm going to put an offer forward can you put it to the vendor and I will view it if the offer is accepted if it's not nobody's time's being wasted and more often than not the vendor will say yeah Let him go ahead I will

accept it or that price or they'll come back with a price that they're happy with for you to decide but either way you're not viewing a property until an offer's been accepted you haven't got time to keep going around viewing properties if your off is not accepted we use delayed completions as our first point of core that's our first consideration unless it really really makes sense for us to use cash which is Generally only title splits I found um and we always look to raise private Finance constantly we're educating State agents and Lettin agents you

can educate an estate agent probably in about nine different scenarios so every time that scenario comes up they'll think of you if you're dealing with somebody in the office one of that one of those scenarios would be do you have any properties where the sale was agreed More than four months ago and it seems to be going slow and then they'll be thinking of properties so they'll think of you and then they'll give you more information because they have to report any offer you put forward to the vendor even if the SES being agreed and

when we're raising private Finance we're not raising funds to put into a project we're not offering charges on property we're not offering security we're not offering personal Guarantees and we're not offering profit shares unless there's a loyalty bonus involved and you want to reward an invest that's being with you a while they're simply investing out in our companies for a fixed rate of return and the only security they've got is the loan agreement that if you don't pay them they can take to court okay you don't need to be paying high rates of Interest in

property groups so we're going to go through that in Detail so I'm going to kind of I'm not going to spend too much time on this because I understand that you've already had people on here talking about lease options that have gone through what like the basic structures so there's no point in me really repeating that I'm going to tell you how to find them and how to convert them but basically the lease option is just an obligation um got there is an obligation to buy the Proper the right but not an obligation to buy

the property during the option period now for me personally what this means is that I'll agree an option and if it's for five years at some point be before that five years I will sell it on to somebody else so I've never owned it that's probably about 80% of the options that I do the other 20% will be where I'm going to keep them as longer term assets so I'll be completing on them and then uh refinancing them ear later dat My intention at the outset is that I'm going to complete on this property myself

it's kind of a generic term for other things like exchange and delayed completion installment uh options or reverse options but the number one piece of advice is never refer to it as a lease option if you mention a lease option to a vendor and they mention it to somebody else um it's going to put them off if they Google it it's going to put them Off if they mention a lease option to their accountant or solicitor and they're not what you call professional portfolio landlords they're going to be put off so the term that we

use always is a delayed completion everybody understands the delayed completion estate agents solicitors vendors it's just at this point this early point they're assuming that it's a delay of perhaps a week but when we take it to email and we're Talking about the advantages of what we're offering then they it starts to make sense that the delayed completions longer but they understand the benefits and why it's appealing to them if we actually said to somebody on an assisted sale um we go straight and and um I'll offer you £300,000 with a delayed completion of nine

months they're not going to be interested at all nine months seems too long at that point for them okay so we go in with a shorter Period and by the time we exchange we've extended it because by email we've explained the reasons why the reasons being is the work's still only going to take four to five weeks but when we resell it I don't know whether the buy is going to be in a chain so we need a longer delay however it's in both our interest to complete as soon as possible because you get your

£300,000 and I get the cost of the refurbishment back you've got to Actually approach it in a systemized way and when you're exercising the option there's basically four ways that you you really want to be using them um to to make yourself the investment return the first one and by far the most common as I've touched on is that you're going to do the lease option and sell it or assign it to a third party buyer at some point in the future so if it's a fiveyear lease option at some point Within five years you're

going to sell this without actually owning it by far that's the most common method you can complete on it yourself at the cheaper price you agreed with a vendor and you can complete on it for cash or you can use Finance to buy at that price the benefit of actually buying sorry the benefit of buying it the purchase price that you agreed at cash is that obviously by the time you Exercise the option the property price would have increased so you would literally buy it cash and then refinance it straight away at the market value

so normally you get all of your money out plus some you can assign the option on to another investor the only time I personally do that if the proper is outside Nottingham I don't really deal outside Nottingham but you will always lose money on that it's just a personal Choice you'll always make money if you keep it as an option or commonly at the moment is that you negotiate a brand new Option before the first one ends so recent example of this was we were coming to the end of a fiveyear lease option um I

emailed the vendor um asked how she was um we're coming to an end would you be interested in repeating the terms and it was a case of on the original one I paid the £3,000 on Exchange option consideration so I just thought more than happy to pay you another £3,000 if it comes off the purchase price now this lady hasn't had anything to do with the property for five years yeah she's not interested in what it sells at because it was already five years ago she can't even probably remember the price that was agreed what

she's interested now in is another another £3,000 and again she'll probably have nothing to do with The property for another five years so it's a really easy way if you actually want to extend the lease option the benefit for me on that one is it's on a repayment mortgage so I'm actually paying the debt down with each month um and the property price the properties a starter home and it's gone up a lot in value so why not keep the mortgage going your main profit streams are with a delayed completion or loan money down You

generally get a favorable purchase price because you're providing a solution you've got your net monthly cash flow so my average lease option is five years so I've had 60 60 months worth of rent you generally get an uplifting value you've got an uplift on anything that's done to the property you've got the market appreciation and then obviously you've got any rent increases that you Introduce but most of all is the saving and opportunity cost so if I'm not having to tie up a 100 or £200,000 in the property I'm only putting £3,000 down or £23,000

down and then not taking any of my time off I can scale very very quickly so if I've got2 200,000 in my pot I want to use that for multiple properties rather than just one flip now one thing that I've noticed in in our group is that people say well how do we actually calculate what the Property is going to go up in value should we work to a 4% capital appreciation you can't with least op options this you will never know how much money you're going to make on this property you will just make

a lot of money because there's so many things that you can't take into account you can't take into account whether you're going to get a premium whether you you convert it to a tenant buy option how much the proper is going to go up the Rent increases because what will happen is in that five years there will be a trigger where you decide I'm going to see whether I can sell it now one trigger might be that tenants leave so you put it on the market for a couple of weeks to see what price you

can get you might refurbish it put tenants in it and because it's a refurbished property you'll get a oneoff premium from the tenants so Now's the Time to try and sell it on the market because your buyer Is going to be interested in the yield and the fact that it's fully compliant and it's fully refurbished so you're going to get a premium okay so there's never any way to know at that's that time how much money you're going to make but just trust the process you will make money you just don't know when you you'll

have covered um the main information you need like outstanding Mortgage and terms but as you're going to see from the blueprint you need to know the reason for selling because that's going to give us the scenario which will give us the problems which will give us the solution which will get us the deal we need to know what the plans are for Equity because this is going to determine what we offer them on Exchange as the option consideration or better to term it a non-refundable deposit it Because we never use legal terms so a non-refundable

deposit like a delayed completion so one lady for instance she was selling their property she was a reluctant landlord she used to live in the property but she moved out the area had tenants in it the reason she was selling is that she wanted to do a refurbishment on her own property how much did she need she wanted to put a new kitchen in well if I actually give you £5,000 on Exchange would you be Interested in agreeing this purchase price and then email we're explaining the delayed completion but the bottom line is she only

