As a property sourcer you need to be able to work out refurb estimates quickly. Balancing the need to do get this job done fast but accurately is a skill that needs practice. In this session Mark talks you through the key elements to look out for. You'll learn
Get the free resource that accompanies this segment. [thrive_2step id='10291']Refurb Costs Planning Template[/thrive_2step]
The world of Facebook ads can be an intimidating place for newbies. The future of lead generation however is on paid traffic platforms like Facebook so you need to jump in and get to grips with it. In this session Brad shows you the quickest and easiest Facebook ad campaign to get up and running today. You'll learn:
Get the free resource that accompanies this segment. [thrive_2step id='3303']Facebook Retargeting Training[/thrive_2step]
Mark: Okay, everyone. Welcome to this week’s Q&A session. We just mentioned earlier this is from Lindsay Hannigan and really the question is about talking to owners and being worried about being asked questions that you can’t answer and then feeling that you’re selling to them rather than trying to get them on board. This is a very, very common situation. It happens a lot whether it’s rent to rent whether it’s lease options, whether you’re trying to negotiate a sale and quite often and kind of like we were talking about in the rent about the property education. Until you get in front of a seller or a landlord, a property owner, you don’t know what they’re going to say, you don’t know what they’re going to ask. I mean, you can prepare for the general sort of frequently asked questions, the FAQs but quite often they’re going to throw something in that you might not know about especially when you’re at the beginning of your journey.
I’m going to answer this question in two stages. The first stage is going to be about lack of knowledge. If a landlord or a seller throws something at you that you don’t know I’m going to answer that in a section and then the second part of the answer I’m going to go into a few tips to help you with regards to getting that landlord to well, agree to what you’re offering in the way of a rent to rent situation. But again this can be adapted to any negotiation process. The first part with regards to knowledge is you are not going to know everything there is to know about what you need to know. That sounds a bit cryptic again but you cannot go into a negotiation worried about what you’re going to be asked because you cannot predict that.
Now, there are going to be basic questions that you’re going to be able to answer. Exactly how it works and the mutually beneficial side to it. All that you can prepare for and you’re going to be explaining that to them while you’re there. If they ask a question but you do not know the answer to, do not blag it, do not make up an answer and so what we do is we – the way that we teach is that we will say to that person, look, I’ll be honest I personally don’t know the answer. I think I know the answer but I don’t want to tell you something that’s inaccurate. What I’m going to do is I’m going to go away, I’m going to speak to my business partner and I’ll find out the answer just to make sure that I’m right in my own head and then I’ll either get them to contact you or I’ll contact you again and let you know the facts.
What you can do is it buys you a bit of time. You can go away from that appointment taking away all the other information that you need. You can then come back with your offer but also come back with the answer to that question. This is where being able to go and ask a question in a support group or from a mentor or from someone that knows more than you, you can then go back to that person, you can answer that question and A, they’ve not been messed about, B you haven’t blagged it and then you had to go back and tell them that you made a mistake and actually the information is this not what I told you and then also it’s a learning experience because the next time you get asked that question, you’re going to know the answer. Everything is about facing these circumstances and facing these situations. Until you get in there and have these negotiations, you’re not going to know the questions that might get thrown at you and so do that, buy some time, go away and speak to someone that is in the know and then you go back and explain that to the landlord, tell them what the answer was and do that with your offer. Combine the two which will get you a much better result because it will give you a reason to phone them back and it also gives you a reason to go through and provide that offer as well. Hopefully, that helps with the lack of knowledge.
Now, with regards to the feeling like you’re selling to a landlord, the thing with this is that we get very excited in a sale situation especially when you’re not used to it. There’s a lot of people that get into property sourcing, property investment who are not used to getting into negotiations with sellers. They’re not used to a sales process and so what happens if you go into the situation and you spell off all the benefits to that landlord you’re like guaranteed rent payments, no maintenance cost, we repair the house for you, we can agree it for up to five years, we take all the headache away, there're no voids. Now, these landlords are there – if they’ve got you in so you’re speaking to that landlord because there is a pain point that they need solving and very often it is not every single thing that they need solving. Usually, there’s one element of that tenancy, tenant management process that they need help with. In order to avoid feeling like you’re selling to them, what you need to do is you need to go in and ask very open questions about the reason why they’ve asked you round today. Things like, you know, how long have you had the property? Have you had many voids during that period? What about maintenance? Maintenance is a headache kind of for a lot of the clients we deal with. Do you have a lot of maintenance that you have to pay out for? Tenants. Have you had bad tenants in the past? Tenant arrears, tenant headaches, are they ringing you all the time? And by asking these questions what they’re going to be doing is they’re going to in effect finally come to the point where they tell you the reason why they’re considering this sort of guaranteed rent service so there’s rent to rent service. Once they tell you what that problem is, so once they tell you what a big headache is for them all you are now doing is offering a solution to the problem that they have.
