Hi. It's Samuel Leeds here, and in this video, I'm going to be giving you some absolute golden
nuggets to how you can find properties heavily below market value.
You might hear professional investors always using the term BMV, which stands for Below
Market Value. And the very first thing, and this is really, really important, if you're
looking to buy discounted properties, if you're looking to get a really good deal, then what
you need to be doing is you need to be finding motivated sellers and not being a motivated
buyer. The very worst thing that you can be is a motivated buyer, someone who is really
desperate, because you've just watched Homes Under the Hammer, and you're like, "Oh, I
really want to buy a house", and you've got money in the bank and you're really motivated
and you get really excited. Maybe you fall in love with a property that you see on the
market and you think, "Oh my gosh. That's so nice. That'd make such a good investment
property", and then you get emotionally attached. When emotions are high, intelligence is low
and when you are a motivated buyer, you are going to end up paying over the odds, so instead,
you need to be a cool, calm and collected investor, finding and working with motivated
sellers.
So how do you find motivated sellers? And why would someone be in a position where they're
prepared to pass you their house, 10, 20, 30% below the true market value? Well, there's
many reasons who these people might be. It might be that they are maybe going through
a problem. They might just be having divorce. You know, I came across one lady who was selling
the house at such a low price, just to spite her ex-husband, because they own the house
together. Now it's nuts, it's crazy and we don't know what the reasons might be necessarily.
People sometimes think, "Oh, you're taking advantage of the vulnerable. You're finding
people in desperate situations". No, not at all. We're not putting anyone in any bad situations.
What we're doing is we're finding them in a particular situation, and then we're giving
them what they want.
It might be that they've found their dream home and they're about to move to Florida,
and in order to get their dream home, they need to sell their house, and they're prepared
to sell it fast for a discounted price, because they need a certain amount of money, in order
to move on and do what they're doing. It might be that they're about to go repossessed and
the bank is going to take the house off them and they're going to loose the house, because
they can't pay the mortgage, and you've going to buy it off them, and although you're buying
it at a real discount, which is great, for them, it's the lesser of two evils. So you're
actually helping them, this isn't about exploiting people, this is about you running a business,
trying to get bargain properties and finding people where it's actually a win-win.
And of course, they might not be in the best situation in the world, but it's going to
be the lesser of two evils and you buying it off them at a discounted rate is better
than the other option, so that's the key. Be cool, calm and collected, find motivated
sellers.
So how do you find these types of motivated sellers? Well, they're everywhere. You can
find them online, you can go on ... I really love a website called Gumtree. What I like
to do is go on Gumtree. If they're selling their house on Gumtree, they've got to be
pretty motivated, because come on, who puts their house on Gumtree for sale? So what I
do is I look for properties on Gumtree and I search from oldest listed and I find all
the properties that have been on Gumtree for months, or maybe even years, that they can't
sell and I'll just phone them up and say, "Hey, why can't you sell this house? What
is the problem?". Find out their issue, find out why they can't say what the problem is,
and then see if I can overcome that.
So that's one way, Gumtree. Next is, tell everybody what you do. Tell the world that
you are a property investor. Put on your Facebook that you are ... maybe you say, "I'm not a
property investor, I'm a plumber.", no, no. You're a plumber and property investor. Tell
the world that you're looking to buy properties. And then what will happen is ... I mean, I
get between 20 and 30 messages a day on social media, from people that are stuck or they've
got a property they need to get rid of, just because everyone knows that I'm a property
investor. So tell the world that you are a property investor.
Number three, build relationships with estate agents. I think that a good relationship with
an agent is a lot better than a good deal, because if you've got a good relationship
with an estate agent, they going to potentially be able pass you all the best properties before
they even go on the market. So make friends with estate agents, take them out for coffee,
show them that you're serious. If you've got thumbs in pies, show them. Show them that
you're financially qualified. Tell them what you're looking for.
So there's just a few ways that you can find motivated sellers and get your foot in the
door to get in these types of deals. So there's just a few ways, but there's many more. And
the more motivated sellers that you're dealing with at one given time, the less motivated
you'll be, because you've got lots of choices. So it's going to mean you can get even better
deals.
Now once you've found these potential properties, you've found these motivated sellers, how
are we going to secure this property at such a good bargain price? Well, here's my tip
for you. First thing you need to do is you need to find out, not what the asking price
is ... many amateur investors get mixed up between the market value and the asking price.
They could be asking for a million pounds for the property, it might only be worth 100,000
pounds. So what the seller is asking for is irrelevant. You need to be able to work out
what the true current market value is on the house.
Now we run something called The Property Investors Crash Course, where we show you how to value
any house. One of the ways that we teach this through, one of the ways is we teach you to
look at what has sold, not what's selling, but what's sold in the street recently that
is similar. And you can do that for free on Rightmove, by looking at the House Prices
tab at the top of rightmove.co.uk.
So once you know what the current true market value is on the property, you're then going
to be able to say, "Okay, the house is worth £100,000. I want to buy it for £80,000",
or whatever it is that you might want to buy it for. Now, never put the offer in first.
If you're speaking to the vendor direct, always make them give the first figure, because for
all you know, it might be on for £100,000, but they might be selling it for £65,000.
So if you go in and say, I'll give you £80,000 you've paid over the odds of what you could've
paid. So always make them give the first figure. So don't go in and say, "I'll give you £80,000
how does that sound?", or, "I'll give you £90,000", or whatever. Say to them, "If I
was to give you cash tomorrow, what would be the absolute lowest you would accept and
still live with?", and then just shut up until they speak. You don't know what they're going
to say. If they say, "Oh, well it's on for £100,000 I'll accept £99,000", then there's
no point offering £60,000. But if you offer £80,000 and they would've accepted 60, then
you're screwed as well, so let them always put the figure in first. So what would be
lowest you could accept and still live with? Wait for them to speak.
Now if they absolutely will not give you a figure and they're just like, "Well, what
will you offer?", always try make them offer first, but if they absolutely will not, then
put in an offer that you are embarrassed with, okay? Like a really embarrassing offer, because
if they want £80,000 and it's on for £100,000 and you come out and say £60,000 they go,
"Hah! No.", you've not lost anything, apart from just maybe looking a little bit cooked
for it or whatever, but you've not lost anything.
So find what the true current market value is, make them put the first figure in first
and the thirdly, if you have to put the figure in first, do an embarrassingly low figure.
Once you've secured a property like that, it might take you 20 hours to find one property
like that, half a week, but if you manage to get £20,000 or £30,000 off the true market
value of a property in 20 hours, that's like more than £1,000 an hour that you've been
paid in equity. So I think it really pays to try and get a discounted bargain properties
and of course, you want to make sure the rental is good as well, to make sure that it stacks.
I've done other videos on that. You can check above here, just above on this video.
If you can't buy the property and they accept and you're like, "Oh my goodness. I've just
had an offer accepted of £60,000 and it's worth £100,000, but I can't buy it", then
who do you know that can? Who could lend you the money? Maybe you could do a joint venture?
Or maybe you could pass that deal onto somebody else and charge a finder's fee. I tell you
something, if you found a property that was worth £100,000 and you got it for £60,000
I'd pay you £5,000, £10,000 for it. There's many things you can do. The world is your
oyster when you know how to find good property deals like that.
I hope that's been helpful. Please do subscribe below if it has. And don't forget to smash
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