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Here we go with the penultimate week of this sprint challenge.
Well, you can’t win them all...and nor should you in this business! So, when you go through all the no’s and knock backs, you simply must stop and celebrate the yeses well.
The wins certainly do taste sweet but make sure you pause to savour the taste along the way.
This week we secured our biggest block deal...ever! As the saying goes, we are going to need a bigger boat to land this one. Meaning more private funding than we thought but hey, we do like a challenge...
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Transcription of the show
Here we go with the penultimate week of this sprint challenge.
Well, you can’t win them all...and nor should you in this business! So, when you go through all the no’s and knock backs, you simply must stop and celebrate the yeses well.
The wins certainly do taste sweet but make sure you pause to savour the taste along the way.
This week we secured our biggest block deal...ever! As the saying goes, we are going to need a bigger boat to land this one. Meaning more private funding than we thought but hey, we do like a challenge...
Property Chatter
Welcome to the property voice podcast helping you to navigate safely through the world of property investing, get the lowdown and updates, insights, and outcomes on all matters property with a splash of entertainment along the way, the property voice or voice to trust among the crowd. Now, let's get started with your host, Richard Brown.
Hello, and welcome to another episode of the property voice podcast. My name is Richard Brown. And as always, it's a pleasure to have you join me again on the show today. Well, here we are, it's the fifth week into the six-week sprint challenge. As you probably know, if you've tuned in for the first time, you won't know what I'm talking about. But basically, I'm in a mini-series, aiming for some tight, you know, increased goals that I'm trying to hit for the end of q1 2021. And you have to listen to the first of the series to kind of put it all into context, perhaps listen to them in sequence. You can see how the stories unfolded really over the last four weeks, obviously, bring us up to week five today. And I have to say it resetting the goals along the way. Lifting the vision, thinking much more creatively, dare I say out of the box has really given new energy and new momentum to what's been happening over these last few weeks. Last week. By the way, Thanks, Andy, for sending me your voice notes. Were you absolutely hysterical that we're talking about grinding. Just so I mentioned again, to make you more hysterical. But I said we sometimes have to grind it out. Maybe I misspoke for a little while there. But yeah, sometimes we have to grind it out. And so last week, the week before last was a bit like that. And I felt like we're walking through quicksand or perhaps standing still or even going slightly backward. And you know, just put it into perspective, that was the fourth week into a six-week challenge. And you know, that's a microcosm of a year, it's a microcosm of you know, longer than that, we sometimes have to stand still, we even sometimes have to go backward before we can go forwards. But the main thing is to keep our eye on the horizon, which is where we're heading to. So sometimes when you clown around, so you have to go down before you go back up again, sometimes you need to go round before you go to the top.
So last week was or the week before last was the lineup. And I'm pretty pleased to say that that didn't really continue too badly into the week that's just gone. So I'll give you a bit of a lowdown. There are some good things that happen in this last week. We're waiting for some ink to be put on a piece of paper otherwise I would I was desperately hoping we'd have that sorted out by the time I spoke to you today. But it does not quite look like it's gonna hangover for maybe a day. But these things happen with mergers and acquisitions, as I'm going to explain. So where are we? I think, before we get into that, I think if last week was about, you know, grind, you know, we sometimes have to grind it out this week, it's really all about I think we don't you don't win them all. But the ones you win, the taste is very, very sweet. And in fact, we need to celebrate the wins when they come along. Otherwise, you know, life can get a bit dull and boring. And so I'll come back to that, that myself and my business partner actually had a virtual toast to celebrate on Friday evening. I'll tell you why in a second. But we made sure we celebrated the moment, there was actually a discussion which says, well, we're waiting for another piece of paper to be signed. So should we do them both? Should we celebrate both? On Monday being today when I'm recording this for you? And I said no, we're going to celebrate the win today, Friday. And if there's another one on Monday, we're going to celebrate another winner on Monday as well. Obviously, you could develop into quite an alcohol problem if we had a winner day or something like that. But as I mentioned, we don't win them all. Perhaps there are a few and far between in with the wins. But when you win, the taste is sweet. So that's kind of the gist of today. That's the theme that I wanted to convey in today's episode. So where are we with the goals? So let's start with the business or mergers and acquisition side of things. So last week, I think we spoke at length actually, didn't I about how a misunderstanding perhaps it or a misaligned set of expectations between a buyer and a seller can bring a deal down? Well, in the last week, there was another example of that in a way because the owner of a business who was selling it kind of missed, you know, I think it's just misunderstood.