All the other things that you do are a benefit but what you really need to focus on and what you really need to spend your time on during that negotiation is the answer, the solution to the problem that they have highlighted. Quite often the biggest mistake people make when they go into a negotiation is they go in with a predetermined outcome and that is when you find that you’re pitching rather than finding a solution. You’re pitching your service rather than trying to discover what their issues are in order to find that help.
Now, once you find the solution to a problem, it’s very difficult for a landlord to then come against that but the focus will be around that solution. So you know that you can go in and confidently answer any questions that they’ve got or again like we’ve mentioned before, if you don’t know the answer just say look, I need to come back to you. I’ll speak to my business partner and I’ll find out the correct answer for you. And that really is sort of in a nutshell how you want to be dealing with vendors, landlords when dealing with any negotiation process but specifically for rent to rent. You need to identify the problem and then you need to offer a solution to that problem in order to get the best results from your negotiations.
Mark: Hi, everybody and welcome to this session sourcing with Mark. Now, this session rolls on very nicely from session 12 where we discussed how to go about doing the virtual viewing. Now, the process for doing the virtual viewing is exactly the same process as when you do the physical viewing apart from needless to say you’re not there. But the process is the same. You’re going to be walking around the property and you’re going to follow a set pattern as you walk around the property. You’re going to be making notes on the viewing checklist for any important key features but you’re also going to be making a note of the works that are required.
Now, when you’re estimating refurbs especially when you’re sourcing as a business it’s going to be very important that you can do this as you are walking around the property and because you’re tallying up, you’re starting up how much the refurb is going to cost in order to be able to then speak to the seller at the end and even if they are pushing you for a figure you might be able to discuss something at the viewing. The more you do this, the more practice that you get, the easier this will become but what I’m going to do in this session we’re going to talk about how you do it as a beginner and then the more viewings that you do, so the more you do this on a regular basis, the easier it will become and then you’ll get to a stage where like I now can walk into a property and literally within 20 minutes of walking around that property I can pretty much nail on a refurb estimate for how much that house is going to cost us to do up or for us to then package and sell that to an investor letting them know what the refurb cost is going to be.
There are people that comment, they say, get a builder out or I saw someone put about in the Facebook group about getting a quantity surveyor, right? Now, it’s overkill. When you’re trying to do this as a business or when you’re trying to do this viewing a number of properties it is going to be very awkward for you to either have a builder or quantity surveyor on tap ready to come out to 20 viewings a week with you. They just wont to do it. It’s not fair on them and it’s certainly waste your time.
Also, what you’re not going to want to do is arrange multiple viewings either with agents or with sellers in order to get your contractors rent to quote because not every deal is going to go through so you’re going to be getting your builder contacts to be coming out to multiple properties. The offers aren’t going to be accepted because that is the nature of sourcing as you will have a lot of offers that will not be accepted initially. So you’ll get an upset builder and then they won’t do any works for you when the important time comes when those deals start to come through.
This is really important to get right when you’re sourcing either for yourself or as a property business. What I’m going to ask you to do is I’m going to ask you to do a bit of homework from this session which I have not asked you to do in all the previous podcast but this does involve a degree of work and prior to going out and doing this for real, the content upgrades this session is a refurb cost sheet. It’s a spreadsheet which is it details all the main items that you will quote for, you will estimate for when you’re doing a refurb and on those what I need you to do is you need to go away and find out what the rough costings are for these items in your local area. We know across the north it’s a fairly generic price for most of the major items. We kind of work off the same price sheet and in all the different areas but for yourselves, wherever you’re listening what I want you to do is go away and find this information out. How you’re going to do this?
Well, there is a session of sourcing with Mark where I do believe I would go into had to find contractors. It’s exactly the same principle. What you need to do is just phone around a few contractors. This is a really good exercise for building relationships with people that you’re going to need anyway but just phone them and ask for a generic price. How much would it cost to re-skim a living room or how much would it cost roughly not if it’s a supersized triple whammy room that’s 20 meters x 20 meters, that’s not what – you don’t want the price for that. You just want a generic everyday price in order to be able to put a note on the spreadsheet. I do it for every item that I’ve put on the checklist for you.
Now, these things are going to include things like decorating, skimming I’ve just mentioned, car pits, rewiring, boiler, central heating systems and if anyone ask for a – if they want a property price so if they want a price for – if you want to get a price for generic property I’d always just sort of say a three-bedroom semi, how much would it be to rewire an average three bedroom, semi detached house something like that.