wanted £5,000 out of that property so that's how much we offer on Exchange and then we take over all their responsibilities with a lease option so the key is to find out what they're going to be using that money for because you you you'll find that most people try and sell a property and all the money or most of the money is just Going to sit in the bank they've got no real reason for it um to to sell it other than a smaller amount and then we need to know what the monthly payments are

because obviously we're going to be taking over the monthly mortgage payments General overview of key points the longer the term the more you can so initially you want to try and get as longer period as you want usually with within a fiveyear period you'll get rid Of that option because you will have made all your money and you would have moved on to something else before the end of the option period but if it's if it's 9 years left on the mortgage go for an 8-year lease option the reason you can offer them more now

is because you're going to get 60 or 72 months worth of rent you're going to get the rent increases the capital appreciation so if something's on the Market for 150,000 you know you could offer them that 150,000 to to beat all their competition you could even offer them more because you know how you're going to make the money because you're not having to put much money down and you're actually benefiting from all the five years worth of rent and capital appreciation have any payments you make deducted off the purchase price um so We've had lots

you know Skip higher house clearance we've cleared some of his areas once we cleared somebody his credit card there anything that you pay out to incentivize that vendor to do the deal with you have taken off the purchase price because they're not bothered about that the purchase price is years years away their main focus is on what money they're going they're going to get on Exchange and whether you can actually help them before exchange Such as paying off a credit card debt now one of the point is people think that lease options is all about

finding people that are in financial trouble I've never ever done a lease option with somebody in financial trouble okay the these These are nonpr properties you're just offering solutions that they hadn't actually thought about and the negotiations continue to until exchange so um I'll use an example For this my personal um strategy is profit and longer term assets I'm not interested in cash flow I just want to make some properties I just want to make the money and build my pot up and some I want to hold longterm so say we're in a situation now

where exchange is set for next week the sists have got all the paperwork we're just waiting for the exchange date I'm paying this person £22,000 on Exchange I'll drop them an email and just say Just to confirm that we du to exchange next month um I don't know whether it's of interest but I'm happy to pay an additional £22,000 on Exchange um in return for and then think of yourself do you want a longer option period or do you want more knocked off the price so one that I did for instance um I gave her

an extra £4,000 but she knocked £99,000 off the purchase price because the 9,000 000 is five years Away the extra £4,000 is next week so you focus their attention there okay and the best part about this is that you're finishing the email by saying no problem if you or obviously you make it need to be an email but no problem if not the sists I'm still happy to exchange next week it won't delay matters as the sists literally just have to amend the contracts so it doesn't delay anything so it's not you're not coming across

as you're trying to Renegotiate you because you know you're close to exchange you're offering them an extra I don't know two three or 4,000 pounds you don't have to it's just something that that you can do if you want something out of the deal a little bit later on so my blueprint you don't get simpler than this grasp the concept and build it out yourself okay so the first thing you do is you understand the vendor scenario Every property sale has a has a scenario and what you've got to be thinking of is it's one

of those oh it's one of those and then your state agents are also thinking it's one of those it's one of those so a couple are splitting up that's a divorce it's one of those the landlord's downscaling this portfolio it's one of those scenarios it's a rent to rent that's gone wrong one of those scenarios you get the idea so when we know what the scenario is we go on to Step two which is we understand the potential problems now not all these problems might exist in the vendor's particular circumstances but we're not looking at

the vendor's circumstances at this point we're looking at the scenario every scenario has three to five main problems okay the divorce couple yeah the problems even if they're not aware of all the problems the what will Normally happen is the guy moves out goes into a flat the lady stays at home with the children but what's happened is the household income has now been split but the expenses are still there okay when they do sell the property chances are there might not be a huge amount of equity in it and it's got to be split

so there's not going to beu a huge sorry a huge amount there the problem is likely to be when that lady moves out and she wants to go into alternative Accommodation which will generally be rented they both go inter rented and because she's not normally in full-time employment because she stays at home with the children she's not going to get great accommodation from letting agents the problem for her even though she's not aware at this point is where is she going to move to if she sells the property the solution we pay six months rent

up front for for to go into accommodation of her choice that's the Option consideration which is deductible off the purchase price so we found a solution there because we a recognize what the problems are even though they don't at that point so that brings us on to step three we're now understanding the solutions okay so going back to the assisted sale we look at the property what's the scenario it's a dated property that's not going to sell because it's priced Too high the potential problems they're not going to be able to sell it for the

price that they want want for it unless they either do the work themselves or they reduce the price and then that obviously they're not going to get the price that they want the solution I'm going to go in I'm going to do a refurbishment pay you the price that you want and then obviously I'm going to make that little bit on top you see from that scenario imagine you've got a book You're putting a booklet together now so you've got assisted sale scenario Page One problems with that scenario page two solutions with that scenario and

then it's really just the case of starting to communicate it by email now when we're using email what we're not doing is we're not putting a big email in front of them we ask one question to get one answer one question to get one answer because you build momentum most people get their emails Through to their phone so they can reply straight away as you don't as long as you don't make it difficult for them to exp um to reply do you have a mortgage on the property yes do you know how much is outstanding

on it such and such what do you know your monthly payments compare that to if have you got a mortgage how much is on it is it interest only what interest rate are you paying it's too much information that that they they're trying to find Out and Communication email negotiations don't take long it's normally four or five emails there's always a standard set of questions that they ask and you already know the answers because you've done this before you build in the templates by email so another example I know that this lady she gets home

she feeds the kids the kidss go to bed at halfast 6 she goes to bed at 9:00 okay I've got between half 6 and 9:00 to do the deal otherwise I have to Wait the next day for her to get to email so she's going to be sitting there after halfast 6 with a glass of wine in front of a laptop so I'm asking one question one answer one question one answer and before 9 o00 I just want to say um can I send a copy of the heads of terms over this is simp Le

onepage document outlining what we've agreed if this accurately reflects what we've agreed I will instruct solicitors tomorrow morning and all you wait for to Come back is yes that's fine and then I'm instructing both sets of solicitors copying her into the solicor that she's using that I've recommended so I've done everything for them at 9 o'clock at night so she's gone to bed doing the deal this is why email is so important to use you can't explain these things over the phone so let's go back to the hotel first thing we do step one understand

the scenario is a rent to rent gone Wrong so we're going to the rent to rent gone wrong page in our little book that we're starting to draft problems no rents being received empty property and cost he does not want want to run a hotel he doesn't know how to sell a hotel so now we're go on to step three that's page we have a booklet we will pay you a guaranteed rent we will pay a non-refundable Deposit we will take over for responsibility we will agree a purchase price now and an exit date see

what we've done there we' we've basically offered a solution to each problem that they've got even if they didn't know they've got the problems we've offered the solutions to the problems that we know that they're going to have little bit more detail now so this is a block of 10 Flats okay 10 Flats rent to rent Agreement gone wrong these have all got Council repair notices on them um and the property is intents are noncompliant what's actually happened is the the operator's done a runner so the landlord doesn't even know where the people living in

