MAGIC WORDS To Get BARGAIN Properties | Samuel Leeds
Articles,  Blog

MAGIC WORDS To Get BARGAIN Properties | Samuel Leeds


Samuel: My name’s Samuel Leeds, and on this
video I’m going to be showing you exactly how you can find properties 20% below market
value, and more, every single day. Samuel: Now previously in the past, I’ve talked
about how return on investment is the thing you really should be looking for. Don’t worry
about whether it’s below market value. Now, I’ve changed very slightly, because right
now in 2018, there’s so much opportunity to find deals 20% below market value. So I say,
if you can get both, 20% below market value and a minimum of 20% return on investment,
that is really where the money is at. Samuel: And also, it’s very easy to find properties
that are 20% below market value. So here is how you do it. Step on, the properties that
you’re going to be looking for below market value, you also want them to be getting high
return. Properties that give you a high return typically are properties that you buy low.
Reason is, if you’ve got a house that’s 500,000 pounds, the rent is not that much more than
a property that’s 100,000 pounds. The correlation is not quite there. So you’re going to be
looking for properties that are quite cheap. Samuel: So you’re going to go to Right Move
right now, you’ve got to do this, because the results will just astonish you. Go to
Right Move, and you’re going to search in an area north of Birmingham for properties
priced between 50 and let’s say 70,000 pounds. So 50 to 70,000 pounds. You’ll search 40 mile
radius, and you’ll find there are thousands and thousands of these properties. Now, rather
than searching from lowest or highest price on Right Move, you’re going to search from
oldest listed. Oldest listed means they’re probably quite motivated. Look at the properties,
and you can very easily value a property by looking at what others sold for on this street,
and get an idea. So check the asking price is also the same as the market value. Samuel: Once you’ve done that, you’re going
to then ring up the estate agent. This is the scary bit, the oh my gosh, I’ve actually
got to call an agent. Yes. In order to make money, in order to get results, you need to
a little bit of work. You’re going to call the agent, and I’m going to give you the words
exactly that you must say when you call the agent. So, the first thing you must say is
this. You’re going to say, “Hi agent, I’m ringing about the property on Church Road
for 50,000 pounds. Do you know the one?” Now the reason you’re going to say, “Do you know
the one,” is because what amateur investors do is they start spouting off about, “Oh,
I’m going to make this offer and I wanted to … ” and the person they’re talking to
could be the mortgage broker who happened to just pick up the phone. Samuel: So 32 Church Road, selling for 50,000
pounds, do you know the one? “Yeah, I know the one, how can I help?” Great. Then you’re
going to say, and these are the magic words, okay? So it’s on for 50,000 pounds. You’re
going to say, “Okay, now look, I don’t want to offend anybody, but I can probably only
afford to pay for that house about 40,000 pounds.” By the way, that’s 20% below market
value. “About 40,000 pounds. I don’t want to offend anybody, so is it worth me making
a viewing or not?” And at that point, if they say, “Yeah, it is worth you making a viewing,”
they can’t then moan at you when you put an offer in of 20% below market value. Samuel: In fact, if they say, “Yes, it is
worth you making a viewing,” there’s a very good chance that the estate agent knows that
the vendor will take that offer. You spend a day doing that, and then book a day of viewings
where you’ll view like 10 houses, which have all been pre-qualified BNV, offer 20% below
market value on all of them, and let’s say out of 10 you get five, you just bought five
properties 20% below market value. Samuel: What do you then do with those houses?
Well, you can buy them and maybe, I don’t know, refinance them potentially. Potentially.
Or you could pass them on to an investor for a fee, make sure you’re compliant if you’re
going to do that. But that’s how you can find below market deals. Samuel: So best case, when you ring up is
the … Srija, she’s one of my students, come on Srija, come and sit down a second, we’re
going to role play this right now. So you can see exactly how this looks. By the way
Srija- Srija: Hi. Samuel: How old are you? Srija: I’m 25. Samuel: 25 years old, and you’re an academy
member. Srija: I am. Samuel: And you’re absolutely smashing at
the moment. Srija: Thank you. Samuel: How many deals have you done in the
last month? Srija: I’ve done two. Samuel: Two property deals in the last two
months. No, in the last month. And when you were at the deal finding extravaganza, we
did this exercise, right? Srija: Yes. Samuel: And there was lots of deals being
found this way. Srija: Oh my god, yeah. Samuel: Yeah. Srija: Within 45 minutes as a team we found
at least five. Samuel: At least five, I think it was more
than thought. Srija: Yeah. Samuel: Within 45 minutes, so this really
works. So this is the best case scenario. Okay, so *ring ring* Srija: Hello? Samuel: Hi, I’m ringing about Church Street,
it’s on for £60,000, do you know the one? Srija: Oh yeah, yeah, I’m working on that
myself. Samuel: Great, best case scenario, well Srija.
Yeah, it’s on for £60,000, now I’m going to work out what 20% below 60 is, which would
be £12,000… £48,000, okay, so it’s on for £60,000, listen, I don’t want to offend
anybody, but I’d likely to be only able to offer around about 48,000 pounds for that
house. I know that’s below the market value, but is it worth me booking a viewing or not? Srija: Yeah, absolutely, definitely. Samuel: Really? Srija: I’ll say though the sellers are quite
motivated. They want to move out of the country, so… Samuel: Oh, awesome. In that case I’ve got
a day on Tuesday where I’m going to be doing some viewings, is it available to view on
Tuesday? Srija: Yeah, yeah, absolutely. Samuel: Bingo! Now how often does that happen? Srija: For myself, maybe one in seven, one
in eight. Samuel: Okay, I say one in 10, you must be
extra good on the phone. You are good. So one in 10 they’re going to say that. Srija: Yeah. Samuel: And there’s a very fair chance that
they’ll then accept your 20% BMV offer. Now this is the worst case that can happen. *ring
ring* Srija: Hello? Samuel: Hi, I’m ringing about 22 X Street,
it’s on for 60,000 pounds. Srija: Yep. Samuel: Do you know the one? Srija: Yes. Samuel: Awesome. Listen, I don’t want to offend
anybody but I’d likely to only be able to offer 48,000 pounds. Is it worth me booking
a viewing or not? Srija: No, they’re very adamant they want
to stick to that number unfortunately. Samuel: Ah, okay, no problem. Thanks. Srija: No worries. Samuel: Am I broker or poorer because of that? Srija: Nah. Samuel: Am I any weaker because of that now? Srija: No. Samuel: No, that’s the worst than can happen.
In fact, it’s what you do which is really cool, what did you say when they say no? Srija: I just thank them for their time and
I’m being honest with them and I just say, “Look, this is the situation I’m in, I’m actually
an investor, I’m looking for sort of houses that you’ve got sellers that are really looking
to get rid of it for whatever reason, they might want to leave the country, they might
not want the house. Do you have anyone on your books that you know whatever the asking
price is, the owners are going to say yes to a below market value deal?” Samuel: Boom! Yeah. Srija: And I’ve had yeses from estate agents
saying that, and I’ve had one estate agent in particular emailing me a list straight
afterwards, saying, “It’s worth you seeing them,” and also just saying that she’s going
to go through all the books and sort of saying that. And you really get a chance to build
a rapport with them- Samuel: Yeah, because if you don’t ask, you
don’t get, right? Srija: Yeah, absolutely. Samuel: So it’s great. Also, the thing that
you should not do is just book a load of viewings, and then put in loads of BMV offers. Because
then you’re going to offend people and lose friends. Srija: Yeah. Samuel: But if you do that first, it takes
like 20 seconds on the phone, then you get a bunch of pre-qualified properties to view,
and then offer on, that is a genius way to get properties below market value. Srija: Yeah. Samuel: High five, Srija. BOOM. Hope to see
you very soon!

