Transcription
A team, welcome to your Wednesday dose of wealth wisdom with me, Daniel Kennedy, your gracious host. Allow me to feel a moment of your time as I share these videos. Today's topic was requested by a wealth dragon student, and that is how to get BMV deals from an estate agent.
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That's one I should be some saw about why I could just post it to multiple places. If you haven't already, I advise you to go back and listen to the last free episodes that give you a really basic overview of developments and the stages of a development. Some things that is a useful for anybody doing any kind of work because you might need building works, for example. Right now, I think that means we're good to go. So allow me to start the podcast recording.
Mm, hello and welcome to your Wednesday dose of wealth wisdom with me, Daniel Kennedy, your host, wealth dragon coach, and KML CEO, and home hog CMO, CES, Sela, CEOs. Today's topic is gonna be, oh, I've got the wrong thing there, huh? For goodness sake, I'll change it later. It's not gonna be if, how, and when the builders should not pay. It's how to get BMV deals from an estate agent.
So the first thing you need to realize when dealing with estate agents is that, just like you, just like me, they're people. And most people seem to forget about this. So the moment that you go in there and you say, "I'm an investor, I want to bug deals," it usually puts them off because they hear that quite a lot. And a good piece of advice that I would give is, don't bother stating your investor. Just go to viewings, put your office in, and turn up on time. And slowly but surely, over the course of many, many viewings, you'll begin to build up relationships with the same ones. And then potentially divulge what you're doing. I.E., if you're starting out, that means to source.
So, can you source directly from an estate agent? Well, yes, I've done it, and so from multiple other people. And when people question if they should pay a sourcing fee, what they're paying for is your local knowledge, your research, your ability to know where it's a good deal or a bad deal. And if you're very scarce, the danger is that you could saw somebody a really bad deal. So only source people deals you would do yourself. Typically, how you want to do is build up a really big pipeline. And occasionally more deals come in then you could possibly do. But you're still doing deals, and that's the reason why you're sorting on. If you wouldn't buy the deal, it's very, very unfair for you to source it to somebody else because you're not going to last in a business that revolves around people trusting you and people knowing what your kind of deals are, maybe you have a good reputation or not.
So I'm just editing the title. Yes, stay right there. We go. Sorry about that. So going up to various different estate agents and trying to schedule a meeting or say, "I want to talk," it's just a massive waste of their time. Jump along to viewings because that they don't care that there's there to sell properties and they should be too busy to sit down with people, I'm in my, my opinion. And you don't want to go in and waste of time and spending all available free time when you should be sourcing yourself directly, spending time with estate agents and chatting. You want to just go to the viewings, put your offers in, and then when the offers come in, make sure that you follow through. So if you become known as somebody who doesn't just put slow offers on, you just completely waste everyone's time, you'll struggle to get viewings and you'll struggle to build the relationships up. Just by purely doing what you say you're gonna do, turn and got put in the office in and then going through with the purchases, you'll become the go-to person.
So for me, in my area, it's a very small area of three estate agents that know that I'm looking to buy in a very, very small area because I view everything that's there and I offer up on everything that's there. When something comes up, they don't even put it up, they give me a call, get me around. And sometimes they won't even let other people view it until the owner accepts my offer. That has happened. They'll say, "Listen, this guy's, this is the best you're gonna get. Trust me, you're not gonna get this an offer higher than this." And they just work from de Sept and they accept that. That has happened. And that is because we buy up the deals that we say we're gonna buy. And that sometimes means that you may have to follow through if you haven't done your numbers right. As if you back out, the moment you're back out, and you become somebody who doesn't follow through on the word, if you've said you're gonna buy it, you said you're gonna do all this number of things, and you don't follow through, and you're not quickly your proof of funds, you're not quick with your paperwork, it's just a noise for them to chase you.
So make sure you have all your paperwork in order as well when you go to purchasing the BMV deals from the estate agent because if you haven't got all your paperwork in order, you can often lose the deal. And knowing that there's no way you can do creative finance without going through an estate agent. So the moment you purchase it, say, even if it the market value is 200, the moment you purchase it at 170, if that becomes the market value, so it ceases to be a Blvd l', that's something that you have to be aware of. And so the only deals that I would potentially get for an estate agent or your flips, the ones that you need to refurb and then sell and then go on sort of like go on like that. Because if you've got a property in good condition and you're getting it BMV, you're not going to be able to refinance the funds out in six months' time if you haven't done any major works. There's no lender, well, you might be able to, but you're going to struggle. So you can't really get BMV deals so I'm gonna stay aged. And that's the bottom line.
