Leaflets Arrived & Ready To Start Marketing Campaign!

My batch of 10,000 leaflets has arrived, I’m pleased with the look of them and am going to start calling people on my list of distributors tomorrow morning. I now have a list of 44 people who’ve applied to deliver the leaflets after posting an advert on ‘Gumtree’.

I have also hand written 30 A5 bright coloured cards to put into shop windows. After enquiring in a couple of shops today I found that the cost works out to about £2.00 per month per card. Most shops will let you use post cards and some A5 / A4, therefore I’ve made an assortment of sizes.

My advert aimed at motivated sellers will be published in the local paper this Thursday, Friday and Saturday. I’ve noticed there are 4 other property investors who seem to advertise regularly, all saying more or less the same thing, so I’m trying a slightly different approach…..we’ll see how it goes!  

The fact that the same investors seem to advertise regularly in the local paper must mean that it’s worth their while? It’s certainly less hassle than organising the leaflet distribution, but is it more cost effective in the long run? Well that’s what I’m trying to find out.

I’m intending to give it at least a month to see how each strategy fares then compare cost per lead and cost per conversion (well I’m hoping there’ll be conversions!). As I’ve previously distributed flyers I’m expecting around one call per thousand, but again that depends on a lot of factors, primarily the leaflet design.

Negotiating with vendors is something I enjoy, so I’m not worried about that side of it, which is fortunate as converting the leads is the hard part of course! It’s important to build rapport and trust if you’re going to be competing with god knows how many other companies, and people are more likely to trust someone they actually ‘like’, so spending some time getting to know them and finding out about their situation is more important than banging on about the market value and size of their property etc.

If people like you, they remember you, and a couple of times I’ve been called back several months after the first meeting with a vendor simply because I’d taken the time to listen to what they needed, offered more than one solution to their problems (people like to have more than one option if possible, it gives them some ‘control’ back) and if they decided they couldn’t accept my offer at the time I simply wished them well and said they could call me back any time and I’d be happy to give them advice.

I actually received a call on Sunday from a lady I’ll call ‘Mary’ who I’d spoken to last September (6 months ago) who had inherited her Fathers house along with 3 of her siblings in Loughborough (not far from where I live) At the time I went over to meet her and look at the property which was a 3 bed terrace, in need of some refurbishment, her Father had lived there all his life and wasn;t much into DIY. It had been on the market for around 3 months but hadn’t had much interest – probably because it was priced too high. I spent a good hour there, chatting to her about all sorts and practically knew her life story by the time I left!

Without going into all the details, I made her an offer on an option intending to find a first time buyer to purchase the property which she was quite keen on doing, but after speaking with her siblings she decided she was going to leave it on the market and ‘see how it went’.

Mary called me on Sunday saying the house had still not sold and she’d taken it off the market as she hadn’t had any viewings for weeks, even though she’d reduced the price a couple of times (bloody useless Estate Agents lol) and ‘was I still interested in buying it?’ She said she’d called me – even though she’d had a couple of other investors contact her after me – because she felt I’d treated her fairly and I ‘seemed like a nice person’ and ‘could I help her?’

Without going into all the details, I’ve spoken with her a couple of times and given her a couple of options that may be suitable to her, including an option to purchase the property quickly, no survey and all solicitor fees paid (with the help of an investor friend of mine) I think if it was just down to her then she would accept, however, she has to consult with her siblings, so I’ve left it with her for now and asked her to call me back when she’s made a decision. I’ll let you know if I get a call back but if people really aren’t willing (or can’t) accept your offer then you have to respect this and move on.

Anyway, I’m going to sit down with a glass of wine now and ‘chill out’ for an hour before bedtime…so ‘bye for now and speak soon, when hopefully I’ll be able to tell you how my campaign is going 🙂

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Armchair Property Investment. Is It for You?

What is ‘Armchair Investment’?

People choose to invest their money in many ways, ultimately hoping for a good return on their investment.  ‘Armchair Investment’ is another way of doing this, and simply put means that your money is invested with a company that  looks after your interests on your behalf with minimum input from yourself, leaving you free to get on with your life (and reap the benefits in later years!)

