How to Get In With Estate Agent
I recently had my eyes on this property on Portalet Road, Liverpool so I called the agent marketing it to see if we could close a deal. Unfortunately, I learned it was no longer on the market as another agent had gotten an offer that the property owner accepted. Regardless, I kept the conversation going. After all, the goal was to find houses I could buy with cash, renovate, then sell at a profit.
But upon inquiring if there were any such properties, it would appear I was out of luck again. The agent told me none were available because as soon as they list a home for sale, an investor swoops in to take it off the market. Not to mention, it being not a peak season meant not many properties were up for sale.
However, it seemed things that were about to look up as the agent asked what my budget was. I couldn't give her a specific number or range because like I explained, I was open for any deal that could give me a reasonable profit. I did, however, mention I had a few hundreds of thousands to spend. That's when she told me of a property priced at £200,000 but which needed quite some work done, meaning the renovations costs would be rather steep.
But what of the juicier deals? How could I land those? So without beating around the bush, I asked her what I had to do to be the dude she calls whenever lucrative deals come in. “What do you need from me?” I ask. “What could I possibly do?” I persisted after she let out a short laugh. ” … It's about building trust … not letting you down half way through the sale …,” she responds.
I'm not one to mess about, so I asked her to give me a shot. “I can move really quick … I am busy and stuff … but if the price is right I'll buy it, and I'll complete fast.” So at this point, the agent asks my name, which I tell her. But she must have misheard me because she immediately calls me Daniel. “Sorry, Samuel …” I correct her while letting her know she can call me whatever she wants as long as she gives me deals.
She let out another laugh before asking if I would buy a property without viewing it first. And since I've done it before many times, I didn't hesitate to tell her I would. She proceeds to tell me of another property, which wouldn't need a lot of refurbishing. But it's what she said next that made my face light up, “… I've got 25 people waiting to go and view this property …”
But there was a catch. While the property owner was open to offers, he/she wasn't letting anyone in to view it due to the lockdown. The agent, who had been in the property, described it as a three-bedroom with a garage and located in a “really really really good area.” And according to her, it was a good bet and could fetch me around £270,000 in the current market.
What I wanted to know, however, was how much spending the property would need before reselling it. “15 … 17 grams,” the agent estimated. And with that, I did some quick math.
Buying price: £210,000
Refurbishing cost: £20,000
Selling price: £270,000
Profit (selling price – [buying price + refurbishing cost]): £40,000
I liked what I had heard so far that I was willing to drive by the property. That seemed to concern the agent a little, and she advised against going there and knocking on their door asking to view the property. I assured her I would never do that. However, I wanted to know whether we could at least get the property surveyed before buying it.
“I don't mind buying without looking … but I wouldn't want to buy it so blind that a surveyor can't even get in it cause then it could have all kinds of problems.” I let her know I'd rather I don't get to see the property before paying the amount in full, but a surveyor does. Wouldn't you agree?
She didn't give me a straight answer, understandably so, since the deciding factors were numerous. But I did learn that the property came with an exceptionally big garden, which made selling at £270,000 even more achievable. So I ended the conversation with the agent by letting her know I'd do an online inspection of the property and give her a callback.
“Let's go view it, man … we can still go on the outside and we can start crunching some numbers … we can just assume the worst and do our calculations on the case that we have to re-gut them.”
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