his properties never mind whether there's tency agreements in place so this is a whole world world of pain that he doesn't know about yet so we can go to the same booklet as the hotel because it's a rent to rent gone Wrong the problem no rent being paid non-compliance sometimes you've got to this is why we talk about potential problems sometimes you've got to make them aware gently of the problems without being it coming across as though you're trying to scare them so at this point he thinks that the council are going to go after

the operator so what we need to do by email is gently advise the no what will happen is when they can't track him down they will come to The registered owner on the land register which is you so at some point they're going to come knocking on your door okay so at that point You' kind of told him what's going to happen that he didn't when he didn't realize that was the case it's going to be expensive for him to deal with but the big problem that we know as experienced investors is that he hasn't

got the experience and knowledge to deal with 10 properties that aren't compliant where the Council's knocking on their door not many people have in fairness it would cost a lot these this is a kind of problem where i' probably get paid a consultancy fee to deal with because there's there's a lot of potential problems on something like this okay but we need him to actually recognize that this is the main problem basically it's not going to go away and the reason that we need to make him aware of this is he doesn't want to Sell

the property he only wants another rent to rent agreement but we don't want rent to rents because we're not going to end up with an asset we always want a lease option so normal things you know we're going to deal with the compliance we're going to pay the rent we will work with the council and we will be Remember by email it's a lot easier to explain this stuff we will become the liable party so what that actually means to the landlord is That they're not going to go after him they're going to go after

us and we have the experience or the contacts to deal with this but the bottom line is he's going to pass this to anybody that will actually take it that's that's how you got the lease option so the terms agreed fiveyear lease option it's for 10 Flats is a block of 10 Flats we're not paying any deposit or option consideration because what we've Explained to him is that you know we're going to have to spend money on putting this right which is understandable the 25,000 monthly payments is what the rent to rent operator was supposed

to be paying so we've just matched them remember like the hotel we've just mirrored the existing agreement and then we've got a discounted purchase price because we got we're going to spend money on these Flats to satisfy the Council again to summarize this is only taking capital of 225,000 so we're not paying it all at once it's this is the repair cost over a period of time there's the profit but what's key is that we've come to well next month actually we come to the end of the fiveyear option he's approached me to renew it

for another five years but he also now wants to include the Freehold and the commercial units because it's worked so well he's Had nothing to do with it and he's been getting his two and a half thousand pounds a month both this in the hotel the vendors didn't have a mortgage these are portfolio landlords so don't think you can't do lease options on properties if there's not a mortgage you're still making monthly payments to the landlord um yeah nice nice return there so we've kind of seen we look at what the the scenario is the

problems And the solutions now this is more available for everybody you know I wouldn't recommend that you go you can all do the hotel but the 10 Flats with all the compliance issues might be a bit bit of a too too big a buy this is a simple one property okay you'll get these from Lettin agents um and you'll get these from some State agents and you'll find them direct to vendor so this is basically a tenant that's in a um it's a refer referral through an Estate agent and the tenant's not giving anybody access

the vendor knows that the the kitchen ceilings collapse and the vendor just wants the property sold okay now this is a referral from an estate agent and this is how we educate estate agents so here's another little this is how we educate estate agents scenario as an estate agent I know that sometimes you'll get a landlord phoning you or asking for a desktop valuation and the first thing anate agent will say Is to give you an accurate valuation I need to go to the property but the landlord knows the tenant will not give access so

it's a bit of a wasted it's it's a wasted exercise for the estate agent so I've explained to the estate agent what's going to happen here is two one of two things first of all you know there's a problem tenant so first of all you might not even get access to the property but even if you do get access to the the property it's going to be Really difficult to arrange viewings because you might get access once but keep getting viewers going in second issue is that you've got a tenant in the re problem tenant

so even though a buyer might be happy to buy it now further on down the process their solicor is going to say that you need vacant possession and if your client could have got vacant possession they would have done so the chances are something's missing on the compliance so what's Going to happen Mr estate agent is that you're going to waste a lot of time on this and you're not going to get a fee now what that estate agent's been educated to do is that they'll say to the person I know what your issues are

I know an investor that specializes in buying properties with tenants in and he's not bothered about renters am I okay passing your details on to him his name's Mark can I pass him your email address Boom the estate agent Isn't going to get a fee on this property but now he's got the potential of getting a fee because he knows that I'll pay the estate agency fee on Exchange the landlord will say of course can you pass my details on because she knows what the issue is as well and then what we've done is we've

took everything to email okay so that's just another example of how we educate very specifically and state agent very Specifically of what we're after so we will get all those type of properties coming to us okay so we recognize the scenario it's an areas or problem tenant so now you're on to another page in your little book understand the potential problems this is why you're having the slid so you can actually start to build your own blueprint out so the situations only likely to get worse most vendors would understand that you're going to have a

Potential disrepair claim most vendors won't understand that so you need to explain that if a council gets called out you're going to have to spend a lot of money on this property potentially it's going to be difficult to for you to sell you might not get access or you're going to get low cash offers and EV victim tenants can be difficult and stressful so we know what those problems are remember we're doing this by email so you know we're asking Questions you know are you aware of what the hhsrs is no and then you just

put it in brief layman's terms now our Solutions because we believe in a win-win is that we're going to provide an instant and clear solution if four weeks we're exchanging so they've got certainty it avoids any further expenditure for you you're not going to spend any more money on this property don't worry about any compliance issues I'm going to deal with Them don't worry about taking the tenants Court I'll deal with it so what you've done is your breath of fresh air now that's just come along and took away all their problems and agreed to

purchase the property off them now what we're starting to is we're starting to think how does this fit our plan so generally with a problem tenant we know that we're going to get a least option out of this as long as we communicate it right by Email either the tenant's going to clear their ears or they're not if they don't we regain possession and we know we'll get possession worst case after nine months and I'll explain how in a bit okay so we've got a very tight framework that we know is going to work here

when that turn moves out we're going to refurbish the property we're going to relet it to professionals it's a premium rent because it's professionally refurbish furbished Property and then we're going to sell it to a third party investor buyer so that we're getting cash flow up until the date of of completion that in about 80% of lease options is the the plan that I use if if it's a really nice building you know I might refinance it and keep it but this is about easily 80% of the the option we need the general information that

you already aware of this is before we Viewed it we know that we're going to have to get um the compliance and the rent details which we can get from the um the landlord and from comparables we don't need to go into the property we can work to the fact that this is a three-bedroom property it's terorist there's only so much that can actually go wrong with it so you kind of roughly know what the refurbishment cost is going to be the key thing is you want a new tency agreement before you Exchange because you

need to know that you can get that tenant out before it gets to court uh through the court process so when you do a lot of these problem properties one of the main problems is the landlord doesn't have the compliance in place to get them out through the courts or using a section 21 anyway okay so we want to cover ourselves before we exchange so we're getting the heads of terms agreed and we''re instructing Solicitors and then at that point that's when we start asking about the compliance because if we start asking the the vender

