Working with the Right People in Property
Every day I download a podcast related to successful property investors. I am always trying to learn. Today walking on the beach I listened to a women who had a great deal of success, great deal of hardship during the crash and a resurgence there after.
In a rising market it seems all boats seem to rise as well as during a real estate crisis many boats sink. Every X number of years there are real estate crisis’s. The last one we went through was a duzy! So many got wiped out….Now today, it seems too many have forgot this lesson….or maybe they did not go through it.
Today we are at least 10 years since the last crisis. I have no idea when the music will stop, however I am looking at every deal as if the crisis is around the corner. I am trying to be recession resistant. Our social housing HMOs are I feel recession resistant as there are always are and will be needs for housing for all types of people who are at risk.
All of this boils down working with the right people. Right people, mean right builders….right solicitor who answers calls and emails promptly….accountant to direct & advise as well as funding sources. As we are always looking for funds…they have to be the right funds. We spent months going back and forth with a group of hedge funds. Was a complete waste of time or investment of futility. They loved what we were doing….they loved the returns we were generating….however they wanted too much of the cake. We offered them 25% and 75% of the rents generated since they were putting up all the money…plus we get 50% of the upside if there was any after 5 years. However this was not good enough for them…Shockingly so…They offered to pay rather a fixed large sum…however this was not the most fair….Currently we are speaking to several groups including one from China for our conversion projects. The key is to find the right people to work with in your property projects. Do not just chase the money….You want people who are fair…firm and motivated…