You may remember I interviewed Charlotte and Shyheim from deal sourcing business, High Living Estates, on Winners on a Wednesday about 12 months ago. In a recent video for my YouTube channel, I went back to see how they are getting on. They now have: their own shop in Birmingham; multiple members of staff; and are pulling in £20,000 a month in profit! The couple started with practically nothing, are very young, and had no previous experience. I am very impressed with their progress!
Anyone that becomes a property investor or a property entrepreneur has lessons to teach. Each person approaches property in a slightly different way. Everyone comes to the property industry from a different starting point in life. In this article, I will give you 3 lessons to learn from Charlotte and Shyheim’s unique property journey. Please also watch the full video (above) until the end, as it contains important information for anyone getting started in property.
1. A physical location builds trust
While many deal sourcing businesses are strictly online, Charlotte and Shyheim have found that having a physical store front builds trust. They told me about a time when a customer was unsure about paying the deposit. They noticed them drive past the building and moments later they paid the money. Seeing a physical location can help people perceive you as more of a ‘real business’ that they feel more comfortable interacting with.
It is important to note, however, it is perfectly possible to run deal sourcing businesses from home. Whether a physical location is needed or not, will depend on you and your specific approach. If you are solely online, you can build trust in other ways, such as documenting your journey.
2. Clear terms and conditions are important in deal sourcing
In deal sourcing, things can go wrong. Sometimes deals fall through, and this can lead to unhappy investors. It is important to have clear terms and conditions that both you and your investor can refer to. Not every deal sourcing business will deal with the same situation in the same way, but as long as the investor understands the rules, there should be no issues down the line.
It is, of course, important to be flexible. Keeping a great reputation means offering excellent customer service. But it is also essential to be clear about what your obligations are under the contract and what is a ‘good will’ gesture on your part.
3. Support if things do go wrong
If there is a disagreement between you and an investor, it is important to have the help of a third-party body. Therefore, being signed up to some sort of dispute resolution scheme is very important. Seeing that you are a member of such a body also shows new investors that you are a serious business looking to act professionally.
Charlotte and Shyheim’s business, High Living Estates, is signed up with my organisation The Property Investors Mediation Service (PIMS). The PIMS independent organisation provides redress and mediation for property investors and property entrepreneurs in certain sectors, such as rent-to-rents, deal sourcing and joint ventures. This means when things go wrong, there is someone to offer support to both the business and the investor.
If you would like to learn more about property and deal sourcing, why not book on to the Property Investors Crash Course?
On the course, you will learn how to:
Become a property investor using other people’s money so that you can get started straight away
Utilise the 5 different types of raised finance so that you know exactly what to offer and when
Find the perfect properties for the BRR strategy
Recycle your money so that you can ‘rinse and repeat’
Build a power team you can trust, so that you can save time and money
And much more!
Tickets are only £1, and you can get yours here!