88 Comments

  • Joanne Smith

    I finally found the perfect HMO, but it has a chain, and the owners aren't giving any signs of moving yet! Is there anyway to speed up the process

  • AamirTime

    Awesome common sense advice as always Samuel. I've signed up for Cherry Pick and will hopefully invest this year with a view to attending the Deal Finding Extravaganza. All the best to you and the team.

  • antvaquero

    Hi Samuel. Loved the magic words!! Great stuff mate! Now I have a question, and I hope someone can help me with it. Let's say you put those 10 offers and get 5 accepted, but you only have deposit for one property, what would be the best thing to do then? Would be doable to get a bridge loan for the other 4 and repay it after re-financing? Thanks a lot!

  • malik brandson

    Anyone reckon that the ads have been on right move for so long or the fact they are accepting below market value not a bit shady ie it’s value is probably going to only decrease

  • MadMax382

    Being a Southerner I got a little confused at one point: When you say, The house on 42 Whatever street, do you know the waarn? I was thinking, do you know the WHAT? I replayed the section three times, thinking, Am I losing it, or is this some commonly used term that I've never heard? I won't be able to do this because I don't know what he's talking about, etc, etc. Of course you were saying 'the one'. Great educational video, as always. The great thing about you is, you teach and inspire at the same time. Maybe that's the secret to great teaching. Leonardo da Vinci once said the greatest sophistication is simplicity.

  • Serafettin Kaya

    I'd love to come to your seminars … been watching you for a while and I like your business mind and honesty

  • stevo728822

    They're 20% below market value for a good reason, as discovered by the surveyor. Everything from Japanese knotweed to troublesome neighbours.

  • Graham Barker

    clearly you are from the north of the country, im from the south, which doesn't mean im rich cos im not….as im at the starting point is there any point in this approach here in the south east where in many places property has gone spiralling out of control….especially where I live, near Tunbridge Wells….I have a small amount to invest initially….

  • P P

    Videos are brilliant keep them coming booked up on the 2 day course in January 2019 what i wonna know is how to run the property if they are far away as im in london and the house prices are crazy high please helpppppp

  • Andrei Apostol

    Wooww great advice Im going to do that ….😂😂🤣🤣….what a bunch of idiots in comments below.some people stupidity is marvellous
    In a world where all properties listed on the market have higher bids than asking price,you're going to buy a property 20% below value with magic words 🤣🤣🤣🤣
    If this is a way to make easy money why you still an youtuber insead of using all your knowledges and magic words to make your money?