if they've got all the relevant certificates and they haven't we might scare them off but if they've committed to a solicitor and they've instructed them they're more willing to work with us and we're still going to be saying you know I'll deal with the compliance you just have to decide whether you want to take off the Purchase price or not now before we exchange I recommend that you visit the property or you send somebody around to visit the property with a problem tenant you're doing this for two reasons first of all you're trying to S

the tenant out if you're not comfortable with it you know if if it's a big guy lots of tattoos and angry looking faing a baseball bat in his pocket you might not want to do this deal right but most tenants if they're In the rear there's some sort of issue that's gone off in the background that you probably aren't aware of you most tenants will try and and when they know it's going to be new landlord they'll try and create the right impression okay so very rarely will the problem tenant continue to be a problem

tenant and you're also there secondly to assess the condition of the property and it's not for the refurbishment cost because you got that in the purchase price it's more To do with are there any compliance issues that I need to deal with before I exchange if there's not an electrical certificate you need to get that electrical certificate done before you exchange because you want to protect yourself and then I'm going to make sure all the compliance in place and I'm going to sign the new tency agreement now I'm going to jump ahead because one of

the questions that I'm going to be ask later no doubt is how do you get That tenant to sign a tency agreement first of all the land the tenant would generally have an issue with the agent or with the previous landlord the current landlord I'm a new landlord they want to create the right impression but what always works is look I understand that you've got rental rear at the moment I don't know the reason why but as soon as we've we've completed and I'm your new landlord you won't owe me a penny you will owe

the landlord money But you won't owe me so if you go to a letter an agent or another landlord and they send me a reference for the next 28 day in the next 28 days and ask if there's AAS on the property I can honestly say no do you know if you don't make the next rent payment and I get reference in six weeks I'm going to put that you're in AAS so if that tenant thinks that they're not actually going to pay the rent they will move in the next six weeks Yeah but either

way they're going to sign the new tendency agreement because they think this is a way of actually getting rid of the areas because they won't have any Aras with me under the new tency agreement I keep the tency agreements I don't tell the vendor about that tency agreement that's my protection yeah I'm not passing it to anybody else and then when we've completed that's when they get dated okay you'll probably ask more Questions on that later so on this one standard um options £60,000 left on the mortgage um market price 85,000 we'll jump ahead to

the actual figures we've agreed a £10,000 discount that's the price of a a problem tenant in her her eyes I only want a 24mth lease option on this property my plan will be when the tenant leaves or if I get her out I'm going to refurbish it put tenants in and sell it it's not one I want to hold on to this is a profit Strategy for me no money up front because the land lady knows I might incur cost doing the property up or taking the tenant to court and the mortgage was really low

you always want the right to assign which means that you can sell it onto somebody else without buying it but this is generally in the agreement anyway and then what you want to do is always try and get a right to extend now the right to extend will just mean that if for any Reason that you can't complete in 24 months for instance the tenant didn't move out quick enough you to do refurbishment I can can send £1,000 to my solicitor who will send it to the vendor and we've just extended it for another 24

months I paid 500 towards IL legal fees and this is something you should always do if they're thinking of using their own solicitor because you need to control both solicitors you need to have Them using a solicitor that's used to working with yours and who experienced with lease options because that's the number one reason why lease options fail is that they use a sister that's not familiar with that type of transaction so it's just a case of saying that um would you like to use one of my recommended solicitors no I've got my own um

to to save time expense and undue delay I'm happy to contribute 500 if you use solist that I can recommend just to Ensure that we can exchange in four weeks and the 500 isn't the reason that they're going to tell you but they'll accept that and then they'll use your solicitor but again it's deductible off the purchase price this was sold at a profit with a £57,000 uplift in 24 months because you get to add the rent that's the key thing you get to add the rent to your bottom line as well as what it's

gone up in value and the work came in at 14,000 but Basically you've got a net profits one day of my time she lived in my area so I called around one evening knocked on the door introduced myself as potentially a new landlord and I sized up the property in her at that time she wasn't given access to the letting agency don't really need to go into that the point is to know and you'll find this when you're dealing with problem tenants there's always something in the background that you're not aware of and That nobody

will tell you you know normally the Agents come down too harsh or the landlord's done something wrong but the not all the time but more often than not the tenant's not to blame this is a perfect example the agent was the issue here she had a repair and he hadn't done it so she started withholding rent and when she withheld rent then that's where it starts to build up into areas so I visited the property as A potential new landlord um the issue where the ceiling had come down I sent somebody around to fix a

leak to the bath 45 quid and I repaired the ceiling and when we exchange she actually paid me the four months re because she was actually only holding the money back until the repair was done so it's a bit of a bonus and then I got the um the tency signed before exchange so that was the issue Now for lease options if you've got a tenant sitting in there and even if they're not paying a high Market rent but you know that you would have to spend money on that property keep the tenant there as

long as you can because you're just killing time you want the property prices of the market going up you want the rents going up not necessarily that property so even if I actually refurbish this property I'm not going to get my money back through the Rent on the amount that I spend on it so she stayed there there for quite a while I didn't do anything with the rent but as soon as she moved out then I did the full refurbishment then I put the new tenants in and then I put it on the market

to sell and think of your target audience this is about as basic of refurbishment as you can get the cheapest hen's kitchen we kept the bath the most fitting and literally it's carpets and paint because by the time Your landlord buyer sees it it's going to have all tenant properties in there so there's no need to Stage IT spend a lot on fixtures and fittings just keep it as basic as you can so the overall thing that I want everybody to understand here is that it's not the property it's the vendor scenario that you need

to consider okay if you're investing in three bedroom um ex local Authority properties you're still going to investing those Properties you're now just going to approach them with a low money down um opportunity so to get this to hit home these are some of the recent ones okay we've got a two-bedroom starter home there the landlord used to live in it fiveyear lease option that's a two-bedroom masonet he wanted to sell it he only had £10,000 equity in it so why not let me take over your mortgage for five years I'll give you £10,000 on

