Three Things You Need to do Endless Property Deals

There are three things you need to have to do endless deals:

1. The asset (land or building)
2. The knowledge of how to add value
3. The money to transact

If you have all three things in abundance there is no limit to the amount of deals you can do. The reality is, very few people have all three at the same time.

Some have access to lots of money, but no idea where to find properties at the right price nor the knowledge/experience of what they need to do to extract the max value from them. Others may have years of experience with the ability to sniff out a deal - but lack the funds to take action.

A common problem I have come across is “I can’t find any “deals”?” I am often asked by those starting out in property, “what should I do?” or “where should I start”. I tell them to pick one of the three things that will help them do endless amounts of deals and become an expert.

Do you want to be the person that finds the deals? If so, be an estate/commercial agent, work for an auction house, be a land buyer for a developer. This experience will give you an insight on how to find and negotiate with property owners.

Do you want to be an expert in the value add element? If so, you should study property law, architecture, construction management, surveying etc. These skills will help you look at properties with potential in a different light.

Or, do you want to be where the money is? Having access to funds either being a lender, investor or broker will keep you busy as everyone needs access to capital to make money from real estate which is a notoriously cash intensive game.

Although you can’t be an expert at all three (or at least it will take years to master), becoming an expert in one of three plus taking and interest an being knowledgeable in all departments is the best chance you have to become successful in property.

Having worked in many property fields myself over 23 years (investor, developer, landlord, estate agent, lender and now broker), I simply do not have time to master being an architect, solicitor, planning consultant, building surveyor, contractor etc. It is, however, imperative I have a strong understanding of how all those work to minimise my risk, reduce stress and delays on projects.

Although having a strong team around you is essential, I have learnt that, in the end, as an investor, developer and landlord, I only have myself to blame if anything goes wrong.

This post was written by Merryoaks Managing Director, Saam Lowni. Connect with Saam on LinkedIn, here.

‍