  • AfricanFlightStar

    SAMUEL – you are The Man 💪🏼 great advice indeed, and great salesmanship, way to go! 💪🏼⚡️👍🏼💥

  • Oliver

    Seriously, whats wrong in the UK or do i get something wrong here? Samuel, you always talk about figures from 50 – 80000 for a property. If im searching for things in germany, flats for example, in even not so good cities, i never get below 150.000€ / which is 128.000 pounds!

  • Bartek Basinski

    Used exactly the same strategy, wording etc. Made my first contacts at the agencies. 2 viewings scheduled for the weekend. Hoping to do more with time :). Fantastic video :). Networking started so I am determent to make the best use of my work helping someone increasing theirs property portfolio. Thanks Samuel 🙂

  • Penner Penner

    A question: I wanna do something like this too BUT I don't really know anything about real estate stuff at all. All I know, my whole knowledge on that topic comes from Samuels' videos. Im 18 years old at the moment and don't even work right now (still going to school). Anyway, shouldn't there be a reason on why the house didn't sell in a while? I mean "of course" I could buy the house below market value but if I do so, I have the problem of finding a tenant don't I?

  • Bots Nots

    Some good advice sure but you are way too optimistic with your numbers, No way will you find 10 that fast and out of those 10 you may actually only be interested in 1 if any, there will be a reason its been on the market so long, and that reason probably means you don't want it either esp. as an investor as you'll be wanting to rent it out or sell it after. Second problem with this method issue is many of the properties are auction.

  • Game Account

    Why are you still working in the office with 1 single employee if you found the magic solution ?

    Good luck buying 50-70k properties and rent them to nobody ( best case you rent for £200-300, but most likely not, compared to a 500k house that it's being set for rent of 2k ).
    There is a reason nobody is interested, and the reason is nobody will want to stay there.

    Let's say you buy 10 properties with 50k and hypothetically by pure magic you rent all of them at £200-300 each, only the insurance and payments for those houses will subtract from the actual profits. Not to mention repairs, refurbishment, taxes, having to constantly keep track and finding new tenants, etc.

    Everyone will be better of with a 250k-300 2 bed apartment being given for 1-1.5k rent or a 500k 3-4 bed house given for 2k+, than even considering having 10 properties in the middle of nowhere.

    Very poor advice, good properties with potential have attention from many people, and those with no interest usually are not worth investing in.

    What you've basically told people to do is go and buy what nobody has even considered to buy, be the fool that buys the shity property. You think that people that place offers pay the asking price of the property ? Everyone is offering less than what is being asked for, unless other parties already offered more. It seems you're not that good at your job from the advice you give people.

  • King Oz

    Fantastic video, thank you for this, they say if you search enough you will find ! I’ve always wondered how big investors always find great deals

  • martyn fenton

    BTL should be taxed massively – and I'm on the right. The UK needs entrepreneurs not rentiers

    Btw if this worked in practice it's for a reason – they are 40% above REAL value😃

  • Stuart Howe

    BARGAIN BARGAIN BARGAIN FIRST TIME BUYERS LEAVE THE MARKET' IT BRINGS THE HOUSING MARKET TO A COMPLETE STANDSTILL PRICES COLLAPSE 40% 50% 60% BANKS ARE TRYING TO CLEAR ALL REPOSSESSIONS ' FIRST TIME BUYER STILL NOT BUYING' BANKS OFFER NEW DEAL {{{ ITS BUY ONE GET ONE FREE }}} first time buyers you stop buying houses flats ' you will decide what you will pay for them' today they might aswell be priced in telephone numbers'

  • Dingolfing

    Ha ha ha. Market is at the margin and anything is only worth what someone else is prepared to pay. It is not 'below market value'. What you pay is the market value. If it is priced at 50K and not selling and you pay 40K for it, that is the value. Or perhaps you have just overpayed by 5K as it was 15K too high in the first place. What a load of tosh.

  • Brendan

    So, say you make an offer and they accept that offer 20% BMV. if you pay cash, what's next? E.g property of 50k, I offer 20% BMV. Can afford the property without lending, do I just speak to the same estate agent I spoke to to make the initial offer and pay the sellers solicitors? Or do I need a solicitor?

  • Xbot4Life

    Good news for those of you thinking, "too many people are doing this".

    I've been speaking to brokers and ive been told that most people just dont have a clue, even after their £1k course (Not Sams). So as long as you dont have a screw loose, you should be okay.

  • Mister Smith

    So you'd use this script to phone 5 x per day to your local rightmove? 😂 They'd soon get wise / annoyed wouldn't they?

  • Neelabha Chatterjee

    @Samuel- How do you know that the property price they’re quoting isn’t 40% (for example) above market value?

  • carlitoab

    This is all hot air to get more clicks and sell repackaged courses. All this stuff is fantasy. There's no such thing as a quick buck.

  • Michael

    This assumes they are not on the market for a silly price over what they are worth. You need to know what the real value is based on similar properties that have sold in that street.

Leave a Reply

Your email address will not be published. Required fields are marked *