Building Relationships with Estate Agents to Find Great Property Deals
I am fortunate as my JV partners grew up in Manchester and have a portfolio of approx 50 properties. This was a great way to start relationships. Relationships are made over time. These property relationships are cemented by doing what you say you will do….buying without a mortgage….working quickly…buying properties that others do not have the knowledge to refurbish. Due to these relationships we are able to get some unbelievable deals even in today’s mad Manchester property market. For example, my JV partners found a property in which we will make a social housing HMO on a 5 year contract. It will be a 4 bed….extremely close to a hospital. We are in the process of conveying this property under 70,000. A complete steal in today’s market. The property will generate 11,960 with no management…no voids…and maintenance covered up to 5,000. Yes we will have to refurbish it, possibly 15k or slightly more…however this is a home run in which my family will keep. This is one is an outlier however establishing relationships you become the first call when a property comes to market. The estate agent knows you are serious…that they have sold you other properties…they know you communicate…basically you make their job easier.
Last week we had a property that was offered to us from an estate agent. She told us, it had some structural issues…ie the front wall was bulging. We sent out our builders as well as surveyor to determine the extent or lack of movement. They jointly determined a solution and double checked with building regs…Being responsive…checking things thoroughly….and building that so important relationship with the estate agent….we all prosper….
Take this points into consideration…Do what you say you will…give all the facts…for example at times we have delayed conveyance because one of our builders time did not finish the prior project….we were open with the agent and promised to close end of month…Property is all about relationships and keeping ones word…Look at the big picture. Do not chase the short term money.
Had an episode yesterday of an extremely unethical gentleman who bought some properties from us and then thought he could copy our model and even use our builders. His office even had the dare to call to ask questions yesterday….This is the last thing you want to do in property…it is a small world and everyone knows everyone….I related the story to a colleague about this gent and his company. He also had a very bad experience with him and stated he would not trust his daughters dirty nappies with him…
Basically not good relationship building….