Samuel: My name’s Samuel Leeds, and on this
video I’m going to be showing you exactly how you can find properties 20% below market
value, and more, every single day. Samuel: Now previously in the past, I’ve talked
about how return on investment is the thing you really should be looking for. Don’t worry
about whether it’s below market value. Now, I’ve changed very slightly, because right
now in 2018, there’s so much opportunity to find deals 20% below market value. So I say,
if you can get both, 20% below market value and a minimum of 20% return on investment,
that is really where the money is at. Samuel: And also, it’s very easy to find properties
that are 20% below market value. So here is how you do it. Step on, the properties that
you’re going to be looking for below market value, you also want them to be getting high
return. Properties that give you a high return typically are properties that you buy low.
Reason is, if you’ve got a house that’s 500,000 pounds, the rent is not that much more than
a property that’s 100,000 pounds. The correlation is not quite there. So you’re going to be
looking for properties that are quite cheap. Samuel: So you’re going to go to Right Move
right now, you’ve got to do this, because the results will just astonish you. Go to
Right Move, and you’re going to search in an area north of Birmingham for properties
priced between 50 and let’s say 70,000 pounds. So 50 to 70,000 pounds. You’ll search 40 mile
radius, and you’ll find there are thousands and thousands of these properties. Now, rather
than searching from lowest or highest price on Right Move, you’re going to search from
oldest listed. Oldest listed means they’re probably quite motivated. Look at the properties,
and you can very easily value a property by looking at what others sold for on this street,
and get an idea. So check the asking price is also the same as the market value. Samuel: Once you’ve done that, you’re going
to then ring up the estate agent. This is the scary bit, the oh my gosh, I’ve actually
got to call an agent. Yes. In order to make money, in order to get results, you need to
a little bit of work. You’re going to call the agent, and I’m going to give you the words
exactly that you must say when you call the agent. So, the first thing you must say is
this. You’re going to say, “Hi agent, I’m ringing about the property on Church Road
for 50,000 pounds. Do you know the one?” Now the reason you’re going to say, “Do you know
the one,” is because what amateur investors do is they start spouting off about, “Oh,
I’m going to make this offer and I wanted to … ” and the person they’re talking to
could be the mortgage broker who happened to just pick up the phone. Samuel: So 32 Church Road, selling for 50,000
pounds, do you know the one? “Yeah, I know the one, how can I help?” Great. Then you’re
going to say, and these are the magic words, okay? So it’s on for 50,000 pounds. You’re
going to say, “Okay, now look, I don’t want to offend anybody, but I can probably only
afford to pay for that house about 40,000 pounds.” By the way, that’s 20% below market
value. “About 40,000 pounds. I don’t want to offend anybody, so is it worth me making
a viewing or not?” And at that point, if they say, “Yeah, it is worth you making a viewing,”
they can’t then moan at you when you put an offer in of 20% below market value. Samuel: In fact, if they say, “Yes, it is
worth you making a viewing,” there’s a very good chance that the estate agent knows that
the vendor will take that offer. You spend a day doing that, and then book a day of viewings
where you’ll view like 10 houses, which have all been pre-qualified BNV, offer 20% below
market value on all of them, and let’s say out of 10 you get five, you just bought five
properties 20% below market value. Samuel: What do you then do with those houses?
Well, you can buy them and maybe, I don’t know, refinance them potentially. Potentially.
Or you could pass them on to an investor for a fee, make sure you’re compliant if you’re
going to do that. But that’s how you can find below market deals. Samuel: So best case, when you ring up is
the … Srija, she’s one of my students, come on Srija, come and sit down a second, we’re
going to role play this right now. So you can see exactly how this looks. By the way
Srija- Srija: Hi. Samuel: How old are you? Srija: I’m 25. Samuel: 25 years old, and you’re an academy
member. Srija: I am. Samuel: And you’re absolutely smashing at
the moment. Srija: Thank you. Samuel: How many deals have you done in the
last month? Srija: I’ve done two. Samuel: Two property deals in the last two
months. No, in the last month. And when you were at the deal finding extravaganza, we
did this exercise, right? Srija: Yes. Samuel: And there was lots of deals being
found this way. Srija: Oh my god, yeah. Samuel: Yeah. Srija: Within 45 minutes as a team we found
at least five. Samuel: At least five, I think it was more
than thought. Srija: Yeah. Samuel: Within 45 minutes, so this really
works. So this is the best case scenario. Okay, so *ring ring* Srija: Hello? Samuel: Hi, I’m ringing about Church Street,
it’s on for £60,000, do you know the one? Srija: Oh yeah, yeah, I’m working on that
myself. Samuel: Great, best case scenario, well Srija.
Yeah, it’s on for £60,000, now I’m going to work out what 20% below 60 is, which would
be £12,000… £48,000, okay, so it’s on for £60,000, listen, I don’t want to offend
anybody, but I’d likely to be only able to offer around about 48,000 pounds for that
house. I know that’s below the market value, but is it worth me booking a viewing or not? Srija: Yeah, absolutely, definitely. Samuel: Really? Srija: I’ll say though the sellers are quite
motivated. They want to move out of the country, so… Samuel: Oh, awesome. In that case I’ve got
a day on Tuesday where I’m going to be doing some viewings, is it available to view on
Tuesday? Srija: Yeah, yeah, absolutely. Samuel: Bingo! Now how often does that happen? Srija: For myself, maybe one in seven, one
in eight. Samuel: Okay, I say one in 10, you must be
extra good on the phone. You are good. So one in 10 they’re going to say that. Srija: Yeah. Samuel: And there’s a very fair chance that
they’ll then accept your 20% BMV offer. Now this is the worst case that can happen. *ring
ring* Srija: Hello? Samuel: Hi, I’m ringing about 22 X Street,
it’s on for 60,000 pounds. Srija: Yep. Samuel: Do you know the one? Srija: Yes. Samuel: Awesome. Listen, I don’t want to offend
anybody but I’d likely to only be able to offer 48,000 pounds. Is it worth me booking
a viewing or not? Srija: No, they’re very adamant they want
to stick to that number unfortunately. Samuel: Ah, okay, no problem. Thanks. Srija: No worries. Samuel: Am I broker or poorer because of that? Srija: Nah. Samuel: Am I any weaker because of that now? Srija: No. Samuel: No, that’s the worst than can happen.
In fact, it’s what you do which is really cool, what did you say when they say no? Srija: I just thank them for their time and
I’m being honest with them and I just say, “Look, this is the situation I’m in, I’m actually
an investor, I’m looking for sort of houses that you’ve got sellers that are really looking
to get rid of it for whatever reason, they might want to leave the country, they might
not want the house. Do you have anyone on your books that you know whatever the asking
price is, the owners are going to say yes to a below market value deal?” Samuel: Boom! Yeah. Srija: And I’ve had yeses from estate agents
saying that, and I’ve had one estate agent in particular emailing me a list straight
afterwards, saying, “It’s worth you seeing them,” and also just saying that she’s going
to go through all the books and sort of saying that. And you really get a chance to build
a rapport with them- Samuel: Yeah, because if you don’t ask, you
don’t get, right? Srija: Yeah, absolutely. Samuel: So it’s great. Also, the thing that
you should not do is just book a load of viewings, and then put in loads of BMV offers. Because
then you’re going to offend people and lose friends. Srija: Yeah. Samuel: But if you do that first, it takes
like 20 seconds on the phone, then you get a bunch of pre-qualified properties to view,
and then offer on, that is a genius way to get properties below market value. Srija: Yeah. Samuel: High five, Srija. BOOM. Hope to see
you very soon!