Being Reliable in Property
Not sure if being reliable is just in Property or in Business in general. However building relationships and keeping your word is paramount. Our families business model is to associate and fund reliable builders and hungry, honest property developers. The key is look for a win win. We are not looking to jump from one JV partner to the next but rather build mutual trust & confidence.
It is not easy to build relationships. Too many think very short sighted. We tried to work with a group 4 years in Liverpool. We were promised the world ( yet we were skeptical as we have been in property since 1994). We were told “Leave it with me” and it was left & dropped. Building quotes were higher than they should have been ( basically trying it on to rip us off). Fast forward….their loss….Been working with a group in Manchester. We are close to over 50 deals over the last 4 years. All split 50/50 less interest on our funds. He is hard working. He finds deals….he manages the refurb ….some we keep some we sell….Nice relationship for both parties.
Through Facebook a young gent reached out to us. First for advice & then it morphed into we did a JV deal on a 5 bed ensuite. Through all the parties efforts we got a great deal on a property. The property was refurbished timely and to a nice high standard. There were a bit of slight hiccups getting tenanted as we had an internet issue. However in less than 30 days…fully let & cash flowing for all parties. More so, our JV partner sold the partner. We are in conveyance and hopefully in the coming weeks this property is done and dusted. He has presented us some other deals going forward and we are just waiting for him to tighten up the deal. Deals like this add cash flow to him in order to keep more properties. It is a win win when everyone does their part.
Being reliable means being accountable. Can not even express how many times people either want to buy our HMO properties and are not serious or simply want to pick our brains…….or simply do not follow up on phone calls….
We reached out to PIN meeting leaders in other areas in order to try to grow & develop business…We would have long conversations……We were told they would send us some potential property projects that had enough profit for all…..waited…..waited however nothing was sent. Then ironically after several months we would get a call or email asking if we would be interested in XYZ deal. As communication was lacking….confidence in them was non existent.
Another example was a crowd funding site who funded a deal in Bury, Manchester we looked at. It was a commercial to residential deal. We checked with the council and there were numerous complaints from neighbours. They way they obtained planning was very back handed as they first got HMO permission then from there flats. As we thought to potentially invest….we called and emailed. Neither the phone call was returned or the email. They probably did us a favour as could see the council restricting the approvals. More so confidence out the door….ZERO reliability!
You must be very careful whom you do business with in property. We like building up and having synergistic partners.