Exchange um so he's in exactly the same Position had he actually sold it on the open market but before he exchanged I got him on a fiveyear low fixed rate mortgage okay so I I'll just sit on that now this one had subsidence 10e lease option his problem was he was only ever going to receive low cash offers um so he was happy to do a lease option very three very different type properties there these were three masonet they were just all empty at the same time two different type properties landord Downscaling the portfolios so

as you can see they're just also different this is this is an assisted sale and the only reason it was assisted sale is that they were hoarders it was absolutely ramed so when people viewed it they were put it off straight away we literally emptied the property redecorated and put new carpets in and it sold these are 11 Flats um we actually tied or split that building but this wasn't on the market she didn't even Want to sell she was Cash flowing £5,000 a month she only had two low mortgages on them all the tenants

a compliant the reason that she did a lease option with me is that we point out potential problems one of the potential problems that she hadn't thought of was the capital gains tax bill one of the solutions I could offer her was we can stagger the completions over multi years and I can get you access to 98,000 additional tax Allowances that's what made her do the lease options we pointed out a problem she wasn't even aware of but we know because that's a scenario where landlords facing large Capital can's tax bill we know how to

provide a solution through lease options this is a divorce um you paid six months rent up front for her um negative equity um important uh lesson here this is one of my number one rules never be the one to First mention A figure the first one to mention a figure loses this is an example she um she contacted me I don't I think it was through an agent I can't remember why but she'd been on right move and this is a three-bedroom house she was not an investor and she's not in the area and she

compared that to a two-bedroom apartment across the road from her so she based the valuation on a two-bedroom apartment so she thought she was in Negative equity 8year lease option so it's the scenarios not the property broke broken J chain so this is where you educate an agent an agent will know that a Chain's about to break before they actually tell the vendor so what the estate agent will know is that they need a certain amount of money out of that sale to allow them to move into the property that they're buying when a chain

collapses we can offer them that money as option Consideration or some of it which will allow them to actually move into the new property even if they agree to cash sale they probably can't get that money quick of but I can get it to them within three to four weeks doing a lease option okay so that's just another one where you educate an agent so again very different properties these don't fit in with my investment plan but what what you'll find is that when you recognize the scenarios and you have the agents Working with you

you'll just do deals because you can do deals and what will happen is you'll just use them for profit you'll flip them at some point you'll get the cash flow but it's just a way of of getting funds to reinvest them to your longer term assets like your hotel or your blocks of flats okay and this is the beauty of this way of investing is that you'll be doing deals without looking for them but you'll do them from your laptop because It's not taking your time up and you're literally following the blueprint so why not

keep doing these deals so the final two points and the one that we're going to focus on very briefly now it's not a long part is Raising and using private Finance so a lot of people go to property groups and they say um need investment £150,000 often 10 to 12% return or whatever we're after shortterm loans to Our property companies okay we use the money however we want to use it and then sometimes we'll refinance out onto longer term lender financing okay but any loans that coming in we just want shortterm short uh small amounts

constantly coming into our property company companes I don't need to offer more than 4 to 8% people in in our Mastermind don't offer more than 8% so you don't need to offer more than 8% because we're Not going to what you call the property investors I'm always looking at increasing my network of investors but I don't advertise I don't ask for money I I rarely even say that I offer fixed rates of return okay because my investors are going to their Network to find more invest M and I'm using short-term Finance for flexibility and to

avoid the red tape but I'm also offering safe returns to my investors because the more I look after My investors the more they go and find other investors for me so they're the ones doing all the hard work and this actually came about when we started testing raising Finance with our landlords the reason we started doing is that we knew that a lot of them were only making a two two or 3% return on their property so it's a way that we could actually put more money into their Banks if they actually lent US money

so our average investor the the moms and The dads the auntis and uncles that have got money sitting in Isis that's the money that they're investing with it's not large sums so we're keeping it simple and we're making it a lot less stressful for us so um if you can imagine the stress that you're under if you've had £150,000 to come to you from one in investor and you've put it in a brr and then it's overrun and the costs have come in Higher and now you can't sell it you know you've done everything you

can you've not done anything wrong and the vendor's not putting any pressure on you but you do feel bad because you've not been able to get them the money back when you said you were going to now what we do is the first thing we do is we lower the barrier of Entry we make it easier for people to invest with us so we say that you know um we invite investment from as little as £5,000 okay now you can imagine there's a lot more people with £5,000 to test us then they were testing us

with 50,000 especially if you're just starting out and you're not known as a property investor and if you're approaching approaching friends and family they won't see you as an investor yeah because they've not always known you as an investor we're now lowering their risk we're saying that you can invest from £5,000 for a period of six nine or 12 months so now they've got a very tight agreement and fixed dates that they're investing with us and what we want them to do the ideal situation is to testers with5 to 10,000s for six months that's the

perfect first time investor for me and we're got to pay them interest quarterly because we want them to see activity in their bank account whether you text them or email them when you Make that interest payment you know often they're not even thinking about it and then suddenly oh I've just been paid interest and then this is key because all of you at the moment are thinking what am I going to do with 5,000 well I've got to give it back after six months what will actually happen is after five months we will email them

because we do everything by email and we will say just to let you Know that we're due to return your Capital back next month would you like it paying in the same account that we paid the interest in because remember we've paid quarter um a quarterly interest payment 100% of the time and it's been this case for the last six or seven years they will say can I leave the money with you which is good you can then just renew an agreement or let them keep it with you if you want but this is where

You say not a problem do you want to keep to the same amount or increase your investment some will increase some will extend to 12 months so you do a new agreement but then you say I'm now happy to extend this offer to your friends family and work colleagues now there's two things actually happen here first of all um the trust and The credibility is there now because first of all you've made the interest payment on the date that you said that you're going to make The payment and you've offered to pay them back even

though they've said keep the money yeah so now the second thing is they'll go to people that they know tell them about you I've invested with him he's offered to pay me back I've already had quarterly interest and is happy to extend it to people that I know so they kind of get a bit of a kick by offering this opportunity as a bit of an exclusive opportunity to their friends and family and the way that this will Actually work is that over time and it doesn't take a lot of time because you're not just

doing it with one investor at a time you might doing it with five or six or seven because it's only5 or 10,000 at a time and a perfect example of how this worked is there was a plumber that invested £5,000 with this for six months as they all do at the end of the six months he he he said that we've got surplus funds in our company can we invest that with You £100,000 came from his plumbing company he then said can my mom and dad invest with you 80,000 come from his mom and dad

um and he's now got over £600,000 with us and it all started from that5 or £6,000 but from them there's certain investors now that we know have come through him because it starts off a chain so what you're doing is you're actually building a network and it's smaller amounts but because the smaller Amounts are actually going into your company part you can use it on whatever investment you want because you know the dates that you've got to make the quarterly interest payments but you you've not got the pressure on you so if you've got somebody

that wants to invest 200,000 with you you can break it down into two Investments of 100,000 or four Investments of 50,000 in different months so if if they didn't want you to keep the money you know that you're Covered and you've got money in the account to pay them the 50,000 and then the 50,000 the next month okay so don't underestimate how quickly they this could snowball I've got 1.8 million pounds in investor funds just from this and it didn't take a lot long to snow because some investors will will um will test you and

some investors will be on a per referrals but you've got your big in you like business owners you people are retired that are sitting On big funds but they don't know where to put it but by the time it gets to them they probably know two or three people in their chain of referrals that have all got money with you so you've got that instant credibility all this is without any charge or Securities we've simply got a loan agreement the fixed rates of return to our company so some common questions and these these aren't objections

these are questions so what security do you offer You've got a loan agreement you've got a contract with my company so if I don't pay you just take take that loan agreement to the court why is the loan to your company because most of my funds are in my company we trade properties um we get rents coming in I know I've got certainty of payment on the dates that I promised to make those payments if it's in a project you can't guarantee the dates that They're going to get their payments what are you using the

