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Transcript

Build A Property Investing Power Team · The Property Unleashed Podcast

• 0:00
  SPEAKER_00: How to build your property investing power team.
• 0:13
  SPEAKER_00: Hello, my name is Matt Fitzgerald.
• 0:15
  SPEAKER_00: It's great to have you joining me here today.
• 0:17
  SPEAKER_00: So in this episode, I want to talk to you about how you can actually get the most from your power team.
• 0:23
  SPEAKER_00: And it's very, very important that you start to build a power team.
• 0:27
  SPEAKER_00: Now, what's a power team in property?
• 0:28
  SPEAKER_00: Well, a power team is the team that's behind you to support you with your property purchases, with any deals that you're looking to achieve and do.
• 0:37
  SPEAKER_00: Now, if you're looking at buying properties, your power team will consist of mortgage brokers.
• 0:42
  SPEAKER_00: It will consist of independent mortgage brokers, I want to add to that as well.
• 0:47
  SPEAKER_00: It will also consist of solicitors, it will any planners, any architects, anything like that, you want to start building that in.
• 0:54
  SPEAKER_00: Obviously, if you're looking at doing refurbs when you're buying a property, your power team will start to be contractors, will start to be builders and all along those lines.
• 1:04
  SPEAKER_00: But equally, if you're a savvy investor, and I'm sure you are, if you're either watching this or listening to this, you will be building a property business.
• 1:13
  SPEAKER_00: So you will also need to have accountants, you will need to have other people that can help you to grow your business.
• 1:21
  SPEAKER_00: And that goes accountants and taxed specialists.
• 1:25
  SPEAKER_00: Tax specialists are different from accountants.
• 1:28
  SPEAKER_00: We'll go through some of those things now.
• 1:30
  SPEAKER_00: But it's vital that you not only get your power team in place, but you also make sure that you vet your power team and you make sure that you get the right people to help you because fundamentally they are there to help and support you.
• 1:44
  SPEAKER_00: So myself, I make sure that the members of my power team I'm able to reach out to.
• 1:49
  SPEAKER_00: Now that doesn't mean that I can get hold of them 24 24-7.
• 1:53
  SPEAKER_00: It just means that when I need to get hold of them in a timely manner, they will get back to me and help and support me.
• 2:00
  SPEAKER_00: And some are better than others.
• 2:02
  SPEAKER_00: But I would say, particularly with a lot of different industries and sectors that we're evolved in for our property business, that you have one or two in your back pocket ready to use.
• 2:13
  SPEAKER_00: So building a robust power team is a non-negotiable for scaling a successful property business.
• 2:20
  SPEAKER_00: Whether you're looking at buying properties, whether you're just looking at potentially building a property portfolio using strategies like purchase lease options or rent-to-rent, you still need to make sure that you have the right specialist information and access to these specialists all of the time.
• 2:39
  SPEAKER_00: It's not about having a solicitor or just an accountant, it's about having the right ones.
• 2:45
  SPEAKER_00: The best professionals, of course, in your corner are those that understand property and an investor's perspective.
• 2:54
  SPEAKER_00: So as well as being specialists in their sectors, they also want to be, I think, investors themselves.
• 3:04
  SPEAKER_00: So when you're actually sort of vetting and you're you're talking to people and you're seeing about growing your property business, ask them a few questions.
• 3:12
  SPEAKER_00: So firstly, I like to ask them, are you property investors yourself?
• 3:17
  SPEAKER_00: Have you ever bought properties or you are buy to let?
• 3:20
  SPEAKER_00: This is an absolutely golden question because even when it comes to your accountant, an accountant who owns a property portfolio will understand your challenges, your opportunities far better than one who only deals with standard businesses or standard business accounts.
• 3:39
  SPEAKER_00: They really want to be sort of walking in your shoes, as they say, because then they'll understand the nuances and can offer practical, good advice rather than just theoretical advice because they've never actually done any property deals like you're doing themselves.
• 3:58
  SPEAKER_00: Accountants do have a deep understanding of property-specific tax legislations, but not all of them will do.
• 4:05
  SPEAKER_00: Normally you have an accountant that'll do your books and will help you with the tax that you owe.
