3 Ways to Find Below Market Value Properties | Money Matters | Touchstone Education


– Hello, I’m Paul Smith,
from Touchstone Education, and I hope you are very well. Let me share with you three specific ways in which you can get
property below market value. (upbeat music) Even the very idea that
you can get property for less than it’s worth is
kind of confusing to people, because they’re used to
buying properties from an estate agent and he says
£100,000, and they might go in there and they
might offer, I don’t know, 98 and a half, and they think they’ve got a really good deal, when they get a below market value property at 99700. I’m not talking about that. So here’s the first way, and this is going to sound so obvious, but it’s so true. Meet people. On a regular basis, I do viewings. I’ve given up, I’ve
stopped doing many things, but I do viewings for the simple reason I love ’em. I’m a talker, I love talking to people, I love meeting people, I love
understanding their issues, I love having a chat, I
love trying to help ’em, I love solving their problems. So let me give you an example, this one that I’m thinking of, probably around about 10 years ago, and here’s how it went down. I was doing some deal
packaging at the time, so these were properties up north, which meant I was dealing predominantly London based investors. And what they would do, is
they’d make an appointment to come and see me, I would get their budget,
I would find out what they wanted to buy, and I would then look for properties, and we’d maybe go and
see eight properties, and we’d maybe offer on two of them, something like that. So this guy came up from
London, he was called Tom. Now Tom, who had been investing in London, he’s an electrician, so it’s kinda in the trade, do all the refurbs himself, get his mates to help, that kind of stuff. So he wanted deals, up he came. And we were on the last
property of the day, and Tom had already got two, so I was six grand better off, because every deal he bought, I
was getting three grand. In the last deal of the day, he wasn’t really in it, ’cause he’d finished shopping, he’d spent his money. So we were going along to see it because we’d made an appointment. But because it was quite late in the day, there was no agent there, so we were just seeing the vendor, we were seeing the person
that was selling it. So Tom kinda went in, looked
around for about four seconds and said, ‘hmm all right okay
see you later Paul, bye’, ’cause he wanted to beat the
traffic and get back down to London, which was fine. So I’m now left, I’m
thinking slightly awkward, ’cause I’ve agreed to see this property, and Tom’s done a runner,
and I’m left and I can’t not see the property. So I go in. So we walk round, it’s
only a one bedroom flat. Now it’s been valued at £60,000,
for this one bedroom flat. So in we go, and I’ll tell you what, it takes like one minute
to walk round the place. So what am I clocking? Structurally it’s okay,
it’s got double glazing, it’s only actually got
two windows, at the front, the lounge has got a window,
the bedroom’s got a window, the kitchen is internal to the building, it’s a terrace of flats, bathroom. Kitchen, probably needs, the carcasses of the units are okay, probably needs some new kitchen doors. The bathroom is okay, I wouldn’t put the suite in,
but I ain’t gonna change it. The only thing that’s a bit
weird in the whole apartment is there’s actually a suspended ceiling, with like tiles like
you’d see in an office. There’s a stepladder there, one of the tiles is missing, ’cause for some weird reason, they’ve decided to put the
electricity prepay metre above the suspended ceiling, and which is why there’s a
set of bloody stepladders in the hallway, which is a bit weird. So I’m thinking hmm, better fix that. How do I fix that? I tell them to come and
take away the prepay metre and instal a regular metre. And your man says to
me, “do you wanna chat?” And when somebody says to
you, do you wanna chat, you need a chat. Cup of tea, some biscuits, happy days. I’m sat there with him. And he says, “appreciate you taking the time, “I’m told you’re a property investor.” I’m like hm I am, who told you that? And they said “well, to
be honest I know you Paul, “’cause you’re local, so
I’ve driven you around.” I’m like really? Turns out they’re a taxi driver. Says “thing is, “I’m overweight I know that, “I’ve done my knee in, “I’m in my sixties now, “I can’t get up and down stairs. “So I need some money for the house, “’cause I need to put on an extension, “’cause I’ve got a bedroom downstairs, “I need to build like
a bathroom downstairs.” Okay. And he said “so this
place is valued at 60, “but to be honest I’ve had it for years, “I’ve got the mortgage paid off, “if you made me an offer I’d take it.” And he said “but, I actually
need the money next week.” I was like what? And he said, “I need the money next week. “So I realise you won’t be
able to pay me top dollar.” I said but if you want it next week, I can only give you what
I’ve got in my bank account, I can’t y’know. And he said “well that’s
fine, just make me an offer.” I said well I’ve got like 30 grand. And he said “fine, done.” And shook my hand. And I bought a £60,000 flat for 30, because he needed the money the next week. Make a friend, make a deal. That’s number one. Number two. Strongly recommend you look
at commercial property. I bought a four story solicitors office, that had previously been four flats. And I bought it, the
whole thing, for £66,000. And when it came, I got
a years rent arrears, which is £9000, so I
bought it for £57,000, for four flats! Now when I’d finished tarting them up, it got revalued at £320,000. How the hell did I do that? Well, what I did, is I bought it from the distressed assets division of a bank. The solicitors were still in there, paying me 9 grand a year for a few years until they moved out, I turned it into flats. But did you even know
that banks had distressed assets divisions? So there was nothing
wrong with the business, it was the landlord that had gone bust, ’cause he was getting divorced. And the third way that I’m gonna give you, right up to date a few weeks ago, Gumtree. Increasingly, landlords are
direct advertising on Gumtree, to sell their properties. So what we do is we get
a VA, virtual assistant, they write down all the landlords numbers, all the contact details, just the name and the phone number. And we text them. So people used to in the
old days do like leaflets and shove ’em through the door, we buy houses, any condition. So we do the same thing,
but we do it by text. So VA, two pounds an hour, load up, 100 houses in Doncaster, five quid or something. Text marketing software, six pence a text, send out 100 texts, six pounds. So for like 11 quid, we’re
contacting 100 landlords, and from that, we normally get one or two leads, we’ll go and see ’em. We’re buying several houses a month on the basis of spending
like 40, 50 quid on VAs and text marketing. We buy houses, any condition, reply to this text to see if you qualify, cash within seven days, ’cause that’s what we do, cash within seven days. So using that exact same model, we got a £72,000 house, that’s
what it’s been valued at, we’re getting a £52,000 mortgage, we only paid £40,000 for it. And that’s one that we
did a few weeks ago. So to recap, viewings,
make a friend, make a deal. Distressed assets divisions
of banks, talk to ’em, commercial properties. Gumtree, get a VA to take
the data from Gumtree, put it on text marketing software, send out a text message. Hope you’ve enjoyed this week’s
edition of Money Matters, ’cause after all money does matter. I want each of you to
have sufficient money that it doesn’t matter. ’cause you get to a certain level of money that money just stops mattering, and you can do with your
life exactly what you want to do with your life, that’s why Touchstone exists. We want to inspire generations, thousands, hundred of thousands, millions of property investors, and we want your help, please. If you’ve enjoyed this short video, please like it, share it,
subscribe to the channel, get your mates to watch it. You’ve been wonderful, I’ve
been Paul, catch you next time.

5 thoughts on “3 Ways to Find Below Market Value Properties | Money Matters | Touchstone Education”

  1. I'm assuming your not just buying any old cheap house on Gumtree? I assume you are taking into account it's location, rental appeal etc?

  2. On Gumtree, there are a lot of "we have this high yield tenanted investment property". I assume these are 'steer clear' properties?

  3. Hi Paul, Where can we find details / contact numbers for banks' Distressed Assets Divisions or is it just a question of calling our local branch and asking ? Thanks

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