funds for well just investing into different projects at different times um you know we like to sit on a certain amount of money that if an opportunity comes we can move straight to it rather than actually waiting for finance to come in um what if you don't or can't repay me we've got company reserves of course but at the end of the day you can just take that loan agreement to Court okay but a lot of of rais in private finances mindset if you think there's going to be objections or you think you think they're

going to ask for guarantees personal guarantees and security you kind of set that tone and although this can seem a bit confusing now about your N9 69 or 12 um months and we pay you know offer investment opportunities for £5,000 remember all this is done by email you're in control you send an email if They answer by email you get to reply by email so again takes all the stress off in fact we've actually got a template where um if we send it out and if they want we only want two things from them can

you confirm if you're interested can you confirm how much you would like to invest and whether for six nine or 12 months and if they come back with anything other than those two figures we just email them back can you confirm how much you would like to invest and Whether for 69 or 12 months so you're taking everything to email again future approach final final part is anyone you know your War Market don't go outside don't go to social media don't go to professional investors or people that are asking for high returns um anybody that

knows you invest in properties most of my fixed rate returns now come from the referrals or from landlords or vendors so if if I do Actually complete on a property and I know that that money is going into his account then I'm you know suggesting to him that I can provide him a fixed rate return on a certain amount of those funds so sometimes the funds will just come straight back to me the lady with the title split she reinvested with me because you know it's like a fix rate and you build that ra or

through email as you've been doing the deal and you know if you've had a lease option with Somebody for four years they kind of have that trust by then and contractors contractors actually make good fixed rate um investors so finally to summarize lifestyle investor the value the time and the resources above all else you always want to be considering delayed completions on literally all of the deals that you're looking at you just need to approach it with the scenario first the problems and the solutions Educate the agents very specifically how to work with them don't

say I'm after all these type of scenarios start with one or two scenarios when they get the head wrapped around that go to another couple pick a property on their website and say you know this is one of those scenarios this is what I could have done but do an email so that they can reread it until you understand it and always be raising private Finance in smaller amounts constantly so it's drip feeding Into your company at all times and that's it so um thank you I'm sure there'll be a couple of questions mark thanks

you so much thank you uh yeah was a really really high value today so thanks a lot for sharing all of that I think you kept your promise uh you know to get people to rethink the old way about how we can invest in property thanks a lot about about that uh so I'll go through some of the the questions let me scroll through so a lot Of people are saying you know how great that was yeah just uh passing the congratulation and the thank yous um so I think reiterating about the email so was

asking so really you don't speak with the agents you do everything by email so yeah and um yeah there and there's a there's a set format for it now um you know you might know some agents you might have agents calling you but what what you've got to realize is that The agents won't have time to understand what you're saying to them if you want to speak to a valuer for instance a valuer will normally come in in the morning get all their appointments do the last minute research and shoot off so you're never really

going to catch them in if you're dealing with a progressor it's a different story so the first thing you want to do is that you go on the website and try and work out who you want to speak to so if you want Somebody that you want to educate in any progressions that have taking too long so you might be able to steal the deal from the buyer you want an office-based person so you might just go down the website and look who the sales progressors are okay the only time that you would phone them

is to Simply get an email address for the best person to speak to and it's going to be a very short conversation hi I'm interested in and say whatever you're interested can You give me the email address for the best person to speak to when they say are you on our database would you like to be registered what are you after just say I'm just after the email you really want them off the phone as quick as possible and then what you're doing is you're emailing the relevant agent with your introduction and then you're being

specific what you're after and then you take it to there and you're testing the agent you're seeing how quickly they Respond and how they respond to you there's no point having a conversation at this point because first of all most people do that so it's not really going to register with them and a lot of it won't sink in but when they get the email they'll they'll read through it at the time that they want to read through it so we're really just educating them how we're working with them and we can give them a

couple of examples but no very very rarely will I actually speak To agents um and they know that I don't really speak to them so they get used to communicating to me with me by email as well interesting can ask King so we have a checky question here you know can uh oh sorry yeah can we have the do you have samples emails copy for uh to share for the lease options I think you got the old booklet the old library of these whereas your secret is that working them because obviously that's kind of privilege

and and you know I've got the Group for that but what I will say to you and I will give you advice um because as an estate agent I picked up on this very earli is most people when they're offering will make one offer a purchase price so what happens is the agent and the vendor have only got one thing to focus on the price this is why people end up going below market value you want to give them an offer in an email and this is where you start building your own templates so if

we're Talking about delayed completions yeah your first offer is going to be a price that's too low that they're going to reject your second offer in the same email is going to be a two-year delayed completion the third offer is going to be a five-year delayed completion okay the 2year completion is closer to the asking price that would normally get accepted the the the fiveyear lease option offer three is over the asking Price so if it's £100,000 property your first offer might be £84,000 that's going to get rejected your second offer on this £100,000 property

is going to be 95,000 with a two-year delay that would normally get accepted um the third one the they see fiveyear delayed completion it's going to be too long so what's going to happen straight away is the vendor's going to see that and say too low that's a good Price five years is too long so what you've actually done is you've directed their attention to the offer that you wanted to accept and by picking that one what they've done is they've kind of Tau themselves into the fact that that's the best offer the next thing

they're going to want to know is why is it a two-year delayed completion and most of them will come back and say um can I have a shorter period or can you increase the offer to the same as offer three but What it's doing is it's getting you the email momentum going in the email conversation where you can then start pointing out the advantages of the delayed completion yeah but what will happen is you will always get a reply back that one of these three answers is better for them and then that's what you negotiate

on very rarely do you not start opening dialogue when you use that but if you can just if you just go in with an offer Or you put an offer on by the phone over the phone to the agent chances are it's not going to get accepted unless you you're really close and that's not what it's about going close to the asking price on this man do you ever get a scenario where they they take a long they take a while to come back to you and you follow up with them do you have little

systems to never forget or um no because you know it's it's a case of um first of all by the time they Get to you somebody's asking you to do the deal it's not like we're going shopping so if an agent's phoning you yeah yeah they're the ones have contacting you because um so they're wanting the offer from you as quick as possible yeah um if I One Way looking around sometimes when you're asking for information about the mortgage to an agent for instance they'll say why do you want to know that information um because

without that offer without that Information I can't make an offer to the close to the asking price and sometimes they'll keep putting you off but you make need to make them understand without this information you're not going to give them the offer so at some point they will get that information to you because their job is to get an offer everybody wants an offer from you but don't go giving it before you've got the information that you need so you're you're creating that urgency for them to Do something to get the offer from you awesome

yeah and it and it's so the next question people will have is like okay so how do you get in a place where they bring you deals you know how you get to a place where you build this reputation that you you're the property Problem Solver how do what is the first introduction I know you use property filter to identify some of the scenarios and and then and go and talk to them about these things can you tell tell us More that or that works yeah it's um sometimes people think because I'm an estate agent

I've got all these contacts yeah I'm an introvert I I don't Network I didn't speak to other agents but I know how agents think um and here's a perfect example that you don't have to be seen or known to be a property expert um I was um putting together um a module about how to cost up a property from the photographs online Okay so I needed to Find two refers where I could actually go to the property and take things like photographs of the meters so that I had something to coach the group on so