And it was again relating to you know, some of the assets and cash base of the business and how that would be interpreted. But in this case, he didn't make it clear and in fact you think he did make it clear. He's just kind of got himself confused. So there was an offer that we made the week before last, which is probably going to be parked, but it's not dead. And we're going to keep talking, we just might need to restructure the deal. Because what it means is there's a gap, there's a gap between us, they're not the offer was originally accepted, we were preferred bidder. And, and then there was this, Oh, hang on a minute, I think I might have forgotten something moment on behalf of the seller of the business. And that's what created this gap because he had a slight expectation which he hadn't really conveyed. In fact, the opposite, we'd conveyed our assumptions in our offer very clearly. And there was a disconnection. So effectively, that left us with a little gap in terms of the price that they were willing to accept. And we were willing to pay at that point in time. But that price was on the basis of it wasn't an urn out. So now it's performance-related. It wasn't an upfront cash payment. But it was profiled payments, but they were guaranteed they were assured payments. So there wasn't going to be subject to performance, it was just payment over time, there was a large sum paid up some kind of speed, upfront payment. And then there were some payments over time, essentially, in our offer, but they were guaranteed that there wasn't subject to the performance, the business. So I think the fix, so to speak, is to probably try and bridge that gap with some performance-related payments, if we wanted to increase our offer, but without exposing ourselves too much. So that was still very much in the pipeline, to be reevaluated potentially represented. But the main thing, and in fact, the learning from that is to maintain the relationship. So my business partner, who had a really good relationship has a really good relationship with the owner. And the dialogue is still there. So it's not like we've insulted them, and we've been kicked out and never to, you know, darken their door. And again, it's very much really sorry, I think I messed up here, man, perhaps a little bit embarrassed, I'm going to go in the middle of shell and, and just be quiet for a while. And it's like, no problem, no problem. You know, we can work these things through potentially, as long as there's a realistic expectation on both sides and a willingness on both sides to bridge that gap.
So it's watching this face. Let's see what happens with that one. I know I'm talking a little bit cryptically because some of these are subject to confidentiality. So those that one then there was the rental business I was telling you about with turnover of about two to 3 million pounds. And we're close. Basically, I think we've agreed that deal. That's what I was hoping we would have squared away. But we don't as I'm talking to you today. But it looks like we're close. Certainly close. I don't want to jinx it or anything like that. But I did also mention that we probably achieve our goal for the year with the turnover from that one alone. So that's obviously very promising, very positive. So watch this space, maybe next week, the sixth of the miniseries, I'll have better news to tell you on that one. So I think that's the mergers and acquisitions at the moment does not allow us to happen. That's probably plenty. The acquisition that we made a few weeks ago, we're kind of getting bedded in into that now we're trying to get it resolved, get it sorted, and make it more like our business than what it was before. So so that's interesting. So that's mergers and acquisitions. Then in terms of the blocks in the portfolios, the I think I mentioned last week, we had three offers out. And again, you don't want them all right, so we the offers, let me just get them in my head. One. It's an interesting one because we made a verbal offer a few weeks ago, and the written offer was not submitted for a couple of weeks. After that, now, it's been communicated to us that in the absence of the written offer, the owner of that particular block has since put it on to an option is basically listed for auction. And it's not a contract and therefore is on an exclusivity period, and has to pay a fee, etc, etc. And that's scuppered our potential purchase, because going to wait and see what happens to auction. And he's going to try and keep it in the background, I imagine, and then see what happens, but we're not necessarily going to keep our offer open. It's just that we might, but it might not. But obviously, I think the position changes that say if he sells it at auction doesn't come back to us. That's he wins if you like that's his prerogative, but it doesn't sell at auction then comes back to us. Well, that tells us a different story. So might be that we revise our offer at that point in time. But as I sit here and speak to you, we didn't get an acknowledgment of our verbal, we were asked to go to writing there was a slight delay. And I suppose you could say that not putting the written offer, perhaps lead to that alternative, you know, placement with auction.