Well, I know the title says how to get BM videos. We'll say it's a bit of a non-starter because, as I said, once you buy it for that below market price, that becomes the the price unless you flip it. But it's all about keeping and maintaining relationships as well. You've got to, even if you're not planning on offering, it's a good habit. Just, just you keep viewing, keep you and see what's coming up on the market. See if they can get you, you can build a relationship where the estate agents will call you. And you will have this really, really magic Condor moment where they'll be one day where they'll call you, "I've got someone coming on, do you want to pop round and have a look at it before it goes up?" And then you know you've made it. And that's just by constantly being in the area. This is why I'm really big advocate of staying in one area, going to the state same agents, go into the same people, go into the same rental renters who are offloading stock, whatever the case may be. Just deal seem to float your way when you're in that network. And estate agents, especially, well, sometimes like, like for instance, there's a mistake a jet that I use who sometimes goes to her estate agent and says, "I know somebody who would like this. How about we split the commission and just take it off? Let me call him." And since that has happened for somebody who have done that to me, gone to a different estate agent, knows that I'm going to like this kind of deal, and they've kept it for me. And that's purely by me when I'm on viewings being really friendly, being really, may not being a novice, having a massive ego. He actually talks. I'm not gonna say the name because it's a good contact. But this is a state agent that gives me loads of deals. He's in the army, so I leveraged off the old boys network. And he tells me about these really arrogant investors that he struggles to deal with. Even if he knows there's a property that they like, you won't call them like because he just can't be asked with the hassle. Like he's on a salary job, he gets very little commission in terms of what is what he gets paid when he sells a deal. It doesn't matter what if he sells her or not, that the impact is very my new. He gets up at nine and he leaves. He gets when work at nine, he leaves at five. And he just wants a nice time. So if you can make it fun and become this person's friend, they will call. Excuse me, they will call you up before it goes on to market. And this is how we got a deal that we're gonna do a 16 bed on. And Mosley, in the purchase price is only three hundred and twenty thousand pounds. It's absolutely insane. You just would not get a deal like that off anybody. You have to really cultivate that relationship.
So have all your documents ready, be really like, be on the end of a phone, be ready to go in view, do what you say you're gonna do. I want to keep saying like that's such a key trait and key habit that you need to cultivate and hold yourself to that real high standard. Don't treat them like dirt because that you'd be surprised at how much arrogance and huge ego that they have to deal with every day. And when you have somebody who just comes up and is a very normal person, who isn't that sort of like weird, needy, friendly type because you're trying to get something from the person, you also comments about those type of people where you know they're only being nice and you can see it's sort of an ear. Finding an agent that you get on with and just constantly view, constantly be professional, make a make a friendship out of it. And also be completely and totally honest.
One thing that nearly lost in fact, oh, what's his name, blur, another big wall. You need to pay the house. So if you, even if you go around the estate agent, which under somebody who did this, who got brought unto a deal by this person, and then went round the back of the estate agent, contacted the owner, and the estate agent knows immediately because they're planning at 1:00 in. And every time I speak to their state agent, he mentions how much this pissed him off. Every single time. Even like it happened maybe eight months ago, and the person went around the estate agent, and now this estate agent will never let him view anything. And and this is a really, really big chain, and his name get spotted register, and he's got a lot of work to build that relationship book. And I'll be very surprised if he's not watching today. Yeah, like the first thing he says, "I just can't believe he did it. I cannot believe he did it." And for nothing really, it's it doesn't really affect the person in any negative way, but it was just the principle. It really, really pissed him off. And his sort of like, hold yourself to a really high moral character. Now, if what I would have done in that situation is so told the person, say, "Listen, I'm going to the owner because I want to do something creative. If I buy it, and if he takes it off the market, and it, everything goes through, I will still give you the commission because you wouldn't have had that property brought to you if it wasn't for this person or this agent. And it's only fair that you pay the house. If you don't pay the house, you'll get one or two deals, burn all your relationships, and no one will deal with you in that area again. Trust me, I can guarantee you, you'll get known for somebody who's really sneaky and sneaky and not to work with. And very often, the people don't realize the ramifications of not paying the house. And I mean that in every shape or form or industry. Now, if you've been brought onto somebody and you try and circumnavigate the saucer, that you're gonna get known for somebody as not to work with, not to trust. So make sure always, always, always you're completely transparent. So if you want to go around the back of the agent, you tell them and say, "Listen, I'd like to speak to the owner about something creative here," or "I'd like to speak to the owner about potentially doing a delayed completion or accepting an offer and getting a lease option while you put it for a planning." And I've actually got one of those for an estate agent, but it's taught unfortunately, it fell through because it turned out he didn't actually own the land that he told the estate agent he owned. So which is probably why he was so keen to do a, yeah, sure, that's fine, whatever.