• 4:11
  SPEAKER_00: But when it comes to capital gains tax, understanding stamp duty, understanding corporation tax, understanding SPVs, special purpose vehicle companies that you might be setting up, and any allowable expenses, a good property accountant or company or firm will probably need to have different departments to be able to help you with this.
• 4:34
  SPEAKER_00: Now, my accountant, for argument's sake, is a great accountant when just doing the books, when just doing my tax returns.
• 4:41
  SPEAKER_00: But if I do need to speak to him more about tax specifics, he has people that he can introduce me to and he does that I can speak to that are specifically a specialist in those sort of tax realms.
• 4:58
  SPEAKER_00: So one accountant isn't a one-size-fits-all.
• 5:01
  SPEAKER_00: It could be that they need access to different other specialists there, okay?
• 5:05
  SPEAKER_00: And you'll also find this with potentially solicitors as well.
• 5:09
  SPEAKER_00: Are they proactive in moving deals forward?
• 5:11
  SPEAKER_00: Are they a solicitor that specializes in property investing deals?
• 5:16
  SPEAKER_00: Now, whether you're buying properties or not, even if you're doing rent-to-rent, you're probably going to get, if it's your first rent-to-rent, you'll have a solicitor build you a contract, build you a management agreement or a commercial lease agreement.
• 5:28
  SPEAKER_00: People that work with me, they get copies of my commercial and management agreements so that they can take those to the solicitors and just have them cast their eyes over them to make sure that they're happy with everything.
• 5:39
  SPEAKER_00: Saves you a lot of money, saves you a lot of time.
• 5:42
  SPEAKER_00: But if you're just starting out for yourself and you haven't got access to those things, then you're going to get a solicitor to help you build that in.
• 5:49
  SPEAKER_00: Now, not all solicitors can do that.
• 5:51
  SPEAKER_00: You need to make sure it's a property solicitor that they specialize in these creative strategies.
• 5:57
  SPEAKER_00: Because even if they say, Oh, we can write you up something like that, if they're not a specialist in that industry, chances are they won't do a proper job for you, or it'll cost you twice the amount that it would cost you from a property solicitor because they'll have to do some research on this.
• 6:13
  SPEAKER_00: I also like to see how they manage deals.
• 6:16
  SPEAKER_00: So if we're looking at buying a deal and we have a solicitor who's going to be running through that, you know, how, how, what's the sort of time frames?
• 6:24
  SPEAKER_00: How long does it take for them to actually get things going?
• 6:28
  SPEAKER_00: Are they normally waiting for the other solicitors to get things going or are they proactively out there themselves?
• 6:34
  SPEAKER_00: Most solicitors won't be proactive.
• 6:36
  SPEAKER_00: We need to be the proactive one pushing them forward, making sure that that happens.
• 6:41
  SPEAKER_00: Because when you're using creative strategies to do property deals, speed is often a critical factor.
• 6:48
  SPEAKER_00: And you need a solicitor who is, if nothing else, responsive and understands the complexity of property contracts, like purchase lease options, joint venture agreements.
• 7:01
  SPEAKER_00: And of course, if you find the right one, they can help anticipate any potential issues rather than just reacting to those issues.
• 7:10
  SPEAKER_00: And obviously, it takes a lot longer to do.
• 7:13
  SPEAKER_00: Your power team should be an extension of your business, not just the service provided.
• 7:19
  SPEAKER_00: Okay, so make sure that they are proactive and that they are the right ones.
• 7:23
  SPEAKER_00: And if they're not, change them.
• 7:26
  SPEAKER_00: Look for other people.
• 7:27
  SPEAKER_00: Go out there, ask people who they use.
• 7:30
  SPEAKER_00: Who do you use for a solicitor?
• 7:32
  SPEAKER_00: Who do you use as an accountant?
• 7:34
  SPEAKER_00: Are you are they specialists?
• 7:35
  SPEAKER_00: If you're doing service accommodation, holiday lets, are they a tax specialist and an accounting specialist for that industry and that sector?