But on the other hand, if you start dishing out written offers here, there, and everywhere, it can actually be used to leverage your position with other bidders. So we would actually prefer that a verbal offer. We As agreed, and then was ratified in writing, once it's been once has been a handshake if you like. So you can look at that one or two ways. That's the way we're looking at it anyway. But let's see what happens with the auction. But right now it looks like it's potentially gone. Quiet or gone cold. Let's see if it comes back again. Then we had another one, which is a large block in, in London. And that's we've we have submitted a formal recent offer on that our understanding is is several owners of that particular block, one accepted and the others didn't. So obviously, that's marginal. So we're just going to just sit on that one for a little while. We're not necessarily looking to improve our offer. Maybe we're looking for the vendors, you know, to change their mind. So we'll have to see on that one, what happens, we're probably not going to move, as I mentioned too far in their direction. But the good news is we got a win last week, I've saved it till the end of this particular update. And we had an offer accepted we have Memorandum of sale issued solicitors have been instructed on a significant opportunity, upwards of 6 million pounds. A block of to say it's a block of flats is not doing it justice, it's a really fine building, I can't tell you too much, because we just need to get it concluded. Get it over the line, which we'll endeavor to do over the next few weeks. So let's go on to solicitors. So this is what I was alluding to earlier about celebrating the wins, you can't win them all, you won the other say, I'm not going to say you can't win the war II don't win them all. But when you do, it tastes sweet.
So myself and my business partner, we got this offer accepted and the memorandum issued on Friday. And we would you know, hoping to get also a business acquisition signed on the same day, we thought that we'll hangover till Friday. And it was an I said, well, let's celebrate the win. Let's just you know, jump on a Zoom call and have a sort of virtual toast to celebrate the win. And she said to me, Well, let's wait until Monday. And we can do it for both of them. And I said no, we must do it. Now. This is the win, this is a win today, we must have a celebrate these wins and make the most of it and just recognize the occasion. Obviously, it could turn into quite a lot of alcohol if we're winning every single day. But that I don't think that's likely to happen, given the sort of the order of magnitude that we're looking at at the moment. So there we go. We sat down, I had a glass of Carmen year and she had a glass of Bailey's, we toasted the when we had good old chitchat with Patty's that patted ourselves on the back. And just, you know, just relaxed really for the moment. So it felt good to do that felt strange, obviously doing it over over zoom call. But it felt like it actually was doing I think it was FaceTime, but doesn't matter. It felt good. And I think it's really important to celebrate the wins as we go along. I'm sure you'd agree with me. So that was that. And that brought, it's another problem, which is private financing. That's quite a significant opportunity, a bit bigger than where we've been handling in the previous couple of years, I would say and so we need to, you know, find the funding to, you know, secure that position. So if you've got any money sitting down the back of the sofa, and you'd like to get involved in an interesting project, then you know where to find me. But actually, on that note, and it segues nicely into private financing, is it when you're into this type of run that we're into now, we've literally we're soaring at what 35,000 feet to coin a phrase. And when you're out there, festivals, less competition, you've got greater visibility of the horizon and what's around you, you're not going to you know, smash into a building or something, you know, Pete, you know, cars on the street sort of thing at that type of height. And so you can, you've got this clear view, as I mentioned, but equally, that you It makes you look and scan the horizon a different way.
