In a recent video, I took a look at Liam’s investment property. 20-year-old Liam showed me round his Derby house flip where he made a clean profit of £80,000! You can watch the full video (above) for all the tips and tricks of how he did this while using hardly any of his own money. Liam showed that in business it doesn’t matter how old or young you are, it is all about what you bring to the table. If you can bring value, you will make money.
Anyone can become successful in property if they learn the right skills and work hard at applying them. If you want to do what Liam has done, you will need to put in the time to learn all about property. That said however, there are some lessons you can learn directly from this video. In this article, I will highlight 3 property lessons you can learn from Liam’s experience.
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1. Explain your value to investors
Liam didn’t have the funds to buy this property himself, so he needed an investor on board. Liam therefore had to explain his value to an investor. He was 19 at the time and many people would have used this as an excuse not to try. Liam knew however that in business it doesn’t matter about your demographic characteristics, all that matters is what you can bring to the table. Liam knew his value and how to sell it.
Liam already had his own flooring business and therefore could show his ability and work ethic. He is a member of my Academy, so he knew how to present a deal and exactly what to say. As a member of the Academy, he also had the network to find an investor. When you are getting ready to find an investor, think about what you bring to the table and what skills you can enhance.
2. Always make a very specific offer
Another thing Liam did was offer a very specific amount for the property. Most people will offer a round number such as £200,000 rather than something like £196,540. When you offer a round number, the seller is more likely to want to negotiate. When you offer a very specific amount, the seller is more likely to think there is a reason behind the number and in many cases accept.
The seller may think that is the absolute limit of your funds. They may assume that you have calculated the numbers exactly and that is the only way the deal will be profitable for you. In any event, it makes them think you have thought very carefully about your offer.
3. Have multiple exit strategies
It is important to have multiple exit strategies. If you can’t refinance, would the deal still work as a flip and vice versa? This is particularly important when dealing with investors, as they will want assurance that their money is safe.
If you need any help with getting into property; refining your exit strategies; or proving your value to investors, why not come to my next Property Investors Crash Course? You can get a free ticket here (£1 booking fee applies).