The Property Voice Podcast - Series 2: Property Cycles - The Investment Property Lifecycle - Acquire
I am joined on the show today by Mark Lloyd from Lloyd Reeves & Property Mastery Academy. Mark is an investor, entrepreneur and educator in property, who also supports people in property acquisition. So, it is fitting that he joins me today as we look at the Acquire phase of the Investment Property Lifecycle. We shall explore acquiring property and with Mark’s help will also learn that property deal sourcers need to meet a number of strict registration requirements in order to operate as a deal sourcer…one of the methods of acquiring property as an investor. Join us as we chat through the merits and pitfalls of using a sourcer as property investors.
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Resources mentioned
Mark Lloyd from Property Mastery Academy (training) & Lloyd Reeves (sourcing) or telephone on 01252 730045
Today’s must do’s
Send in your nomination for the best book you have read (or listened to) in 2015, along with the reason: podcast@thepropertyvoice.net we will feature as many as we can comfortably do so in the show and the best 3 will receive a copy of my book: Property Investor Toolkit with my compliments
Subscribe to and review the show in iTunes…and while you are at it please help us to spread the word by telling all your friends too!
Send in your property stories, questions or moans to podcast@thepropertyvoice.net and we will try and feature YOU on the show too!
Property Investor Toolkit – here is the book link on amazon.co.uk & amazon.com in case you would like to get yourself a copy to accompany this series
Get talking!
Join in the discussion, either here in the comments section below, or by emailing us at podcast@thepropertyvoice.net
Start a conversation on Twitter with us @PropertyVoiceUK or on our Facebook page
Transcription of the show
Hello and welcome to another edition of The Property Voice Podcast, my name is Richard Brown and as always it is a pleasure to have you join me again on the show today.
Last time out we started to discuss the four stages of the Investment Property Lifecycle in overview form. These stages, which are: Acquire, Finance, Works & Exit as we explained last time.
Today, we start to drill down into the Acquire stage a little more. As property investors there are a number of ways in which we can acquire property investments, be that on or off-market, directly or indirectly. Indeed, one of the methods of acquiring property is by using deal sourcers and that was part of the focus of a conversation I had with today’s guest on the show, Mark Lloyd, who is an active property investor, businessman and educator.
Let’s start off by listening to that conversation now in Property Chatter and we can pick up the thread again shortly therefore.
Property Chatter
Interview with Mark Lloyd
I think the conversation with Mark highlighted and indeed reinforced many of the principles that I have shared over many weeks of The Property Voice podcast. For example, he talked about property investing being a business activity, the need to educate and inform ourselves and of course that we should always take steps to check out the people and organisations that we intend to work with…or due diligence to give it an umbrella term.
I am pleased therefore that Mark made these points. I am also pleased that he explained that deal sourcers are subject to regulation under the Estate Agency Act 1979. Deal sourcing is a form of estate agency you see and the Estate Agency Act points out that people who represent sellers and buyers need to follow certain compliance measures. The most notable one is to be a member of a recognised ombudsman service, such as the TPO, or The Property Ombudsman.
I like the simple checklist that Mark outlined in the interview to validate a deal sourcer’s credentials:
- Are they a member of an ombudsman scheme?
- Do they have suitable professional indemnity insurance in place?
- Are they registered with HMRC with regards to anti-money laundering regulation?
- Are they registered with the Information Commissioner for Data Protection?
Mark estimates that at least 50% of active deal sourcers do not have all of these provisions in place…so do your checks. He did also suggest that a casual deal sourcer, such as an investor passing over the odd deal to another investor may not feel the need to go to such lengths as this for what might be the odd opportunity here or there. We will have to make a judgement call should we encounter such an individual, however, I would strongly suggest that we undertake our own full due diligence on any property investment opportunity, independent of what any third party may have to say to us.
Returning to the general theme of acquiring property, however, let us recap on the main methods or routes to acquiring investment property. These are principally:
- Estate agents
- Auctions
- Letting agents
- Administrators
- Direct to vendor
- Deal sourcers
These methods of acquiring investment property, along with the alternative methods or structures of property acquisition will be picked up later. Right now though, let’s leave the discussion there for now and we shall pick it up again next time.
Your Voice
I am going to do something a little different this week in Your Voice. One of our regular listeners and indeed a source of ideas and themes to cover in the show is someone by the name of Sanjay, who you may have me namecheck in the past.
Now, Sanjay has been following by Book Reading Challenge during the course of the year. I have read around 40 books this year and he asked me to list my favourite, along with the reason for suggesting them.
I plan to do exactly that in a short end of year episode next time out. However, it would be great to get a few listener suggestions to share then as well. So, why don’t you drop me an email with the best book you have read this year and why you would nominate it. That way, we can all get some good book recommendations for 2016 can’t we?
Mail me: podcast@thepropertyvoice.net with your top book of 2015 and why you think so; I shall share the best ones in the show and as an added incentive, I will send the best 3 a copy of my own book: Property Investor Toolkit as well.
Shout Out
Today’s Shout Out goes to a communication app called Basecamp. If you regularly need to communicate with a team of people, then Basecamp can be a good solution for you. Personally, I found that I was using a combination of Whatsapp, email, Facebook messenger and probably a few more communication tools besides for some internal communications with my business colleagues.
Then, we found Basecamp, which allows all written communications to be held in one central place and managed across platform due to it having both a desktop and smartphone application interface.
It is still early days for us, but already we have found it a lot easier to manage and search for those annoying bits and pieces of notes that we may have sent to one another using a variety of different methods beforehand.
Give it a try!
There we go then, another episode of The Property Voice Podcast draws to a close, as does the end of the year. I would like to wish you a very happy festive period, regardless of religious persuasion, let there be peace, tolerance and harmony to all.
I shall have a short episode out on the Wednesday before New Year, just in case you are missing your regular property fix, or just need a break from all of the festive fun.
So, join me then, for a short and sweet end of year special edition of the property podcast.
Don’t forget to drop me an email personally with your best book of the year recommendation to podcast@thepropertyvoice.net
Meanwhile, the show notes will be over at the website www.thepropertyvoice.net
Thank you very much for listening again this week and until next time on The Property Voice Podcast…it’s ciao-ciao