What I'm trying to say there is I started networking in a slightly different way to how I would have been networking prior to that. So I knew clearly to attract investment bankers with more significant funds at their disposal then perhaps what I've been used to, and so I'm rubbing shoulders with family offices with SAS funds and things like that. high net worth overseas investors, it's interesting because you start talking and then someone says, I've got an over I've got an investment partner over here wants to work with us. And we've you know, been told they've got somewhere between a half million a million pounds to invest, we don't know what to do with it, do you know what to do with it? And it's like, well, maybe let's have a call and let's just see if if it's a good fit, you know if there's room for everybody, what the expectations are, etc, etc. so that that's amazing, isn't it? You know, so you start networking, you open your mind to different types of possibilities. I said this is impossible unless well One of the unless would be accessing larger funds, private funds or, you know, small investment funds to support our endeavors. And so we're working very hard to do that. So as you can tell, it's quite a lot going on. So private financing is going really well. You could do without going a little bit quicker, but it's going really, really well. So that's that one. And then that brings me really up to the book project, the weekend, I managed to get another chapter written about 3200 words, I was losing track of the word count. In fact, I jotted them all down too. So I'd have it in front of me when I was going to talk to you today. And we're about 56,000 words now at the moment. But having looked at the word count, I can see as a few chapters are really a bit choppy in terms of word count. So it doesn't mean I should just take a scalpel, and automatically just remove them down. But I'm thinking to myself, maybe they're quite long. There are a few chapters there, I might end up cutting them down. But I think we're up to about 16 chapters, they will they were supposed to write about 16 chapters, and I think I've written about, about 10, maybe something like that maybe actually maybe like 12. In fairness, so or at least they've been they're in some sort of draft format.
So well on the way have definitely broken the goal. I mentioned, I reset the goal up to 60,000 words by the end of the month. So clearly I need to do another 56,000 right now I need to do 4000 words this weekend, probably to hit that goal. So that's moving on nicely. By the way, this weekend's topic pukin think what it was, what did our friends and family Yeah, that's what it was friends and family financing. So that was what 3228 words was written on over this weekend friends and family financing. So as you can see, there's quite a diverse range of topics in the property financing book, if you've been listening to this, or watching my social media. So there we go, in fact, talking about social media, and I'm looking to boost my in Instagram followers account. So what do you look me up to the property voice-over on Instagram, and just give us a bit of a follow and trying to be more regular in posting over there? And share different types of media content, etc. So be great to have you over there. I've got a large Twitter following and quite a large LinkedIn following in particular. But if you follow me in one of those places, when Why don't you just come over to Instagram and follow me there as well. That'd be wonderful to see you. So and you will see more of me quite literally. So there we go. So I think that's the main items covered off, we've got an apprentice program that is going to kick off our first week of April. And yeah, looking forward to that's going to be interesting to kick to cover that off the input in terms of my development projects, there are some interesting things going on in terms of progressing the ones I've got or taking some key decision decisions on what I'm doing. But everything is moving in the right direction, I'm pleased to say so transition, transitioning or pivoting from, you know, a heavy development focus more into a heavy box and portfolio focus and business acquisition focus. So this is the year of transition, pivoting from one to the other if you like so you got to clean, clear the decks if you'd like to move forward in a new direction. I guess that's it, they really don't want to talk too much more. We've got the last week next week. Hopefully, I'll have a few more breakthroughs or updates to a report. And then we'll take some stuff, but we haven't seen how I've done. I'm really pleased I think with the way this series has gone, but let's see how it lands next week. I won't spoil it too much. There we go. So that's probably my cue to say the show notes are going to be over the website, the promisee voice.net. You can email me personally podcast at thepropertyvoice.net I'd be more than delighted to hear from you. So please do that. Otherwise, I guess all that remains to say thanks very much for listening once again this week. And until next time on the property boys podcast is jack.
Thank you for listening today. Now head over to thepropertyvoice.net. For more inspirational content and get updates through our mailing list. Join us next time on the property boys podcast. And if you enjoyed the show, please don't forget to rate us on iTunes.