• 7:43
  SPEAKER_00: Because if they're not, you might be leaving a lot of money on the table, so to speak, or losing a lot of money in things that you should be claiming back in things and how things should be structured in your investment.
• 7:58
  SPEAKER_00: And of course, with builders, always do your research with builders.
• 8:02
  SPEAKER_00: Ask them to see if they've got any previous work, to see if you can speak to anybody that they've worked with recently as well.
• 8:10
  SPEAKER_00: Sometimes a builder that you can't get a hold of or that is a little bit more, well, a bit more busy at the end of the day, is busier, is normally a good thing because it normally means they're quite good.
• 8:23
  SPEAKER_00: If they're just not really good at answering the phone or getting back to you, chances are maybe they're not the best person for you to be working with as well.
• 8:29
  SPEAKER_00: But make sure you do your good due diligence on those guys and girls.
• 8:32
  SPEAKER_00: And we'll do another episode on due diligence and things, but again, they're part of your power team.
• 8:36
  SPEAKER_00: Do you trust them?
• 8:37
  SPEAKER_00: Will they do a good job for you?
• 8:38
  SPEAKER_00: Have they got the relevant insurances?
• 8:40
  SPEAKER_00: Okay, that's very, very important, depending on the sort of works that they're going to be doing on your property.
• 8:46
  SPEAKER_00: Are they insured to cover the amount of work that they're doing?
• 8:49
  SPEAKER_00: If, for argument's sake, they started doing work on the property and something collapsed, fell in, there was a major issue.
• 8:56
  SPEAKER_00: Have they got the relevant insurance to cover all of the costs of that?
• 8:59
  SPEAKER_00: Don't be afraid to see those documents as well and make sure that they've got their public liability, professional indemnity insurances, and all of those great things.
• 9:09
  SPEAKER_00: But a power team from a financial point of view as well, is it's not going to your local banks.
• 9:14
  SPEAKER_00: Your local banks or normally your local estate agents will say, Oh, do you do you have you have a mortgage broker?
• 9:20
  SPEAKER_00: They'll want you to go with their mortgage broker and have a chat with them.
• 9:23
  SPEAKER_00: Now, sometimes it can be good just to go and have a chat with their mortgage broker.
• 9:26
  SPEAKER_00: If for nothing else, it's great just to build up those relationships and things.
• 9:31
  SPEAKER_00: But make sure you don't go with a mortgage broker that's basically a high street lender.
• 9:36
  SPEAKER_00: You want an independent mortgage broker to be able to assist you in a lot of your different creative deals.
• 9:42
  SPEAKER_00: And an independent mortgage broker, i.e., one that's not based in a bank or not normally based in a letting or estate agency, should I say, they will only have a handful of lenders that they use.
• 9:55
  SPEAKER_00: Whereas an independent mortgage broker should have a lot more opportunities for you and a lot more openings for you and a lot more options for you because they will use and see the whole market.
• 10:08
  SPEAKER_00: You can find independent mortgage brokers that still only use a handful of these operators.
• 10:13
  SPEAKER_00: But if you want to get creative, if you're trying to do something a little bit different, chances are an independent mortgage broker where you go to a normal lender and they say we can't do anything like that.
• 10:22
  SPEAKER_00: We haven't got anything that we'll do.
• 10:25
  SPEAKER_00: We've got no lenders that will have that criteria that will actually use that or do that.
• 10:30
  SPEAKER_00: You go to an independent one, chances are it might cost you a bit more, but they'll probably be able to find you something to help you get started and going.
• 10:38
  SPEAKER_00: If you need any help with your property investing, do check out the propertyunleash.com.
• 10:43
  SPEAKER_00: We have free tools and resources there to help you with your property investing and moving forward.
• 10:48
  SPEAKER_00: And of course, we have my community as well, ETA Education to Action, where we can help you build your property business and we have a vault of knowledge in there.
• 10:57
  SPEAKER_00: So if you like these little tidbits that you get in these episodes, then you'll love that where we go and we dive really deep into the training to make you the property expert for your company.
• 11:10
  SPEAKER_00: I look forward to you joining me in the next episode very soon.
• 11:12
  SPEAKER_00: You take care and bye for now.