He said NO to free money! | The Property Pitch – Episode 2

I am back, providing investment capital to my viewers. I have a series on my new YouTube channel (Undercover Millionaire) called The Property Pitch. The second episode is now out and you can watch the full video above. I would recommend watching the video until the end, as you can learn a lot about how to present your own property deals to investors.

In the article about episode one of The Property Pitch I gave you 3 things to consider when making a pitch to investors. In this article, I will give you 3 more things to consider. If you haven’t read the first article, and watched the first episode, you can find them here. I would recommend watching episode 1, and reading the accompanying article, before moving on to episode 2.

1. If a deal is too big for you, sell it to someone else

The first pitch was for a development site. While the pitcher might not have been able to manage a project this size herself, she had found a potentially good deal. Rather than simply passing up the opportunity, she offered the deal for sale. We agreed a £12k finder's fee to be paid on completion and both sides walked away happy.

If you find a good deal that doesn’t suit you personally, you can always find someone that it does suit. Packaging and selling deals is a great way to bring in excellent cashflow that you can use to invest in your own deals. When looking at deals always consider whether someone else might want it, even if you are not in a position to act on it yourself. The more you serve others, the more you are rewarded. That is the basis of capitalism.

2. Pitch your best deals

The second pitch we had was for a 3 bed house. The pitcher had already told me about another deal which was much better. I offered to invest in that deal instead of the deal he was pitching me, but he turned down the money.

When pitching to investors, put your best foot forward by offering them your best deals. You want to build a relationship with your investors and for them to be excited to invest with you. This is particularly true when dealing with an experienced property investor. Remember an experienced investor can bring a lot to the table and they will be offered a lot of deals on a regular basis. Offer them your best deals and stand out from the crowd!

3. Don’t pitch a deal you wouldn’t accept yourself

The final pitch was a Buy, Refurbish, Refinance, Rent (BRRR) deal on a lease option agreement. The pitcher wanted to split the profits for 5 years after which the property would become his entirely. I switched it up and suggested that we keep the property after 5 years instead. Of course, he immediately turned that down! Luckily, he was flexible and we did come to a deal in the end.

Always consider what you are offering from the other person's perspective. If you wouldn’t accept what you are offering, you can’t expect anyone else to. Be reasonable in your ask and be flexible in your negotiations. Follow this rule and you will find making a deal much easier.

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