What You Need To Know About Property Deal Flow?
We currently have 2 large portfolios we’re progressing and room for a small numbers of JV partners that want a great return on their investment! Amazing right? People only want to hear about amazing deals coming off and success stories, right? Well, not always. It’s great to share news of deals, but I believe people want authenticity and that means hearing about the deals that don’t come off and the lessons learnt along the way. There are lots of deals that fall through, anyone that says different isn’t being authentic.
So what’s my recent experience? Well we recently lost a large Holiday Let in the Lake District because the numbers didn’t add up after we investigated, we also backed out from X2 HMO the day before exchange & completion a couple of months ago when the due diligence threw up a last minute issue! So lots learnt from those experiences, so I thought I’d summarise. Below is by no means an exhaustive list, but here are seven key points to keep front of mind along your property investing journey:

1. Know your numbers. You need to develop the skill to evaluate a deal quickly against your own criteria such as ROI, Gross Yield etc. 

2. Don’t get emotionally attached. If you lose a deal you won’t stay down and disappointed (you don’t want to miss the next opportunity)

3. Become a master juggler. Have multiple deals to consider at the same time, knowing that they won’t all land. 

4. Have layers to the deal. A decision to proceed with a deal can’t be based solely on the most optimistic outcome playing out. You need the deal to work on the base case and then have additional opportunities that make it even better if they come off. 

5. Be clear about the audience. Be clear on the kind of properties/sites that meet your range of criteria, and you know the input activity required to uncover the kind of deals you seek.

6. Failing fast is good. Getting to a no decision on a potential deal should be a mini victory – it refines your analysis skills, validates what you really want from a deal and get you a step closer to the good deals.

7. Have s system. Working to a well designed system for your pipeline is key and within that keeping a record of your deals. You will shortlist and analyse a lot of deals but you never know, one may just come back round and present an opportunity to acquire cheaper/or create more value than you previously expected.

It’s not that you’re only as good as your last deal, it’s more that you’re only as good as your deal flow! 

As I said at the start, we are currently processing two large portfolio transactions before the end of June and have room for a small number of investors that want a great return on their investment so reach out to find out more information.