Obviously there are many fields you can choose to invest in but lets look at investing in property and how armchair investment features in this.

Why invest in property anyway?

The news is always full of doom and gloom regarding the property market which can be very off putting for someone who might be thinking of investing first time, and people tend to get carried away with the bad news instead of looking at the ‘bigger picture.’

On average and according to trend, property prices double every 7-10 years. (you can see this on the graph below)

Graph showing average house price increases from 1983 to present day

Yes, there’s an element of risk when you invest in anything but as the saying goes ‘nothing ventured, nothing gained’ so you need be aware and take calculated risks based on the current market.

We will always have ‘dips’ and ‘peaks’ where property prices plummet and then rise again, and in the ‘dips’ some people can find themselves in negative equity.  

This can happen when they’ve  bought or re-mortgaged just before the dip, as unfortunately no one can predict when this is likely to happen.

I don’t profess to be an expert on the property market but I can read a graph! So lets look at the ‘bigger picture’.  If you look at this graph you’ll see that although there have been ‘dips’ in house prices over the years, on average prices still double every ten years or so:

So if you had bought a property in 1983 for £30,000, even though prices started to dip in 1992 you can see that 10 years later in 1993 the value of the property had still risen to £60,000 (so it had doubled in value) and in 2003 it had risen to £120,000! (doubled again)

You can see that prices started to dip just after 2008 when the last reccession started, so if you were unlucky enough to buy a property then you may find yourself in negative equity today if you bought at full market value.

BUT even if you had bought at full value, as long as you’re not intending to sell the property right away, then eventually its value will rise again.

If you can, it’s best to buy property below market value but not everyone knows how to do this.

 House prices WILL rise again in the long term, so, despite the current property climate and all the negativity surrounding the subject, property is still one of the best ways to invest your money to be sure of a good return in the future as long as you intend to hold on to it long term.

Some people prefer to do their own ‘legwork’ when buying a property. This is great if you have the time, ability and the knowledge to do this. This would involve:

  • Advertising
  • Sourcing the property
  • Dealing and negotiating with Estate Agents
  • Negotiating with the vendor (seller)
  • Knowing how to assess the ‘condition’ of the property and spot building defects
  • Understanding the current property market and doing your own due diligence
  • Knowing the area you’re buying in
  • Knowing the property is in a good rental area
  • Applying for a mortgage
  • Dealing with brokers, solicitors and surveyors (and their fees)
  • Having the time to ‘chase’ the case’ to completion
  • Refurbishing the property to a good standard and having access to tradesmen to do this
  • Paying the mortgage until the refurbishment is done
  • Finding a tenant yourself or finding a reputable lettings agency to do it for you
  • Making sure the tenant is credit checked and referenced
  • Providing an AST (Assured Shorthold Tenancy) document for the tenant
  • Providing a detailed inventory stating the condition of the interior
  • Making sure the rent is paid regularly
  • Visiting the property regularly to ensure it’s being ‘looked after’ by the tenant
  • Dealing with maintenance problems and ensuring that any issues are resolved
  • Chasing the tenant for late payments
  • Knowing how to deal with an eviction if the need arises

These are just some of the things you need to be able to deal with when you decide to use the ‘hands on’ approach to property investment.  Of course this also involves using finance by way of fees and refurbishment but by far the biggest problem for most people is having the TIME to do it!

What are the benefits of  ‘Armchair Investment’?

If you realise the potential of property investment but aren’t the type of person who’s  happy with the ‘DIY’ approach, or you’re not sure how to go about it,  or just don’t have the time to do it all yourself then you should consider Armchair Investment.

If you have an idea of how much you want to invest and where, then an Armchair Investment company will do the rest. They will generally find you ‘below market value’ property and sometimes manage it for you.

Up to now I’ve preferred to source my own property and be ‘hands on’ and there has been some negative press in the past regarding some unscrupulous companies so I was quite sceptical about the idea of armchair investment.

That was until I spoke to a guy called Colin Parker who has a property investment company in the North East called ONE PORTFOLIO.  I first heard of Colin about a year ago after he answered some of my many questions on the Tycoons property forum (can’t remember which question – there were so many!) he was very helpful and I noticed he had a good reputation and was well respected by the other members.

