How I did it

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I'M CONSTANTLY BEING ASKED HOW

I MANAGED TO GET INVOLVED IN

PROPERTY, AND SOURCE SO MANY

BELOW MARKET VALUE DEALS.

THERE IS NO SECRET OR SPECIAL

TALENT REQUIRED......

Hello,

If you think that maybe you have to be a certain type of person in order to make this business work for you, then I would suggest that you read the following piece about myself.

The vast majority of people that I speak to accept that, in the long term at least, residential property rises in price.

Ask anyone who has owned a house for a number of years what their best financial decision was, and they will usually reply that buying the home that they live in was the best.

Even when the market dips, as it always does from time to time, people realise that things eventually recover. those temporary price setbacks are restored - and the market then goes on to climb even further.

Often with these things it pays to step back and look at the reality of a situation over a decent amount of time - rather than panic and worry when a blip occurs.

According to the Nationwide Building society House price data - since 1952, a house worth £1,890 then would now be worth £168,000 today.

OK....along the way there would have been the odd short-term setback price-wise....but in general the value has grown massively

It is worth almost 90 times what it would have sold

for then!

As far as I am aware, no one is born to be a property professional. As far as I know they don’t teach these skills at schools, colleges or even universities. The only way you are going learn them is by taking action yourself.


You can teach yourself the hard way – as I had to – by making costly and time consuming mistakes.


On the other hand you can invest in yourself and teach yourself the lucrative techniques, methods and skills that have worked so well for me

You may want to simply invest in property in a ‘conventional’ way.

What I mean by that is that you assume that you will buy properties at their current market value then wait for the increases in value – which always happen over the long term

What about a more creative – rewarding way?

On the other hand, if you are not aware of this concept already – then I’m pretty sure that you would much prefer to buy property BELOW MARKET VALUE (bmv).

Below market value obviously makes much more sense! It means that you lock in a healthy profit in your property WHEN YOU BUY – then benefit again later when you sell your property in years to come!

You make 2 sets of profits effectively!

You will also, if you are going to rent out your bargain property, benefit from monthly positive cashflow – if you copy the way that I do things.

What is positive monthly cashflow?

OK, I guess its industry jargon for monthly profits!

It's the term used to indicate the money you have left over each month after the mortgage on the property being rented out had been paid for out of the rent that the tenant pays you each month.

If the rent is £500 and the mortgage is £300 – then you have £200 gross profit, or positive monthly cashflow. You should expect to have to pay some expenses from time to time to pay from this gross profit - but if you buy correctly you will end up with money in your pocket at the end of each month.

Alternatively you may want to buy a property BELOW MARKET VALUE and simply resell it at around its true market value immediately – and take an instant profit?

It’s up to you – the important thing is that you

don’t (never, ever) pay the ‘going rate’ – that is for

amateur buyers!

However, please continue to read this profile of myself first – and maybe you can relate to some of the things that I talk about.


You will develop skills and learn knowledge that will help you to find and identify opportunities (the marketing) and, more importantly, to capitalise on them (negotiation/persuasion)


How do I know all of this?


I know because, I have taught myself the skills through trial and error over the last ten years or so. In fact, I have been actually, unbeknown to me, learning these skills over the course of my working life, not really knowing that eventually –now - they would all come together one day to serve me well in this niche business sector.

Probably more importantly than this fact – I have taught numerous other ordinary people,like myself,  possibly like you, to copy exactly the same thing too.

You may think that having therefore coached all of these people - then I have therefore created lots of competition for you – all before you have even started in this business!


Let me clarify matters for you……..


The number of people, who I have trained previously, is, on one hand a reasonable number, but on the other hand it is a ‘drop in the ocean’ when you consider the size of the UK, and the number of opportunities out there.


There are around 23 million houses in the UK currently…..


We only need, collectively, the tiniest fraction of those to have owners who HAVE to sell their properties below market value for this business model to offer you vast wealth gains.


Surely that’s enough for everyone to have a fair

slice of the cake?


I also have to state that not all of the people whom I have passed my valuable information on to have done much with it.


There are a number who have let apathy get in the way of their plans and who couldn’t, to be blunt, be bothered to make a go of things.

It’s like ‘learning’ to lose weight….


This happens in lots of situations in life. My favourite analogy though is with a business like Weightwatchers. We all know the fundamentals in losing weight – yet Weightwatchers and other similar organisations throughout the world have made millions by ‘coaching’ people to do something that they already know how to do!


Two people, let’s say 3 stones overweight each, sign up in January and want to lose, let’s say, 3 stones each.

