Have you ever come across a distressed vendor? Have you ever considered what to do when you encounter a property owner who’s desperate to sell? In today’s episode of the Property Sourcing Profits podcast, your host David discusses how you can turn distressed vendors into motivated sellers and shares with you why it could be a good thing for your property sourcing business.
KEY TAKEAWAYS
Who is a distressed vendor? This is a vendor who desperately wants to sell.
Distressed, moti...
Have you ever come across a distressed vendor? Have you ever considered what to do when you encounter a property owner who’s desperate to sell? In today’s episode of the Property Sourcing Profits podcast, your host David discusses how you can turn distressed vendors into motivated sellers and shares with you why it could be a good thing for your property sourcing business.
KEY TAKEAWAYS
Who is a distressed vendor? This is a vendor who desperately wants to sell.
Distressed, motivated sellers, is it a good thing? This could be a good thing because you might be lucky enough to buy a property BMV and later on sell it at a profit. You stand to make a very good amount of money because the distressed seller might have sold it to you at a very low price because he needed to desperately sell the property.
What you need to do if you get a Landlord with 8, 10, 15 houses on the market. Know the addresses and want to know who the lender is. Once you got the addresses, you can go to the land registry, do a search for three of the properties. Don’t do 10 or 15, pick three or four addresses and go to the land registry, payout three pounds on each, maybe 12 quid in total and see who the lenders are. Know when the distress vendor actually bought the properties. You also need to know how long the mortgage term is.
Why you need to be cautious with distressed vendors. If it is one of those lenders who specialize in the day one re-mortgages back in the day, then alarm bells need to ring and they need to ring because those lenders are no longer actively lending in the market and they've probably sold on their mortgage books to different companies who are not mortgage providers. They are basically trying to collect as much money from the mortgagees as possible.
BEST MOMENTS
“New Year resolutions, keep on it, keep at it, a New Year’s resolution is not just for the New Year, you have to keep at them all the years.”
“From distressed sellers, motivated sellers, you get a deal.”
“If a distressed vendor won't move on his price, there's an alarm bell ring in there.”
“Go out and find your distress vendors. There are some good genuine people out there, good distressed vendors; they're the ones you need to work with.”
VALUABLE RESOURCES
https://www.facebook.com/groups/progressivepropertycommunity/
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.
CONTACT METHOD
LinkedIn: https://www.linkedin.com/in/david-siegler-7b126316/
Facebook: https://www.facebook.com/DavidSieglerInvestments/
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