I spoke to Colin on the ‘phone regarding a deal I was contemplating and he gave me some sound advice. After speaking with him for a while I discovered he offered an Armchair Investment service which he told me a little about, however I wasn’t really interested because as I’ve said, I was quite sceptical at the time.

I then spoke with him a couple of months ago and he invited me up to Newcastle to meet himself and his wife Karen who jointly run the company.

Like a lot of people, I thought properties in the North were all run down and the areas were in a state of disrepair and this was why property up there was cheaper. I couldn’t have been more wrong!

Myself with Colin and Karen Parker

First of all, I found that Colin and Karen Parker were very welcoming, warm and down to earth people. They are honest, hard working and proud that they offer a second to none investment service, but the one thing that stood out to me was their genuinely ethical approach to their investors.

They have built their company by showing respect and listening to what their clients actually WANT and their reputation for providing a great service is growing fast.

Most BMV companies will provide you with a property that’s 15-25% below market value and charge you a ‘finders fee’ (around 2 – 10 thousand pounds depending on whether the deal has been ‘packaged’ or not)

However, you have to be quick because these properties are sent out to everyone on the companies list. There’s no ‘having a look’  at the property before hand or getting your money back if the surveyor down values it!

Also, once these BMV companies have sold you a deal then that’s it, they walk away, and the rest is up to you! There’s no guarantees that it will stack, or that it will rent, or that it doesn’t need a lot of money spending to refurbish it.

If you were going to source property yourself, where would you look and why?  Well of course you’d look in your own area, because you’d know that area well, you’d know which are the good and the bad bits, you’d know whether the property was below market value and you’d know whether or not it was a good rental area and if you could find a tennant quickly.

Which is why ONEPORTFOLIO only source property in their own area in the North East, because they know this area like the back of their hand and they know which properties will provide great investments to their clients. In fact they’ve been doing it for years!

Why would you want to invest in the North East?

Contrary to belief, properties ‘up North’ are not all run -down shacks, and it’s not all cobbled streets and mass unemployment!

A lot of investors  from London and the surrounding areas choose to invest in the north because properties are  lot cheaper there and of course the yields are higher.

They’ve found that as long as they get the properties at a good price, they cash flow well and they’re managed well they can have a ‘hands off’ approach and most of them never even see the properties, they don’t need to!

Considering it was November when I went up to visit them it was cold, but the sky was blue and clear and Colin and Karen gave me a tour around the areas they buy property in.  Newcastle, Middlesborough, Sunderland and the surrounding areas, and I was pleasantly surprised at how neat and tidy the streets were and how much regeneration was going on.

As we were driving around Colin was giving a commentary on the history of the area, pointing out properties they’d bought for investors, talking about the regeneration projects and answering any objections I had. It was clear he knew his area very well indeed and I was very impressed with his knowledge and also his obvious passion for the area.

Properties sourced are valued between £50,000 and £150,000 and are purchased for between £40,000 and £120,000.  All properties can be purchased using buy to let finance so an investor would require a deposit of 20-25% of the purchase price. The typical investment required is around £20,000.

I loved Newcastle, it’s an amazing place with some great architecture. I took some photos of the types of property sourced by ONEPORTFOLIO and other landmarks whilst we were driving around:

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What ONEPORTFOLIO do is provide a personal service which is great value for money. Obviously there’s a lot that goes into making this a good service, but to keep it short, basically here’s what they offer:

  • You get a free one to one consultation with Colin who will invite you to have a look around the area so you can discuss your investment requirements and see the type of properties they source.
  • ALL properties offered will be GUARANTEED 20% below market.
  • When a property comes up that matches your requirements you will be offered it personally with a 12 page report on the property, it’s condition, rental & market value comparables, photographs, floor plans and any refurbishment that may be required.
  • If you decide to purchase, the mortgage will be arranged for you and a solicitor instructed on your behalf
  • A fully independent RICS survey will be instructed
  • On completion of the sale, if required, the property will undergo a FULL refurbishment.
  • ALL properties undergo a 192 point check list to make sure they are ready for renting and comply with safety regulations (Gas certificates etc)
  • A tenant will be found under strict guidelines, they will be credit checked and referenced thoroughly.
  • The property will be fully managed for you, so if there’s any problems with maintenance etc it will be dealt with swiftly.
  • NGU Lettings currently looks after 370+ properties for it’s investors.
  • All this leaves you to get on with your life – stress free!