Simple enough.


The following December, one person has lost maybe 4 stones, and yet the other has gained an extra stone.


So now – one person is 5 stones heavier than their friend – yet they both weighed the same at the start of the year!


They both received the same valuable information and support about losing weight…..


It’s just that one of them had a better ATTITUDE.

As I say, I have experienced this with my students from time to time.

My most successful student has gone on record publicly in admitting that he has sourced over 200 below market value properties since copying me. Yet, there are a number of my students who have paid tu copy me – and simply used the manual that they receive as a door stop!

The same information – used in different ways……

It’s so frustrating for me when this happens – but it sometimes does!


In any event, regardless of how many competitors you have (and there will not be anywhere as many as you think), what is really important is how good you are -compared to them.

I can show you how to become, and behave, like a professional…..a professional who always makes large wealth gains when they agree to buy a property


As you will read shortly, when I came into this business and researched the competition that I would have to contend with, I quickly realised that they were mainly ‘business dinosaurs’.

They had poor marketing, negotiation and people skills…..to name just a few of their weaknesses

I couldn’t believe my luck that I had stumbled in such an unprofessional, yet highly lucrative niche market!


Just because someone has been in business for20 years, it doesn’t mean they will be better or more successful than a switched on, focused, enthusiastic, professional new-starter.

Many of these dinosaurs turned out to be ‘lazy opportunists with cash’ who were prepared to buy houses for cash, refurbish them and ‘turn them round’ for a quick profit.
There’s nothing wrong in that – good luck to them, but to me, following my research, it was obvious that their tactics and approaches were a little hap-hazard – to say the least

I knew that I could improve upon what they were already doing....

The opportunity that this niche market offered cried out for a more refined, simpler and sustainable business-like approach


If you do come into this business, and copy me,then it may surprise you to know that you will not, totally, be in the property business.


You will be in the marketing business!


Marketing will drive you forward, and get you where you plan to go! It will make the difference in your success that you need in order to maximise your wealth.

Great marketing finds your property bargains


So, how did this all start for me?


Well, quite simply, like many people in the past, I ‘stumbled’ into the world of property – and in particular the world of buying residential property at massive discounts with positive cash flow too.


Nowadays, property investment is, for many, a defined career choice. It is something that people decide to ‘get into’ and have a plan to do so. This has probably been driven by the massive attention given to property in the media over the last 5 years or more. Everyday we see property related programmes on TV, and numerous articles in the printed media too.


However, in my experience, the vast majority of newcomers pay the business the biggest disservice possible. They simply decide to get into the industry with little or no preparation or real thought.


If they were for instance setting up a business, let’s say a retail shop, which may make them a wage -  possibly £25,000 per year (probably less), then I am certain they would treat it seriously and research it thoroughly before starting. Then they would commence with the hard work and commitment  required to set it up and make it work properly.

Quite rightly too....

All that for probably just a’ living wage’ - doing a full-time job. probably 6, maybe 7, days each and every week


However, for some strange reason, I find that many people who decide to get into this incredibly lucrative industry simply ‘dive in’ and think that they can make a fortune from it ‘off the cuff’.

This is, in my mind, incredibly naive – bordering on insanity.


In boom times – when prices are rising, their naivety can be compensated for by the market covering up their mistakes. They can make money just by paying full market price – and waiting, and whilst I consider paying anywhere near full market price as stupid (at any stage of the property market cycle), it is true that money can be made by fools in a rising market. I’ve seen it happen.



Their naivety ‘gets them’ in the end though……


Their problems begin – and many are finding this now – as a result of the global financial meltdown – when prices start to fall – as they always doing in property price cycles. Prices move in cycles – but over time have ALWAYS increased massively.

If you pay too much for a property – especially just before a price correction in the market begins – then you can have massive problems – especially if your plan was to sell on the house immediately. That’s why I teach people to buy at embarrassingly low prices – every single time!

Many ‘amateurs’ have fled the industry, either by choice or by necessity recently because of this phenomenon.

They get scared or simply confused about what is happening- and then try to look for the ‘next big thing’ that will make them their fortune. This is great news for committed, long-term professionals – as it gets rid of these amateurs who often ‘muddied the waters’ previously.

It’s similar to the forces of nature taking place in the industry

Ask anyone who you know, who has owned a house for 10 years or more, if they wish that they had bought the one next door at the same time that they bought theirs!


I think that you know what most peoples reply to that will be!

Should you decide to copy me in some way, then you will have chosen to' inves't your money, as opposed to ‘spend’ your money, already – in your property education.

