You Have to Get Your Valuations Right to Make a Deal

Property Sourcing Profits Podcast

Getting the numbers right is crucial to success in deal packaging.

In this episode, David discusses the fact that the majority of valuations he sees are incorrect and shares great succinct advice and tips on how to work on your valuation skills and get the numbers right.

If you can compare like with like, understand the sold comparables and accurately estimate refurbishment costs then you will be able to improve your valuation skills and get more deals.

KEY TAKEAWAYS

What can you do to improve your valuation skills?

You can only make comparisons with something that is similar

Where there are sold comparables look at a range, not just the best. The information is all available online so it will be checked through due diligence by the potential investor

If you want a yield driven valuation in the current market you need to be in an Article 4 area, it’s got to be 6-bed plus and preferably in a property that isn’t a family home set up.

It’s got to no longer flow as a family home due to the alterations made

You need to accurately understand and estimate the refurbishment costs especially with conversions to HMO’s

Make sure you compare like with like, work out from the sold comparables what you think a house is worth if there are any odd-looking numbers then highlight them

We work on an average of 6-10 thousand per room

Focus on the bricks and mortar family home values

BEST MOMENTS

‘An HMO has got to no longer flow as a family home due to the alterations made’

‘When there are a lot of pictures you can tell it’s a property that the owners are proud of’

‘You have to compare like with like’

VALUABLE RESOURCES

Property Sourcing Profits Podcast

https://www.progressiveproperty.co.uk/

https://unlimited-success.co.uk/

https://www.facebook.com/groups/progressivepropertycommunity/

Property Investors podcast

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

https://www.linkedin.com/in/david-siegler-7b126316/

https://www.facebook.com/DavidSieglerInvestments/