#06 - Deal Packaging in London & the South-East, does it Really Work?

If you’re just starting out, if you are building your property business today, if you Package Deals today, if you want to source and sell deals today, don't think to go up North, go to London! In and around London, in and around airports, that's where you need to be.  KEY TAKEAWAYS “David, Deal Packaging does it really work? Can I package deals in the South-East of England? Can I package deals in and around London? I don't think it works, I can't make the arithmetic work, I don't think it’s going to happen for me."  I just want to say to everybody, that London is the best place for Deal Packaging today. If I was starting up today, I would go to London and earn my fortune in London.  Everyone knows that my business concentrates in Manchester and I regret it badly. It was a massive mistake, it has cost me, without exaggerations, millions of pounds.  Why would you set in London, Dave? What is it so special? As some of you know, when I started property, finance was very easy, you could set it up on the phone, so I went Manchester and started buying properties. I was buying them like Kit Kats, just for fun.  It was an error. I should have gone to London and here is why. The value of the houses went down; we are now just about back where we were when the crash happened. Pre-crash values, 2007 values.  If I would have gone to London, in 2004 and invested £1.000,000,000 in 4 properties, something that you could do in 2004 in London, but not today, imagine where would I have been now? It would cost me millions of pounds to do what I have done, in London today.  Lots of investors only want to buy deals in and around London. They are not concerned about rent role, they are not concerned about the yield, they are not concerned about the return on capital employed today, they are not concerned about the conditions of the building, they don't mind if it's a bit run down, but they do mind the postcodes. The reason they want that is because, at the moment, there is a pause in the London market, but in twenty years the good prices will be in London.  The South-East would be at the top of my list of places to go. There you can still get three beds, generous size, ex council, terraced property, in a decent area for less then £250k.  You can get up to £3k a month, if you have Serviced Accommodation guests in your property.  There is so much more to do in London and those areas, so many more strategies. There is not shortage of money in London.  Invest your money in London! London going forward, once again it's going to lead the country in property prices when everything takes off again!  Over time, Property prices go up! Properties in South of England grow more than properties in the North.  Your investors need to invest in London. The returns they will get over time are going to beat anywhere else.  On the investor side, get along to the property network meeting. There are dozens of them now, all in London. Build your profile, pick your favourite ones.  Go and see agents. Put a serious proposition to them and they will listen to you. Find the money, go to auctions, everything you need is in those auctions houses. Don't buy the property, meet the people.  Go to the South of the river to invest your money. I am really excited of the opportunities in South-East of London.  Once you get a foot on the leather, you can move more central. Buy something a bit more trophy, that you will be proud to own.  By investing in the right place, in five, ten years’ time your financial situation will be completely transformed.  BEST MOMENTS There are so many opportunities in and around London. Do not hesitate, if you need to start your property business today, do it there.  It doesn't need to be the centre of London, it can be around London, target the airports. Package deals to serve airports on a Serviced Accommodation basis. You don't have to bash any walls out, you don't have to do Multi-Lets, just Serviced Accommodation for people that work at the airport, i.e. Harlow, for London Stansted.  Start investing in London!  VALUABLE RESOURCES Rightmove Zoopla Progressive Property Deal Packaging Course Commercial Conversion Course ABOUT THE HOST David is a property expert with over 25 years’ experience and his own portfolio of 26 units. His current rent roll is in excess of £10k per month. He is also a partner in a Deal Sourcing and Packaging business in the North West of England and has sourced over 250 properties for investors since 2004. In recent years he has, by necessity, had to develop an expertise in LHA strategies. This area is increasingly becoming a niche for him and he enjoys empowering other landlords by sharing the knowledge he has gained. The ultimate purpose when sourcing properties in this sector for investors is to minimise risk while maximising profit. He has had to find answers to the challenges of Tenant Find, Management, ensuring rents are paid and the transition to Universal Credit. These are strategies he uses in his own business and also on behalf of investors. His investor clients regularly achieve annual gross yields of over 20% with high occupancy rates and voids resolved, sometimes within hours. CONTACTS David’s LinkedIn David’s Facebook