An education investment means just that – it is not money spent – it is money invested for a financial return.

Its also tax deductable too against your property profits!


When I bought my first investment property I committed the cardinal sin.


This was when I realised I needed to invest in my education…quickly.


I paid full market price for it!


At least it had decent monthly positive cash flow (remember?.....the profit from the rent after the mortgage has been paid) – but nowadays I want both – an equity gain on day one and positive monthly cashflow. ..and the capital growth over the years too!

I had yet to become savvy and realise that the most important factor in buying a property (or anything come to that) along with the need for positive monthly cash flow – is to always buy low – each and every single time!

I didn't even realise that there would be people in my town who would sell considerably below market value!


‘You make your money when you buy!’


This is a well know saying with property professionals. Most amateurs buy at full market vale – then wait, and wait and wait…..and hope too.


I don’t do that – I buy well below market value.

I still wait – i can't magically 'rush' time - but I have already been compensated at the beginning for waiting - by buying so cheaply.


I already have a profit – and will take a second profit over time – as prices rise. You must be aware that prices of houses do not rise in a consistent, linear fashion – as in being proved now

 I am currently taking advantage of the market ‘correction’ by paying around 55% of the market value of houses 12 months previously!

So, I would buy a property that was worth 100k 12 months ago for around 55k now.

However, prices do rise over time.

The dynamicsof the UK pont firmly towards a consistent rise in property prices over the coming years

Look at the facts.....

• The UK population is growing by around 400,000 people each year. Equivalent to a city the size of Cardiff

• The Government acknowledge that we must build at least 250,000 new houses each year to ensure a future housing crisis is averted

• The Housing Federation have recently indicated that only 87,000 houses were built in the UK in 2008 - there will be even less in 2009 - as cautious builders cease building more houses until things improve.

• Even in 2007 (when house building was at maximum capacity) only 165,000 houses were built in the UK

• There is an undeniable obsession with property in Britain. People are nurtured to buy 'bricks and mortar' - meaning demand will increase - along with the population. even those who don't want to buy - have to rent!
  

Snowball effect…..

These fundamental supply problems will ‘snowball’ and become as massive issue soon.


Supply of houses will not keep up with demand – even if the population remains static at today’s levels – which it wont


Often, when someone asks me what I do for a living, I tell them that I collect houses.

Why?


Because, that is exactly what I do.


I collect houses for future exploitation. Because I know that the housing situation in this crowded island on which we live is going to get much worse very quickly – based on the facts that my research uncovers – therefore, this is my motivation to do what I do.


I can afford to be patient about this


Why?

Because I’m doing ok already!

Because, I have the following…..

· Houses that I bought below market value (BMV) – which had equity in them from day one.

· A monthly positive cashflow after mortgage and other expenses are paid for.

· Therefore a healthy cash surplus in order to easily fund  any repairs and void periods – leaving me with a  monthly surplus

· A commodity that is going to be more scarce as time progresses – and therefore more valuable to me.


Hopefully, you can see why someone like me is totally relaxed about investing in property for the long-term.

Media slant…..


We professionals have a different slant on things than the ones often painted by the media.


Traditionally over the last 60 years property has

tended to double in price every 10 years. That

equates to an average of around 7% compounding

each year.

Ups and downs……

It isn’t a linear, consistent growth, there can be falls, as now, but over time, patience rewards the patient. When there are falls this is when they professionals get greedy

As the renowned American investor Warren Buffett said…..


‘When the masses are greedy - be frightened, but when the masses are frightened – be greedy!’


See for yourself…..


According to the Nationwide Building Society’s UK house price analysis since 1952, a property worth £1,900 in 1952 was worth £189,000 in 2007!

OK, it’s slipped a little temporarily at present – but that will change.


So let’s look at an example of a house I buy today for say £100,000 that is really worth £145,000. Last year it was probably worth around £175,000


This represents a discount against today’s price of around 30% (about 55% of last years peak price!). It is not a remarkable discount by any means – I have negotiated price keener than this!

Don’t worry it might seem unbelievable to you– remember you are, if you come on board going to be coached by me how to do this very soon! If you come on board you will soon learn to adopt a different context in your mind about what is possible in this business.


Let’s look at the figures…..


Assume the property increases in value only 5% on average each year (not the typical 7% over time)…lets be cautious here…for ten years


In ten years time it would be worth around £225,000!


That means that my total gain would be £125,000!


It would have been ‘only’ a gain of £80,000 had I paid full market value for it. However my negotiated discount of £45,000 is very much an added bonus!