I literally found up an estate agent and I was very specific with what I was after I'm after a two or three bedroom property up to this price in these two areas that need a refurbishment not a big refurbishment maybe just a new kitchen bathroom carpets that's that's all the information I gave to three or Four different agents okay one agent founded me up next morning hand on heart this is true One agent F me up the next morning um and said I understand that you're after this and he regurgitated what I was after he

said that I I signed two contracts with the vendor yesterday I'm taking photographs there this afternoon do you want to come down and have a look at the property at the same time well I needed the photographs so I went to meet him and while I was at the Property never met this agent before I explained exactly how the assisted sale works what his problems were going to be like I explained to you earlier these are the issu issues that are going to be I'm going to put two offers in now to your vendor because

he's told me the price he wants and everything you know normal why is he selling that kind of thing I said I'm going to get back I'm going to put an email together the email's going to tell you this and then I just need you to forward that email on and that's going to be the detailed offer so he's happy with that but I know that most of that's probably gone through one through the next so I get home put the email together and this is key you phone the agent to make sure the agent's

in the office are you sitting at the desk yet I'm now going to send you this email through would you do me a favor phone the estate agent phone the vendor read through the email and then Ask permission to send it on and that's all that we did I explained everything in email I had the offers the different offers I've just talked about made it really easy for the agent to understand to send on so the agent's not got to explain anything he literally says I've had this email from the vendor can I read it

to you um I'm going to send it on to you and and the deal was done two assisted sales agreed with a brand new agent knew nothing about me because You'd explained it in the terms that he understood but more importantly you'd put the email together that he could send on to the vendor in a way that the vendor could understand came back with two questions quick answers it's done and that the deal was done the next day by email yeah so it's not that that you're known it's that you know how they think and

and what the benefits are and the benefits are these are the problems Benefits my Solutions awesome people ask yeah again about this email I think people are a bit challenged you know like really can you build rapport by email and and things like that so all you all you especially with the vendor if you just had an introduction the agent gave you the email details or do you build rapport just solely by email with a vendor to begin with if you do through an estate agent to begin with um the the Emails have to go

through the agent yeah um the way you build rapport is um you have to be perceived to be working with the vendor not as a buyer and that's that's a big difference that is okay so the questions that we're asking we're asking a little bit about the scenario because remember we already know what the problems are so if it's tax for instance it's a case of just referring to the facts that they might be facing um a capital gains tax bill or Um you know if they they don't necessarily want the tenants to know that

they're selling the property it's it's kind of pointing out um yeah I understand why you know if the tenant sometimes find that you're selling the property they'll move out and then you're left paying the mortgage with that and your rent so through the email you're actually working with them to get information from them you're not just putting an offer in and when the time's Right that's when you put the offer in okay so it's more sort of like a backwards and forwards but what will happen is the agent at some point will you will say

look can I just have the L can you get permission from me to email the vendor director and I will copy you in and normally it's the second or third email because the agent's in and out the office all the time he'll ask that question and as long as you're copying the agent in you'll be fine but what You'll find is most of your deals are done in the evenings because that's when your vendors are actually sitting considering looking over your email and that's how you get the Rapport because the guard goes down yeah then

they're not dealing with something on their phone the guard goes down and then they'll ask a couple of questions from you and then you'll just give them the answers um so it's a really smooth conversation as opposed to here's my Offer it's rejected okay I'll re I'll put this offer in instead so I know I can't go through it here but we've what we do is we've got scripts so we say right this is how we started the email conversation and you'll actually see on the scripts like four or five emails the same day then

there's a gap then it comes in the next afternoon and then they're going on the next evening so you can actually see question answer question answer and it flow it's all There so then you've got the template so it does sound difficult to do but literally it's just the way and you do it by email because it's one question at a time one answer and you do to do it to their Tim and you're not doing it all on the phone at the same time awesome thanks thanks a lot uh Den he's asking would you

be able to do this remotely you know if you be outside of the UK for example I'm a I'm a remote investor although I only invest in Nottingham I Don't go to properties and I don't go to agents so if if I'm buying a property um and it is to an agent they'll get the Occupy or the tenant to do a video walk around if necessary something like I very rarely do I actually go to to the properties so it's about as remote as you can get the only difference is that I know my area

so if you're a remote investor and you know the area you're invested in yeah of course you can yeah Mark do you mind moving a little bit on Your chair to hide the beautiful sun shining be awesome oh yeah in your beautiful self-build awesome thanks so much okay cool really good questions there uh does the vendor agreeing to list options stopping is this stopping them from getting another mortgage uh that's is it stopping them getting no you're allowed to have more than one mortgage yeah one of the reasons and again this is from experience people

Don't have don't realize this but one of the reasons that a vendor wants to sell a property is that they're actually moving into another property yeah uh and it's more to do with the affordability of that other morgage okay but once you realize once they realize that actually it's possible for somebody to take over those mortgage payments then that's not an issue at all um s the only issue you might have is on stamp Duty because obviously if they buy another property They've got that additional stamp duty to pay but what you can do is

that some aren't bothered you find that most vendors aren't bothered investors are you can offer to pay the stamp duty but as option consideration so you're actually giving them the money to pay their stamp Duty and it comes off the purchase price but no having more than one mortgage is never an issue at all yeah awesome uh syia is asking what happens if the vendor dies during the Option period a vendor dies um I I'm often asked this question it's one of the top two questions that you you asked is you know what happens if

anything happens to you or happens to me basically the option will pass as part of the estate so you know the agreement still in place it's just that somebody now you know is the estate or the beneficiaries that get the benefit of the option me personally I would look at actually completing on the option just Because it's it's an Integrity kind of thing is that it might have worked well for that vendor but the children or whoever the partner might not be interested in the option so I would look to complete on that earlier but

legally it will just pass on until whenever you actually exercise the option so uh Simon Simon's DM me about specific deals with problem tenant so exactly some things that are fitting into your blueprint here I don't really Think we have time to go into the details of the deals to make it work or do you but what's the best way maybe for Simon to get in touch with you mark after if he wants to pick your brain on a specific deal yeah I'm only on Facebook so messenger through Facebook awesome uh so lots of thank

yous and yeah sorry we we overrun a little bit but it was so valuable like we just kept going Kathleen do you only deal with liting agents if you also appro estate Agents is it the same way as leting agents so I think you covered that I you'll be amazed where deals come from um you get a lot of investors like the hotel actually they thought that was too big a deal for them so they bought it to me um there's director vendor but not direct vendor because I don't do marketing it's where other people

have done director vendor and most when they can't get below Market offer accepted that's when they bring the deal to me Because I don't really do BMV so I can I can get a deal where perhaps that's why I said everybody's conversion rate goes up because now you're not offering blow market value offers you're offering offers that people are happy with yeah yeah awesome uh so yeah lots of very interesting fantastic presentation um couple of questions and then I think we'll wrap up do you ever have any trouble taking over people's mortgages I think it's