Now, once you’ve got those prices, what you’re going to do is as you walk around the property, as you do your viewing. You’re going to be making a note of any items in that house as you walk around the rooms. You’re going to be making a note of any items that need to be addressed. Just as an example let’s just say we walk into the house, we do a viewing so the first room we come into is the lounge. On the left-hand side is we’re going clockwise and in the lounge, it’s wallpapered, it is an old carpet, the windows are single glazed, wooden framed windows. The ceiling is the old polystyrene so we know that what we’re going to need to do is we’re going to need to quote for new carpets, we’re going to need to quote for skimming, we’re going to need to quote for decorating. We’re also going to need to quote for stripping that wallpaper which is a real pain and can take time. We’re going to need to board and skim the ceiling. We’re going to need to replace the windows both frames and glazing. We’re going to have to put new double glazed windows in there. Now, these are all the things that you’re going to have prices for on the checklist. Already as you’re making these notes, you do this in every room, you finish the viewing, you say thank you very much, you leave the property and then you check the viewing checklist against the refurb cost estimate sheet and that will give you a price for each of the rooms that you’re refurbishing.
What you’re then going to do is you’re then going to tally that up and as you tally that up that’s going to give you your refurbishment estimate. Now, remember, this is very rough. This is a very rough costing. What I always add on to my refurb estimates as I’m walking around is a 10% contingency. There’s always going to be a 10% contingency. That’s a bit of a buffer just in case you didn’t get something quite right or you miss something and then needless to say that’s going to give you a price you’re going to be able to then leave the property. You’re going to find out that price, you’re going to phone the seller or the agent and then you’re going to base your offer on the price that they’re asking less your reductions, less the refurbishment estimate, less stamp duty etcetera, etcetera and that’s going to give you a good price to offer.
Now, the more you practice this, the better you will become. Like I say, I can just go into a property now and pretty much estimate a refurbishment as I’m walking around and the more you do this, the more you will be able to do that as well. You can do it in your own house, you can do it in friends and family’s houses, you can do it with agents and just go and view 10 or 15 properties and go through the motions each time. Make sure that you’re paying attention and you will become incredibly good at this and that really is how to estimate a refurbishment yourself.
Remember, it’s not an exact science. It really is based on losing them but it’s just for you to come up with a price in order to make offers to the sellers to get practicing. Enjoy it. Happy sourcing and I will look forward to hearing the feedback from how you get on.
Brad: Hi and welcome to In The Lab with Brad. The no brainer Facebook ad campaign all property sources should be running and how to run it. Now, overwhelming, complex, confusing, frustrating, all words that I’ve heard people use to describe setting up Facebook ads and I’d agree. It’s all of those.
Now, I’ve been using and working with paid traffic platforms since right about 2006 so it’s easy for me to take for granted like the cogs and the mechanisms that lie beneath the surface but I’m acutely aware of how new to these types of platforms, property professionals and property sources are. That must feel like such a mountain to climb for newbies. My thoughts turn to how I may be able to show you something inside of the Facebook ads that allow you to get a relatively simple campaign set up and running in maybe just a couple of hours.
Now, it will enable you to get value from Facebook ads, generate more leads, not get too deep into the technicalities of it all and give you what I believe to be the quickest win that there are inside Facebook ads. I’m going to show you how to set up what’s called a retargeting campaign. Now, essentially you’ll be able to create an ad and put it in front of anyone that goes to any of the pages or all of the pages on your website. Where’s the value in that you might ask? Well, imagine that a seller or investor or a landlord came to your website to check you out. It doesn’t matter what page they went to as long as they went to a page. Now, inside of the Facebook ads manager, we are able to create an audience of all of these people. You can then create an ad and tell Facebook that you want to show that ad to everybody that visited your website.
Now, the real power in retargeting is when you actually create what are called custom audiences of website visitors. These are visitors to specific pages on your website. Let’s say that you have an investor page where your deals are. You can build a custom audience of all the people that went to the pages related to investors then you would create a Facebook ad with all your deals on it or individual deals on it and put that ad in front of all of the people that just went and visited your investor deal page. That’s amazingly powerful thing to be able to do.
How do you set these ads up? Well, it’s not going to make a particularly exciting In The Lab With Brad this week if I just kind of talk to you through the steps of getting a campaign up and running. What I’m going to do slightly unusually this week is I’m going to give you a very basically a step by step video that you’ll go to be able to almost look over my shoulder. I could look over my shoulder training. Now, you’re going to be able to get that if you go to goliathsourcingacademy.com/session13. If you click on the link, leave your e-mail there. You will get access to that training video. It’s less than 20 minutes as I said, step by step, look over my shoulder stuff and it will describe to you, it will show you how to get a retargeting campaign set up and running and you should really be able to do that in under a couple of hours and it really is the best way to get yourself into Facebook ads, gives you the best return on your time, best return on the money that you’re going to spend on those Facebook ads as well. So do get along /session13, goliathsourcingacademy/session13.