I will have also rented out the house at a profit during that time – making a monthly profit from day one – and raised the rent by around 3 - 5% annually too – whilst finance costs (mortgages) would have remained static - as I would have fixed my rates in order to ensure that I had control over my profits.

Rising income combined with static costs – a perfect business model.


A rent of say £700 per month with finance costs of £500 per month initially – would change over time as follows….


At the end of year 10 the rent would be around £1100 per month by applying a 5% compound growth – with borrowing costs the same – if I chose to fix my rates – which, as previously mentioned, is obviously the sensible thing to do.

However…back to how I got started


Forgive me. I digress….


Remember, I paid full market value for my very first property?


Big mistake!


However, to be fair to me, that property is now worth over double the price I paid for it – even by paying full market value! Because patience has rewarded me.

At the time I owned a very successful distribution company, which, whilst it provided well for me and my family, it was very demanding - and was very old fashioned, in my opinion, in as much as it required lots of hard work and attention, and did not give me what I really wanted – namely an income and a wealth building opportunity where I could work smart - and not hard – in the old fashioned, accepted way that the majority of people do every day in order to earn money.

I had to go out every day and invest my time into making money. If I stopped - i would have eventually had problems!

I believe it's called 'working!'

Prior to this I was employed, albeit in a secure, well-paid job. I eventually, like many people; I began to yearn to be my own boss, ideally with financial freedom also.


This was to basically, ‘sack my boss’, and then increase my wealth – without doing too much hard work!


So initially, I leapt from the Rat Race of employment into, what turned out to be, the Rat Race of self-employment – which can be, and is for many the worst of the 2 situations.

For many self-employed people working in traditional businesses (manufacturing, retail etc) they find themselves with none of the benefits of employment (security, no financial commitment, the ability to change jobs at will), yet have the drawbacks of running their own business (sales worries, cash issues, staff problems etc)


It took me 2 steps to get from employment to ‘working smart’ in this business niche…..

My first property deal that I stumbled upon was the spark that started everything….and from that point onwards I was obsessive about exploiting that fact to my advantage, and atthe same time – finding a buyer for my distribution business – as I now knew where my real future lay!


I had seen the light!


Ironically, it took me 18 months to find a buyer for my business – that was because I was searching for a good offer for it! I eventually sold it for around 50% more than what I considered to be a fair price! However, I now think back and see that it would probably have been more lucrative for me, long-term, if I had let the business go at a knock down price early on. This would have allowed me to focus fully on property over a year earlier than I eventually did!


So....I became fascinated by the notion of buying bargain property… and waiting.


Whilst waiting the 18 months for my sale to conclude, I started to ‘put together’ the beginnings of what became the business model that I use today… my ‘system’.

I was fortunate in having lots of experience in direct marketing and sales from my previous occupations. This would form the basis of my new venture.

I think it is important that you realise that I wasn’t a property expert. I knew that I didn’t have to be one.

Marketing would be the key to this business…that, and having the

ability to get along with people. The skills I lacked

(conveyancing/mortgage broking/handyman etc.) were skills that I

could either learn myself, or more probably, ‘buy-in’ when needed.


I researched the concept of ‘hunting’ for bargain properties with positive cash flow, to the ‘nth’ degree and knew that it was where my future lay.

Many doubting Thomases (friends and acquaintances) told me, in a caring way, that I was crazy to ‘jump’ into property. However, they didn’t have the benefit of my incredibly thorough research that I had carried out for months previously.

I didn't let their inbuilt fears influence me.

It’s funny, but no one tells me it was a crazy decision these days.


Many of these doubting Thomases still go to work each day and still have a boss to answer to – but they were intent on giving me their advice all those years ago.


At the time, I asked myself why I should take financial advice, albeit well meaning advice, from people who hadn’t displayed a great track record in that area in their lives to date.


Basically…if you buy property (and wait)…it tends to go up in value!

Simple really – and if you buy it very cheaply – even better!

If you find someone to pay the mortgage - and some more each month too (the tenant)…..then even better still!


So rather then wait (procrastinate) …and then buy a property ‘one day’ (sound familiar?) …..I bought a property….. THEN I waited.


Then curiosity got a hold of me…..


I soon started to ask myself ‘what if I could buy these houses for less than they were actually worth?’

 

In the same way other traders, like antique dealers and car dealers operate….they buy at x and sell at x plus y.......


Like buying £10 notes for £9


In other words, if I bought a £100,000 house for £90,000, then I had just made myself the easiest £10,000 wealth gain I would ever make!

I figured that with the 2 million or so houses sold each year in the UK, surely a tiny percentage of these sellers would be desperate to sell a little cheaply in exchange for a fast sale.

