Samuel: My name's Samuel Leeds, and on this video I'm going to be showing you exactly
how you can find properties 20% below market value, and more, every single day.
Samuel: Now previously in the past, I've talked about how return on investment is the thing
you really should be looking for. Don't worry about whether it's below market value. Now,
I've changed very slightly, because right now in 2018, there's so much opportunity to
find deals 20% below market value. So I say, if you can get both, 20% below market value
and a minimum of 20% return on investment, that is really where the money is at.
Samuel: And also, it's very easy to find properties that are 20% below market value. So here is
how you do it. Step on, the properties that you're going to be looking for below market
value, you also want them to be getting high return. Properties that give you a high return
typically are properties that you buy low. Reason is, if you've got a house that's 500,000
pounds, the rent is not that much more than a property that's 100,000 pounds. The correlation
is not quite there. So you're going to be looking for properties that are quite cheap.
Samuel: So you're going to go to Right Move right now, you've got to do this, because
the results will just astonish you. Go to Right Move, and you're going to search in
an area north of Birmingham for properties priced between 50 and let's say 70,000 pounds.
So 50 to 70,000 pounds. You'll search 40 mile radius, and you'll find there are thousands
and thousands of these properties. Now, rather than searching from lowest or highest price
on Right Move, you're going to search from oldest listed. Oldest listed means they're
probably quite motivated. Look at the properties, and you can very easily value a property by
looking at what others sold for on this street, and get an idea. So check the asking price
is also the same as the market value.
Samuel: Once you've done that, you're going to then ring up the estate agent. This is
the scary bit, the oh my gosh, I've actually got to call an agent. Yes. In order to make
money, in order to get results, you need to a little bit of work. You're going to call
the agent, and I'm going to give you the words exactly that you must say when you call the
agent. So, the first thing you must say is this. You're going to say, "Hi agent, I'm
ringing about the property on Church Road for 50,000 pounds. Do you know the one?" Now
the reason you're going to say, "Do you know the one," is because what amateur investors
do is they start spouting off about, "Oh, I'm going to make this offer and I wanted
to ... " and the person they're talking to could be the mortgage broker who happened
to just pick up the phone.
Samuel: So 32 Church Road, selling for 50,000 pounds, do you know the one? "Yeah, I know
the one, how can I help?" Great. Then you're going to say, and these are the magic words,
okay? So it's on for 50,000 pounds. You're going to say, "Okay, now look, I don't want
to offend anybody, but I can probably only afford to pay for that house about 40,000
pounds." By the way, that's 20% below market value. "About 40,000 pounds. I don't want
to offend anybody, so is it worth me making a viewing or not?" And at that point, if they
say, "Yeah, it is worth you making a viewing," they can't then moan at you when you put an
offer in of 20% below market value.
Samuel: In fact, if they say, "Yes, it is worth you making a viewing," there's a very
good chance that the estate agent knows that the vendor will take that offer. You spend
a day doing that, and then book a day of viewings where you'll view like 10 houses, which have
all been pre-qualified BNV, offer 20% below market value on all of them, and let's say
out of 10 you get five, you just bought five properties 20% below market value.
Samuel: What do you then do with those houses? Well, you can buy them and maybe, I don't
know, refinance them potentially. Potentially. Or you could pass them on to an investor for
a fee, make sure you're compliant if you're going to do that. But that's how you can find
below market deals.
Samuel: So best case, when you ring up is the ... Srija, she's one of my students, come
on Srija, come and sit down a second, we're going to role play this right now. So you
can see exactly how this looks. By the way Srija-
Srija: Hi.
Samuel: How old are you?
Srija: I'm 25.
Samuel: 25 years old, and you're an academy member.
Srija: I am.
Samuel: And you're absolutely smashing at the moment.
Srija: Thank you.
Samuel: How many deals have you done in the last month?
Srija: I've done two.
Samuel: Two property deals in the last two months. No, in the last month. And when you
were at the deal finding extravaganza, we did this exercise, right?
Srija: Yes.
Samuel: And there was lots of deals being found this way.
Srija: Oh my god, yeah.
Samuel: Yeah.
Srija: Within 45 minutes as a team we found at least five.
Samuel: At least five, I think it was more than thought.
Srija: Yeah.
Samuel: Within 45 minutes, so this really works. So this is the best case scenario.
Okay, so *ring ring*
Srija: Hello?
Samuel: Hi, I'm ringing about Church Street, it's on for £60,000, do you know the one?
Srija: Oh yeah, yeah, I'm working on that myself.
Samuel: Great, best case scenario, well Srija. Yeah, it's on for £60,000, now I'm going
to work out what 20% below 60 is, which would be £12,000... £48,000, okay, so it's on
for £60,000, listen, I don't want to offend anybody, but I'd likely to be only able to
offer around about 48,000 pounds for that house. I know that's below the market value,
but is it worth me booking a viewing or not?
Srija: Yeah, absolutely, definitely.
Samuel: Really?
Srija: I'll say though the sellers are quite motivated. They want to move out of the country,
so...
Samuel: Oh, awesome. In that case I've got a day on Tuesday where I'm going to be doing
some viewings, is it available to view on Tuesday?
Srija: Yeah, yeah, absolutely.
Samuel: Bingo! Now how often does that happen?
Srija: For myself, maybe one in seven, one in eight.
Samuel: Okay, I say one in 10, you must be extra good on the phone. You are good. So
one in 10 they're going to say that.
Srija: Yeah.
Samuel: And there's a very fair chance that they'll then accept your 20% BMV offer. Now
this is the worst case that can happen. *ring ring*
Srija: Hello?
Samuel: Hi, I'm ringing about 22 X Street, it's on for 60,000 pounds.
Srija: Yep.
Samuel: Do you know the one?
Srija: Yes.
Samuel: Awesome. Listen, I don't want to offend anybody but I'd likely to only be able to
offer 48,000 pounds. Is it worth me booking a viewing or not?
Srija: No, they're very adamant they want to stick to that number unfortunately.
Samuel: Ah, okay, no problem. Thanks.
Srija: No worries.
Samuel: Am I broker or poorer because of that?
Srija: Nah.
Samuel: Am I any weaker because of that now?
Srija: No.
Samuel: No, that's the worst than can happen. In fact, it's what you do which is really
cool, what did you say when they say no?
Srija: I just thank them for their time and I'm being honest with them and I just say,
"Look, this is the situation I'm in, I'm actually an investor, I'm looking for sort of houses
that you've got sellers that are really looking to get rid of it for whatever reason, they
might want to leave the country, they might not want the house. Do you have anyone on
your books that you know whatever the asking price is, the owners are going to say yes
to a below market value deal?"
Samuel: Boom! Yeah.
Srija: And I've had yeses from estate agents saying that, and I've had one estate agent
in particular emailing me a list straight afterwards, saying, "It's worth you seeing
them," and also just saying that she's going to go through all the books and sort of saying
that. And you really get a chance to build a rapport with them-
Samuel: Yeah, because if you don't ask, you don't get, right?
Srija: Yeah, absolutely.
Samuel: So it's great. Also, the thing that you should not do is just book a load of viewings,
and then put in loads of BMV offers. Because then you're going to offend people and lose
friends.
Srija: Yeah.
Samuel: But if you do that first, it takes like 20 seconds on the phone, then you get
a bunch of pre-qualified properties to view, and then offer on, that is a genius way to
get properties below market value.
Srija: Yeah.
Samuel: High five, Srija. BOOM. Hope to see you very soon!