Should I ask Investors for ID? | Samuel 365 Coaching call
Hi there. My name is Samuel Leeds, and I am a property investor as well as a property guide. In today's segment of Samuel 365 coaching call, I will be calling a client whose post regarding asking her investors for an ID I saw on social media and decided to ring her to discuss this further. So, let's begin.
Caller: Hi there, is that Samuel I am speaking to?
Me: Oh, hello! It sure is.
Caller: Hi Samuel, I am so sorry I was just getting some chores done
Me: That's no problem at all. Well, I actually saw a post of yours on one of my social media accounts and thought it was best if you just schedule a call so that we could discuss things a bit, and well, here we are. And since your post focused on finding investors for yourself, this is what this call is precisely about.
Caller: Oh yes, of course, but you see, the situation has developed a little ever since I sent out some email to a few people and spoke to a handful too, and one of them has gotten back to me. In fact, three investors just called me this morning wanting me to be their deal sourcer. So, now I need more like a little advice on going forward and sourcing these deals.
Me: Oh, that's even better. I can already see that you have been quite active. So, what have these investors asked for in particular?
Caller: So, these investors have asked me to look for around 250 houses for them, and they want me to be their deal sourcer.
Me: Right, so tell me this, are these investors the ones looking for these 250 houses, or have you found these deals, like people wanting to offer these houses?
Caller: Yes, so I haven't found the deals yet, but yes, the investors said that that's what they are essentially looking for.
Me: Oh okay, right! So, I personally think that your approach is the right way to go about things. As in, it is more effective to always look for the investors first and then finding them deals instead of sourcing a deal randomly and then struggling to find them, investors. So, I'd say that you're certainly on the right track but tell me something. Have you already found any deals that are ready to go because you mentioned in your post that you have a few deals ready in the bag?
Caller: So, I did send out a few emails to a few people. Some of them have gotten back to me. Hence, I just spoke to a few clients this morning. A few businesses and enterprises in the UK have requested that I look for lands for them so that they can build houses and that if I am able to find them those deals, their friends are also interested in me finding them deals, and they might also enlist my help. So, if this deal comes through, I might really hit it off. So, I just need any advice or any suggestions that you can give me to close this large deal.
Me: That sounds great, so you already have a couple of investors who are wanting to get deals from you. You also have some really decent deals in the bag, and you also have property opportunities, so what is it that you want me to do? How can I help you?
Caller: Well, to be fair, at this point, it's just, you know, me rushing into everything that's really scaring the living daylights out of me and also, of course, the fact I've never really handled such a large deal all on my own before.
Me: Right, so let's start from the very basics. So, this investor that you've been speaking to, what is he sort of looking for? Is he just looking for land that he can build 250 houses on, or is he looking for a specific net profit, or has he been specific about what he is seeking?
Caller: So the investor is actually just looking for a piece of land where he can develop 250 houses, and he said that he is interested in smaller deals in the future, but for now, it's just going to be this deal where he can get a land large enough to develop 250 houses on.
Me: Right, and where is he hoping to build these houses? Where does he want this land to be, and what sort of profits is he aiming for?
Caller: ideally, he is looking for this project to be in Manchester, and as for profits, he has not mentioned anything so far.
Me: right, so basically I am asking about watching of profit is he looking to me because of anyone can buy a piece of land and in a big house is on there but if he's a get in but not actually if he's an intelligent investor he would see what sort of money you can make on it. And then you know it's also of course about (because I've seen a lot of people experiencing this) how they say they have an investor who says he has a lot of money and you know they spend anywhere around 2,3 even four weeks looking for the perfect land and properties and deals for them only to realize that the investor is actually a deal sourcer himself or that the investor doesn't even have enough money or that he is very picky. So what I would do if I were you is that I would tell the client or your interested investor basically that I would be more than glad to look for some really good deals for him if only he could show me his proof of funds and brief me on what sort of profits he is looking to make and also don't ever forget to ask them for some kind of ID.
And if they won't provide you with any of these, then I'd say it's a significant red flag. Because actually, that's one of the very primary reasons I decided to take your call in the first place because I remember you mentioning in your post on social media that is it too much to ask people for an ID. and I thought to myself, absolutely not because if they cannot even provide you with something as basic as an ID or as a proof of funds then clearly it is not going to be easy to try and build a professional relationship with them you can't trust him. And these sorts of deals rely heavily on trust and reliability. Suppose you are not even sure whether or not you can trust an investor or a client. In that case, it will get difficult for you to do business with them. Anyway, that's not really good business practice to commit to something as huge as a property deal without asking for an ID, proof of funds, etc. So, it's always best to have these doubts cleared by asking your investors for an id
Caller: precisely because I have already experienced that. I have been in situations where investors won't show me their proof of funds, and weeks of scouting deals would just go down the drain for me.
Me: so yes, always ask for proof of funds, the amount of profits they are aiming to make, and of course, an ID before making any commitments of any sort. This will save you a lot of time, energy and of course money
Caller: Oh lord! I'm starting to get a little worried now. Are there actually too many scammers out there
Me: no, no, not scammers. I wouldn't go as far as say calling them scammers, but yes, there are a lot of time wasters I'd say
Caller: You've been a great help, Samuel. I cannot imagine where I'd be if it wasn't for the school. I have had so many of my queries clear. I've had so many of my questions answered, and I can't thank you enough, really. and I really do hope that I am able to get this deal and thank you so much for your time
Me: no, of course not. It was great chatting with you and helping you figure out what needs to be done next for you to safely close this deal. And if you do have any more queries for us, all you've got to do is book a call, and I would be glad to help you. Take care now, and good luck with your deal sourcing.
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getting good deals, or something as simple yet daunting as asking your clients
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