Some Armchair Investment companies have asked up to £37,000 for this type of service but ONEPORTFOLIO require a reservation fee to show you are commited of just £485  (which is fully refundable if you change your mind)  Then a further payment of £4,500 on completion of the sale.

So the total arrangement fee is just £4,985 which includes ALL legal fees  (survey & solicitor) AND it includes a full refurbishment of the property if it’s required.

Their full managment service is just 10% of the monthly rental fee.

If you can find another reliable company that offers a service that’s better than this then please let me know!

After our drive around the area, which took up most of the day, I went back to my hotel to freshen up then met up with Colin and Karen in the evening where they showed me the nightlife in Newcastle.  Or “Let’s go oot on the toon” as Colin put it haha!

Although it was now raining,the bars were buzzing with people and vibrant. There was a great atmosphere and we had a lovely evening getting to know each other then had a sumptuous chinese meal before I was dropped off at my hotel, where I slept really well after a great day with good company 🙂

I can thoroughly vouch for Colin and Karen and their company ONEPORTFOLIO, they came across as genuinely honest and sincere people who have invested a lot of time building an ethical, value for money GUARANTEED service. Indeed, many of their investors have gone on to buy more than one property with them when they’ve realised what a great service they’ve received.

ONEPORTFOLIO Established 2007
‘Armchair Investment’ At Its Best
GUARANTEED Property Discounts
GUARANTEED Rental Income
GUARANTEED Money Back Offer
You Invest – We Do The Rest!
 
 If this sounds like something you’d like to discuss further please contact me: suzanne.bates@one-portfolio.co.uk

Happy Investing!

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Learning To Be A Property Entrepreneur Can Be Fun!

Hello !

I’ve been a member of the Tycoons forum for over a year now, which is where I learnt how to find and buy below market value property and many other strategies.  AND  I’ve had great fun too!

Anyway, I was recently voted ‘Member Of  The Month’  on the Tycoons forum and as a result I’ve just had an interview with my friend and founder of the forum Parmdeep Vadesha, he also runs the Tycoon Mastermind Alliance training programme (which I finished in August this year).

 Deep is a really nice guy, genuinely very helpful and eager to help anyone wishing to succeed through property investment. Also his wife Pal helps out at all the events, she’s lovely too!

Deep and wife Pal

Whenever I have a problem with a deal I just call or text him and he talks me through it and gives me ideas on how to structure it. That’s the great thing about being  a member on the forum, you’re never on your own, there’s always someone you can discuss things with and everyone is happy to give advice.

There’s no rivalry or jealousy. Mostly we come from different areas all over the country so there’s plenty of deals to go round.  We share information readily with each other and pass leads on to each other if they’re not what we’re looking for ourselves.

I love being a part of the ‘community’ I have some good friends and have learnt so much by sharing with them all. The ‘Law of Resciprosity’ states that the more we give the more we get back. This is a big lesson I’ve learnt and practiced and believe me it works!

We’ve had some great times, barbeques at Deeps place, parties, trips to London, Morrocco (we had the most fantastic time there and I really want to go back), nice meals, a christmas party. They’ve also arranged loads of other exciting stuff  like Murder Mystery nights, a road trip to Monte Carlo in amazing ‘Super Cars’ and they’re off to Turkey TODAY. Unfortunately Mike and I couldn’t make this trip, but we’ll definitely be going next year!

Here’s some pics from Morocco and other fun stuff :

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So we’re not just learning, we’re having FUN.  Which is THE best way to learn!

Anyway here’s the interview, apologies for rambling on a bit, it’s because I was nervous. I’m better at writing than speaking! (Scroll down and click the orange tab)

http://www.property-system.com/pod/2010/10/05/how-to-make-12000-from-2-days-work-and-without-putting-any-money-down.html

Remember, to be a success at ANYTHING you have to make a start. So here’s to your new beginning and ultimate success!

Bye for Now 🙂

Suzanne

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