Today I am going to be teaching you how to source off market property deals to add to your portfolio at large discounts with just a four-sentence tool!
I will explain exactly how to source off market deals at large discounts at the best time in over a decade so you can build your property dreams and in the next 2 years you can create a passive property income of £50,000 a year regardless of where your starting point is.
There are 2 main things you need to have at the table to successfully invest in property. You need to have plenty of money coming in to buy and you need loads of deals. If you have lots of money to be able to buy the deals and you have loads of the correct world class deals, then you can build your portfolio to the size you want to build it to!
You might be wondering well who is Aran Curry and what does he know?
Well, my business; The Insight Group, has a done-for-you service where in the last decade we’ve bought over 1300 properties for our clients, investors, and ourselves. We currently buy 400 to 500 properties a year, that’s 30 to 40 properties a month. We look at 100 million pounds worth of property a month so we know exactly where the market is and we know what’s going on.
So, how do we get all the property flowing to us? We use something that I call ‘property identity’.
Property identity can also be used to raise private finance, you can read more about this on our recent blog ‘The 30-Second Tool To Raise £100k In Private Finance’.
A property identity has 4 specific key component’s:
- What do you bring to the table: This could be time, money, or experience.
- Build your piece: Brag a little! Explain what your skills are.
- What are you looking for: Clearly state exactly what you are wanting from others.
- Location: Explain the specific location of the deals you want.
Let me show you below an example of property identity that I created back in 2012 that enabled me to source a deal of 237 properties in 1 portfolio!
‘My name is Aran and I specialise in Family Lets. We have funds to purchase 200+ properties and the expertise to get it done. We need sellers of large portfolios who will take a 10% discount to sell fast. Do you know anyone like that?’
This property identity very clearly states everything I was after. It explains that we have the money and the expertise to get it done but we need sellers of large portfolios and only at a 20% discount.
It so clear that after reading, someone can easily and quickly say whether they are interested or not and even if they know of someone else!
So, what happened with this property identity?
I took this property identity back in 2012 and I started posting it out there. Now my team at the time we had about 40 orders on our books that’s 40 clients that wanted to buy a property. I started asking for 200 plus properties in the property identity and my team thought I was crazy. They were panicking saying “This is crazy, what are we going to do if someone comes with loads”. I just said let’s worry about that later, we can find the money, lets just find the deals then we will find the money.
We started posting this property identity everywhere asking for 200 plus properties. So, what do we attract? The world gives you what you ask for, so we get a portfolio sent through of 237, we got another of 97 and we got another of 28; they’re all piling in!
The portfolio of 237 we nearly ended up buying, it was to buy a whole village to bring in for my clients but that didn’t quite work out as they wouldn’t give me the discount that I wanted. We always want great deals in the right areas, but we always want to negotiate hard as well!
The portfolio I did buy was for 28 properties. When I first put the property identity out there, they came to us and said ‘Hey, I know you’re looking for 200 plus properties I don’t suppose you’d be interested in just the 28.” Now notice the language in there, they are almost apologising for bringing us the 28 even though we were asking for 200 but of course we were extremely interested in the 28!
We end up negotiating on that deal and the deal was for 7-year-old properties that the builder has built but they’ve not been able to sell them. So, they’d kept them and hit some financial difficulties, so they wanted to sell them on quickly.
We negotiated a 25% discount on 28 different properties (you’re not going to get that these days!). This was a game changer, its absolutely amazing we’ve just sourced 28 properties in 1 deal!
By the way, negotiating on 28 properties doesn’t take a lot longer than it takes on 1. In fact, often when you negotiate on bigger deals, you are dealing with people who are used to making big business decisions so they make them much faster.
This deal of 28 properties made my business over £300,000 in profit and my clients between £15,000 – £20,000 of profit each all because of the 4-sentence property identity tool!
Author: Aran Curry