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Property deal sourcing

Discussion in 'General Business Forum' started by LeasingEval, Feb 11, 2020.

  1. LeasingEval

    LeasingEval UKBF Regular Free Member

    297 23
    I have seen a few you-tube videos by folk like Samuel Leeds on property "deal sourcing".
    Is this a thing or a scam?

    The idea seems to be that folk look for property deals on right-move etc. with an ROI of 20% or above and sell these "opportunities" to folk looking for invest in property for sometimes up to 10% of the purchase price.

    Sounds very silly to me.
     
    Posted: Feb 11, 2020 By: LeasingEval Member since: Aug 20, 2008
    #1
  2. Stedurham

    Stedurham UKBF Regular Free Member

    439 63
    you watched the bbc documentary exposing Samuel leeds on bbc

    Deal sourcers never get 10% between 1-3k usually, but good look will cost about 2k to get, regulated money laundering etc

    Then try and find deals, which is easy ish, they sell them to a landlord who will probably have seen or been offered them deals way before you even see them on right move.

    It does work but not like you see in videos
     
    Posted: Feb 13, 2020 By: Stedurham Member since: May 11, 2018
    #2
  3. intheTRADE

    intheTRADE UKBF Regular Free Member

    330 108
    Posted: Feb 13, 2020 By: intheTRADE Member since: Apr 14, 2019
    #3
  4. Stedurham

    Stedurham UKBF Regular Free Member

    439 63
    yeah Danny Butcher, was on Samuel leeds course, theres a bbc documentary about it, so sad. Yet he doesn't care as hes making millions from property ahh sorry property training, that doesn't work
     
    Posted: Feb 13, 2020 By: Stedurham Member since: May 11, 2018
    #4
  5. LeasingEval

    LeasingEval UKBF Regular Free Member

    297 23
    Yes, that is a very very sad story indeed - I had seen that article and investigation before posting.

    How is this guy getting away with it? Is he doing anything illegal?
     
    Posted: Feb 13, 2020 By: LeasingEval Member since: Aug 20, 2008
    #5
  6. ComPropSolicitor

    ComPropSolicitor UKBF Regular Free Member

    274 65
    I have watched some of his videos before - in one of them he was advising people to take tenancies of flats from Landlords and to them rent them out seperately for more money.

    I mean - wow.
     
    Posted: Feb 13, 2020 By: ComPropSolicitor Member since: Feb 1, 2019
    #6
  7. LeasingEval

    LeasingEval UKBF Regular Free Member

    297 23
    That is what he is calling Rent-To-Rent.
    To be fair he is saying that you can't take out an AST and then rent it to someone else under an AST as that is subletting. You need to have an agreement and contract with the landlord that will allow you to rent out rooms individually.
     
    Posted: Feb 13, 2020 By: LeasingEval Member since: Aug 20, 2008
    #7
  8. LeasingEval

    LeasingEval UKBF Regular Free Member

    297 23
    He also advised a guy to quit his job to get into properrty investing full-time.
    The guy found a great property with 35% ROI and went to the bank for funding to buy it and they wouldn't give him a mortgage as he now had no income. Doh!
     
    Posted: Feb 13, 2020 By: LeasingEval Member since: Aug 20, 2008
    #8
  9. Stedurham

    Stedurham UKBF Regular Free Member

    439 63

    yes and out of all my mortgage, checked with 6 different mortgage companies I have them with NOT one allows this, neither does my insurances
     
    Posted: Feb 13, 2020 By: Stedurham Member since: May 11, 2018
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  10. Stedurham

    Stedurham UKBF Regular Free Member

    439 63

    hahahaha
     
    Posted: Feb 13, 2020 By: Stedurham Member since: May 11, 2018
    #10
  11. LeasingEval

    LeasingEval UKBF Regular Free Member

    297 23
    Not all landlords have mortgages on their property.
     
    Posted: Feb 13, 2020 By: LeasingEval Member since: Aug 20, 2008
    #11
  12. Stedurham

    Stedurham UKBF Regular Free Member

    439 63
    correct, but most do. Then some of those that are mortgage free, are leasehold which again doesn't allow this
     
    Posted: Feb 13, 2020 By: Stedurham Member since: May 11, 2018
    #12
  13. Stedurham

    Stedurham UKBF Regular Free Member

    439 63
    if renting rooms out individually this, then could become an hmo depending on how many rooms, which needs a license, without one tenant gets all money back and landlord can get un limited fines
     
    Posted: Feb 13, 2020 By: Stedurham Member since: May 11, 2018
    #13
  14. LeasingEval

    LeasingEval UKBF Regular Free Member

    297 23
    I am so suspiscious of the guy. (Not that I have any intention of going to his courses etc.) But he is saying that all his rent to rent "deals" are checked by solicitors and are legally compliant.
     
    Posted: Feb 13, 2020 By: LeasingEval Member since: Aug 20, 2008
    #14
  15. Stedurham

    Stedurham UKBF Regular Free Member

    439 63
    ive had 6/7 letters from his students wanting to take on an hmo I have, says use red envelopes as they stand out hahahah
    yes if you can do his rent to service accom for instance, so needs to be no mortgage to start with, not a flat as 99% of freeholders don't allow it, needs landlord to change insurance. Then you find the property ive got someone that viewed a house that ive just put up to rent offered me over my rent to do it. Theres no mortgage so could, hes seen on air b n b that the house near me is always full in theory, what he doesn't know is the owner lives between here and france so looks full for months because hes living there and not renting it.
    Check out who trained him sure they are going bust for 2/3 rd time
     
    Posted: Feb 13, 2020 By: Stedurham Member since: May 11, 2018
    #15
  16. Gordon - Commercial Finance

    Gordon - Commercial Finance UKBF Ace Free Member

    2,480 849
    Rent to rent is possible, but only in very limited circumstances. Just like with property sourcing, the people teaching the stuff make out as if the deals are there for the taking, but in reality they’re few and far between. Hence why they are supplementing their income with training courses rather than just going and doing these deals themselves!
     
    Posted: Feb 13, 2020 By: Gordon - Commercial Finance Member since: Jun 26, 2017
    #16
  17. Stedurham

    Stedurham UKBF Regular Free Member

    439 63

    Correct, those who cant do it teach simples
     
    Posted: Feb 13, 2020 By: Stedurham Member since: May 11, 2018
    #17
  18. Mark T Jones

    Mark T Jones UKBF Big Shot Free Member

    4,835 1,845
    Back to basics.

    There are 2 ways to make money from property

    one us to know what you are doing ( with a few mistakes along the wAy)

    the other, quicker, method is to sell courses on how to make money from property

    for the most part it’s completely legal since all they are doing is state the obvious, albeit in a sanitised, idealistic way.

    arguably it should be deemed as financial services on the other hand it might just be natural selection.
     
    Posted: Feb 13, 2020 By: Mark T Jones Member since: Nov 4, 2015
    #18
  19. Stedurham

    Stedurham UKBF Regular Free Member

    439 63
    training needs to be regulated and sure there is a petition somewhere to get it regulated.
    ive made lots of mistakes got 5 flats, all flats are mistakes
     
    Posted: Feb 13, 2020 By: Stedurham Member since: May 11, 2018
    #19