And so, just in summary, if you're dealing with agents, be honest, transparent, don't be late, turn up on time, be consistent, be really, really consistent. Make sure you've got all your admin in order because that pisses them off as well, is when they're having to chase people. "Where's your paperwork? Where's your ID? I should bank statements. Where's your proof of rajala?" It's really, really, really annoying when they then get the solicitor saying, "Where's the Memorandum of Sale?" and they have to say, "We're waiting for your client." Believe you get their paperwork in. And because so many deals fall through because they won't start marketing until they get that paperwork through. So make sure you've got that down to a tee. And also, when it comes to an estate agents, make sure that when you're say wanting really large properties and you're wanting so that you've got your model, whatever the case may be, that you're not viewing absolutely everything and like taking up the agents time all day because that will annoy them as well. Although I save you often, I mean sporadically, only the deals that you want, and then they'll get a feel for what you need. And soon you'll start to get the calls. And I've just seen their liked it. And it'll be very easy. Like in the beginning, the first deals always the hardest. The first relationship you build over the state agent is really difficult. The first sort of project that you get off the ground is really difficult. But when you get to a really nice medium and you do it honestly and you do it consistently, it's gonna take you a few years to get there. No, it doesn't happen overnight. What will happen is I'll have this really great ecosystem of deals coming to you from the various agents. And very often, you won't even need to source because you get all these deals come maybe from there Net landlord landlord connections within the area, maybe they're different estate agents that know that you're buying. So they know it's a quick easy sell if they can get their property from the agent over the road. And you'll have a really, really great ecosystem. And there'll be certain moments where they'll have stock that they just want to get rid of, and they'll just do anything to get rid of. And they'll come to you and they say, "Listen, I know it's not your sort of remit, I know it's not your usual model, but would you be interested?" And those are property for 1.1 million. So this is the offer. The owner was wanting to get rid of it really, really desperately. And he got offered to us for three hundred and fifty thousand pounds if we'd accept it. And so now we're doing the due diligence process of potentially taking on a site. They live trying to sell it. It isn't even worth three hundred and fifty thousand, I I think personally. But we're doing the due diligence of a potential site that was being marketed for a million. And this all comes from being consistently and honest, being transparent, being completely open, and not trying to circumnavigate the house because I know it's tempting. But you've got to think of the money long term rather than the money tomorrow. The the extra say ten grand or five grand and seller might give you off, he doesn't have to pay the fees of the estate agent. It's not worth the burning of the bridges with that with that company because obviously they all speak to regional, but they're all competitors. And I'm sure that they'll talk about the people who try and go around the house. So make sure you pay the house. Make sure that you're being honest and consistent. Make sure that you're always being seen. So don't just drop off the face of the earth. I'd be really, really sort of active a few days and then go away for a few months. Tain the same area if you're wanting to get deals from an estate agent and build those relationships.
Now, they don't mind you sourcing their deals, is what I found. They just like people to sell. So if I'm, even if it's on the market for free, and you go around, I've found that I can say, "Listen, this is the numbers we're talking about. This is why I could get it for an investor. Is it worth me trying to find somebody to buy it?" And very often, they'll be really happy for your efforts. And just completely honest, say, "I'll be representing them and I'll be charging them a fee." And they don't mind because it's a win-win. And I've sourced from an estate agent for those of you who have asked the question. I found it very easy. I charge a grand Arun when I saw it saucer HMO. And I've sourced a seven-bit, and the buyer has bought it seven grand. And and I would a hundred percent do that deal as well. If he didn't want to purchase it, I would a hundred percent step in and do it myself. But we're doing quite a bit here and there. And that's sort of would the sort of economy of the deals that come my way. And their deals that I'm trying to source on myself would have got too much on. And that should be your case as well. So be consistent, be honest, be open. I've said this a few times, and be transparent. That's all you need to do.
And remember that when you buy from an estate agent, you you negate any BMV like because that is now the market value unless it needs really major works to get it up to spec. Like you might as well wipe that number or wipe that lessers from your vocabulary because now that is the market value. And very, very unlikely in six months' time when you can refinance it, you'll pull out all your funds. So just to manage your expectations. Anybody tells you that it's probably trying to sell you a course. And there are ways you can do it, but it's not through an estate agent. Right.
If you've got any questions, do let me know. I know I've got one comment. I'm not gonna bother try to look at it because I always get lost. And then certainly there's like ten minutes of the video that's wasted. And but please click the links below to see the previous episodes. It's absolutely gold mines of content. Now, this is sort of a culmination of four years starting from sourcing where I have no money and I was poor as to getting a bit of money, doing a really, really good deal, and then kind of nearly losing all it off when I got a bit cocky on the second deal, and then slowly building it up a much slower, more steady pace, testing your measuring racket should have been in the first place. So have a read back, and I hope this answers your questions and my opinion on how to get deals from an estate you.