just a blueprint For that just follow the yeah yeah no no problem at all the only thing you need to be aware of are you going to pay the lender direct or do you pay the vendor direct always pay the lender direct um unless it's a portfolio landlord and they've got lots of properties and they can't risk missing that payment oh that's really interesting right do you specialist solicitors and how to best find them yeah you want specialist solic but you want specialist listers For both of them yeah it's your vendor sister you buy your

vendor sister that can mess things up so always control and one of the things that you offer to do is that you know you all instruct both solicitors on their behalf you just made it easy for them but yeah always have two sets of specialist solicitors you you'll find them on on the internet keep away from commercial firms but um there's plenty of them around yeah yeah okay and you happy to recommend Mark if People reach out to you yeah I mean I use um Ms law um I mean I used to use Sam Hawkins

but I think that they gone off the boil a little bit I think they just what happens you make a recommendation everybody starts using them but Ms law kind of look after me I've been with them since 2012 so I'll always be the top of their pile um but yeah I mean this quite a few that are popping up now so miss for you guys don't know we had Shimon and Speak to on speak to Ms law because they know it and then say to them look what solistas are you finding that you enjoying working

with at the moment there we go yeah now they won't officially recommend anybody but they'll put you in the right direction yeah okay awesome Ian's asking what does your mentoring course involved mentoring course um it's it's six months we literally take you through the blueprint um scripts templates um I tend to Negotiate your first deals for you because you can't really make a mistake on your first one um so you you it's all taught through case studies so although we've touched on them today it's a case of this is exactly how we found the deal

this is why we negotiated it this way we kind of handhold you all the way through um and one of the issues that you might have at the moment is that you don't know what you don't know so I'll kind of say look you don't want to buy that in a Company name buy this one in your personal name or yours in your partner's name for this reason uh because this is what your exit is going to be in the future yeah so I can kind of point in the direction that you need to go

rather than that you think you need to go or I can tell you what questions to ask your account awesome and what's the best way to for people to be aware about this is a case of being friend with you on Facebook and then when the doors open People will be aware or do you have any any Court opening I know you you booked up many months in advance what's the situation at the moment yeah I mean I message you personally I've held five for you because obviously we got we we' known each for a

long time so the we've got course the next intake is in two weeks time all right okay we got five that I've reserved for yourself oh yeah sorry that's really down to you but yeah it's every six months um and the next in Takes in two weeks time okay if you want information just you'll see posts on Facebook what will happen is once twice a year I'll just put Mastermind opening I'll put what we cover yeah somebody will DM me I I'll again send what it actually covers um and then it's an application process really

okay awesome so here are the steps uh so follow become friends with Mark on on Facebook when the application opens say that you were on the property filter call uh and Then so you have five places for property filter people is that is all right yeah awesome Mark yeah thank you very much it's really cool uh does your involvement with the vendor solicitors potentially reduce the independence of them no because there's no conflict of interest I'm not instructed and what I'm doing is um I'm emailing mailing them an introduction the heads of terms and the

vendor contact details and then what will actually happen is after that point They'll make direct contact with the vendor so at that after that point after they've been instructed they can't communicate with me I'm literally just sending them the information and the vendor contact details all right we'll do two more question and I we'll wrap up so what prop in your um in your sellers what's the proportion between owner occupy and investors do you tend to buy more from hup or from other investors landlords And um you know I've never even thought about it um

it's just a different appeal um obviously anybody's been bought to me from letting agents they're investors yeah so it depends the state agents I suppose most of them are from owner occupiers but there's a lot of portfolio landlords at the moment that's where the blocks of flats are coming from and the bigger properties because they're just exiting the market um but it's whatever deals what you find is any Deal that's bought to you you you you'll just convert you don't kind of look into these yeah yeah awesome and then final question Ian is asking how

do you use property filter to find uh properties right okay so um I was going to include this at the end and then I realized I'd probably go over the time so everybody understands an assisted sale we always start with an assisted sale because it's really easy for you to explain to an estate agent how it works So you would go on property filter um I'll use nosim as an example anything above £250,000 yeah won't attract your buy toet investors because it won't cash flow enough anything over 250,000 won't attract your investors that are looking

to flip because they're tying too much money in the stamp Duty so above 250,000 you've got no competition but they you family homes which are generally dated and that People are downsizing from so these are the perfect assisted sale type properties so basically um when that you go on property filter put anything over 300,000 get everything that comes up in your area and then spend literally 10 minutes just going by the photographs dated keep new not dated tick tick tick tick so you're using as a filtering system to get down to just your dated properties

over 250 or 300,000 yeah you'll probably there's 75 in Nottingham To give you an idea um and then all you'll do is have a quick scan around see whether there's any agents that you worked with before see if there's any that you actually recognize the area that you're particularly trct to focus on the ones that are empty yeah because you can go in and do the refurbishment straight away and then you'll know from the areas so what you've done now is you filtered them down and you've got all potential Assisted sales now are the only

the agents that you're happy with and then look at how long they've been on the market if they've been on the market more than two months they've gone stale if the price hasn't been reduced yeah either the agent's not done the work or we know the vendor fixated on that price which is really good because you can offer close to that asking price that's the easiest way to use property filter for assisted Sales awesome thanks a lot M now you mentioned earlier about um properties so subject to contracts since a long time I know you

pick up some some good lease options as well there and some of your monties as well yeah awesome thanks so much any uh any final um you know like closing thoughts uh Mark and then I'll thank you very warmly no I mean that's that's the fourth kind of thing that I've ever done and I just get excited every time I do them um the what you got To realize is that there's just so much information okay so the first thing I would suggest that you do is just focus on assisted sales to begin with because

they're really to easy to identify and think of the time of year that you're at at the moment by the time you've done that refurbishment you're coming into the summer months when families want to move into properties that are ready to move straight into and then when you start marketing them for sale start Marketing when the plaster Works fresh and the carcasses are in don't wait until it's fully done because most of the sales you'll agree before you finish the work and some of the event your buyers that coming in will actually start paying for

things like if you put a certain carpet in I've had vendors pay for kitchens so that they can pick the kitchen right things like that so don't wait until it's fully finished before you sell it because you'll get people Knocking on the door saying what's happening with this property yeah very interesting okay thank you so much thank you uh I mean was really happy to have you today and well worthwhile overrunning a little bit it was just value pack so I really appreciate your time and thank you all of you for you know joining today's

deal final Corner take on Mark's offer so connect with him on Facebook and then once when he opens the door for his Mastermind reach out to Him and yeah we we have a lot of our successful case studies I've come from Mark Mark students so I'd love this to be uh I'd love you to be one of the next one in the meantime visit props filtera UK log on to your property filter account check out the deal blueprint where you can Define your gold mine area engage with motivated s assess properties in seconds load your

pipeline and actually make deals have an endless supply of deals join the top 1% Of investors out there become a i achiever dealfinder I hope you enjoy today's deal final corner and look forward to seeing you next week thank you so much have a great day thank you very much Mark thank you everybody for your time thank you