Speed Up Deal Sourcing with Deal Criteria
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When you decide up front what a deal looks like TO YOU, you make quicker decisions, save time and communication with others becomes easier.
The end result is more opportunities, more deals and more income.
(Lots of my coachees burn hours of time ‘doing property’ but don’t make any progress - scrolling aimlessly through Rightmove, going on viewings, playing with spreadsheets…but not actually getting anywhere. )
Unfortunately many investors don’t know what a deal looks like and they waste time constantly starting from scratch...
"The Person Who Chases Two Rabbits Catches Neither” - Chinese Proverb
Investors don’t use specific deal own criteria because they:
Worry about missing out on opportunities (FOMO)
Get distracted by shiny pennies
Don’t realise the harm not focusing is having on their business
Don’t think they need to
Haven’t given it the time
If any of these sound familiar then read on…
#1: Brainstorm Your Ideal Deal Requirements
When you select an area / business model it’s important it suits your resources, circumstances and / or goals…
Be clear WHY you’re investing in property and brainstorm what a deal needs to ‘do’ for you. For example:
Provide a monthly cashflow
Create a legacy for your children
Get you a fantastic return on money you have in the bank
Offer excellent places to live for a certain type of tenant
#2: Add Detail To Your Brainstorm
At this stage add detail to your requirements. Try these different areas:
Finances - ROI, yield, money required, money left in
Location - City, Postcode, Road, Area
Amenities - Shops, Employment, Entertainment
Price - Min and Max
Type - Terrace, Semi detached, detached, bungalow, flat, commercial
Size - Sq Ft, no. bedrooms,
Condition - run down, back to brick, opportunity to extend
BUT be careful!
A lot of people trip up here. They make their criteria too strict…
unrealistic amenity requirements
narrow price ranges
unachievable yield targets
or too open:
no limits on no. of bedrooms
huge price ranges
whole cities for location
To avoid these issues be clear about what is a ‘nice to have’ requirement (e.g. amenities) and what is critical (e.g. min 4 beds for HMO).
Where can you flex and where are you strict?
#3: Apply Your Deal Criteria To Your Property search
Then begin applying your brand new search criteria.
Quickly discard those expensive properties, in mint condition that offer no opportunities. Niche down your areas and speed up your search. Only view properties that would genuinely work as a deal FOR YOU.
When you spend time on these three steps you will SIGNIFICANTLY reduce the time you spend looking for deals because you will be laser focused on what a deal looks like.
PLUS, setting specific deal criteria means:
property sourcing can be delegated to a virtual assistant (a topic for another day), so you have even more time!
conversations with investors are easier (you only invest in specific deal types / areas with similar cash requirements)
you can analyse deals quicker (you know your numbers based on previous deals)
When you create specific deal criteria, it’s like focusing a telescope so you only see what you need to and discard the rest.
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