I am sure it would be nice to have unlimited deep pockets. I am also sure most of us would love to have the ability to do an unlimited amount of deals. However both of these could be analogous as having too much of a good thing.
How is this question
How many deals could you handle?
It is all about management. It is all about systems in place to control every aspect of your UK property real estate business. I believe that real estate success boils down to these issues
Capital
Sources of Product
Scalability
Proving these 3 points…consider this:
If there are many real estate deals available in your area, then you may need more capital to purchase them. As you purchase them, you may need more crews to rehab them, more property management resources to manage them, or more administrative help in general to track everything. As you take on more personal, you need more money and deals to feed the monster, and so on and so forth. The cycle continues.
Myself and our JV partners like to run at a consistent pace. We try not to bite off more than we can chew ( manage). On every property you will have surprises. Surprises not only take time, they take money. Regardless if you have all the money you need for deals, your real estate business starts to take on a life of its own. I have seen countless times investors who have access to unlimited amounts of money actually fall down because they can not manage the properties or manage the refurbishment.
Currently we are running 3 HMO projects and soon to convey on another 5 bed en suite in Worsely. We should be selling two properties by the end of the month. We look for GREAT deals and look for Great JV partners whom to work with. It is not all about the money. It is about growing at a consistent pace,having open discussions with your JV partners, protecting the JV partners money ( for example the JV partner owns the property or has a first charge on it) and mostly finding GREAT deals, not deals to feed the property business…
Recent Comments