So desperate that they could not wait the typical 4 months that it took (then) to sell via an Estate Agent. It’s taking much, much longer to sell presently.


I then thought, ‘what if I could find, say, just 4 people per year near where I live who would take such a discount in exchange for a fast professional sale in order to solve a problem in their life’


Then I thought, why accept a 10% discount? Why not hunt so extensively and deeply that I get to ‘cherry pick’ situations where the sellers will be so desperate to sell (for whatever reason – there are dozens of reasons) that I could find discounts of 25% plus?


At, say a £25,000 discount each on average – then with only 4 small deals I would increase my personal wealth by £100,000 – just by being persistent and finding these people! And, if the rent covered the mortgage – AND put a healthy amount of cash in my pocket each month too – then how could I possibly lose?


Surely there must be 4 people, or more near where I live who fit this criteria?


And near where you live now!

I’m completely certain of it…..

In fact I would put money on that!


As I mentioned previously, I researched the market, and discovered that some people were buying houses this way already – but in a very unprofessional, hap-hazard way that really wasn’t a sustainable business model as far as I was concerned – I decided that it could most certainly be improved upon.


So that’s what I did.


I began with my marketing system that flushed desperate sellers ‘out of the woodwork’ – and got them speaking to me.

I ‘got inside their head’ and discovered their problems…..


Then I became a problem solver……


I found that those people who would consider a discounted deal wanted to solve a problem in their life. The need to sell the property quickly was the ‘root’ of that problem.

If I could buy that property from them quickly at a price that they could afford to take – then we both won!


And, whilst most people refused to accept my low offers - I bought a good number of houses at bargain prices!


I simply then played the ‘numbers game’.

I achieved my target of 4 heavily discounted properties with 4 months! All because of me applying my marketing, listening, problem solving and negotiation skills to a particular situation.

These ‘skills’ as I have proved with my previous students, are all easily teachable. They are mainly ‘common-sense’.

There is no hard selling involved when dealing with enquirers – in fact

I don’t sell…I tell!

I simply explain to people how I can help to solve their problem – and hope that they can afford to take my offer – and are desperate enough to do so.


I then went on to refine and improve my new system over time through my experiences and lessons learnt (and the, more than, odd mistake being corrected ‘here and there’), until it served me as it does today.


Another opportunity…….


I then went on to develop my message to appeal to people who needed to sell their homes, usually, for financial reasons, but didn’t want to leave the house that they lived in and loved. This was the start of my ‘Sale and rent Back’ business. I had negotiated a deal on a heavily discounted house – with a guaranteed tenant who paid my mortgage AND MORE from day one!


I soon became ‘greedy’ and instead of buying properties for around 80% of their true market value, I consistently decreased my offers.

Nowadays I very rarely pay more than 65% of a properties true value. I’m very careful, and not desperate to buy a house at any more than this. It must have a high discount and good positive monthly cash flow – otherwise I am not interested.

OK, when the market eventually ‘bottoms out’ and begins to climb again, I will probably be prepared to pay a little more % wise – safe in the knowledge that prices are rising again. Until then – I am being cautious with my offers.


  I can afford to be – I can afford to only buy when everything about the deal is right for me – otherwise I won’t bother.

I have taken the ‘you make your money when you buy’ concept to an extreme, and I can assure you that with the right approach, to the right people, at the right time, combined with the right skills, then you too can achieve these results - simply by copying what I do.


To date I have concluded over 100 heavily discounted ‘Below market Value’ (BMV), cash positive deals using this tried and tested simple system.

 Some I have sold, (‘flipped’) to make an instant profit, some I have passed on to other investors – maybe because the opportunity was out of my geographic area (I insist on having the properties that I own close to me geographically – it makes for an easy life long term that way!).

The remainder I have kept for my own portfolio. By the way, when you pass deals to other investors (something that I will teach you – you benefit from charging lucrative ‘finders fees’ – this is the industry norm). Its another very lucrative 'stand-alone' income stream - for very little work.


I also, very conservatively, estimate that my students have bought well over 1000 houses between them also in the last 5 years - since I have been coaching people in this way.

Whilst it’s now obvious to me that I had all the necessary skills to make the concept work, I am fully aware that these skills don’t require you to be a genius, or a business mastermind. I just ‘worked backwards; from where I wanted to be. I made plenty mistakes – some quite costly, but I rectified and learned from them.


I can now offer you the opportunity to do the same thing – but without the costly mistakes that I made – and paid for!

Thanks for taking the time to read this

Regards

Greg