Latest / The Property Entrepreneurs Podcast with Alasdair Cunningham / Start With the Outcome: Choosing Your Property Strategy and Area

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Start With the Outcome: Choosing Your Property Strategy and Area · The Property Entrepreneurs Podcast with Alasdair Cunningham

• 0:04
  SPEAKER_00: Welcome to the Prophet Underprint Podcast.
• 0:06
  SPEAKER_00: My name is Doc Cunningham over 625 on the panel 700 plus other reviews I can show you in the right place.
• 0:13
  SPEAKER_00: Now if you're looking to build a property business, we're going to be coming to you every single day at 7am.
• 0:18
  SPEAKER_00: It's strategy, insight, and technique that work today.
• 0:21
  SPEAKER_00: Make sure you're following us.
• 0:22
  SPEAKER_00: We're on Spotify, Apple Podcasts, and Audible.
• 0:25
  SPEAKER_00: Let's cut on and let's build your business.
• 0:34
  SPEAKER_00: Hey, good morning.
• 0:35
  SPEAKER_00: This is Alistair Klinger.
• 0:36
  SPEAKER_00: This is the Property Entrepreneurs Podcast.
• 0:39
  SPEAKER_00: Now, today's show I want to talk about getting started in property and choosing the relevant strategy which suits you.
• 0:47
  SPEAKER_00: Okay, so there's a different strategy for every single person, and what works for one might not work for the next person.
• 0:54
  SPEAKER_00: And I just I really do you know what it is, right?
• 0:58
  SPEAKER_00: I speak to a lot of people and they they they follow what's called the golden coin syndrome.
• 1:06
  SPEAKER_00: Okay, so this is where you might see somebody else doing something and you think, oh, let's do that.
• 1:13
  SPEAKER_00: But then a week later you'll see old Jimmy Bob on social media, he's making money from Airbnb and Derby.
• 1:21
  SPEAKER_00: So you're like, oh no, that's my that's my strategy, Derby.
• 1:24
  SPEAKER_00: Um so we call it golden coin syndrome where you're constantly chasing what seems to be working for other people in relevant areas or relevant strategies.
• 1:31
  SPEAKER_00: And what I want to try to emphasize to you is every one of these successes that you might see online, every single one of them started off like you are right now, trying to figure it out, trying to work out what area works for them, what strategy works for them.
• 1:44
  SPEAKER_00: So all you can do then, remember, you're only seeing, you know, probably two or three percent of what they've actually done to achieve that level of success or whatever it is they're doing.
• 1:56
  SPEAKER_00: So just remember they all started off by identifying an area and identifying a strategy.
• 2:01
  SPEAKER_00: And I think that's what you need to look at and deal with right now and not get distracted by what anyone else is doing.
• 2:07
  SPEAKER_00: Like, quite frankly, it's irrelevant what anyone else is doing, it's what works for you.
• 2:11
  SPEAKER_00: Like, I've got clients, for instance, who live down south and they only want to do business down south.
• 2:17
  SPEAKER_00: Whereas I've got clients that live up north and they only want to do business up north.
• 2:20
  SPEAKER_00: So, you know, you can't compare um like for like because it's not a like for like comparison.
• 2:26
  SPEAKER_00: So, what I'd suggest you do, look, looking at your circumstances, looking at what it is you want to do and what it is you want to achieve, work backwards, right?
• 2:35
  SPEAKER_00: So, when you're looking to get involved in property, I want you to start with the outcome.
• 2:39
  SPEAKER_00: So, what do you want from property?
• 2:42
  SPEAKER_00: That's a question you've got to ask yourself.
• 2:44
  SPEAKER_00: What do you want from property?
• 2:46
  SPEAKER_00: Now, it might be that you want high cash flow.
• 2:49
  SPEAKER_00: So let's say you want to quit your job as fast as possible.
• 2:53
  SPEAKER_00: So then to do that, you need to create cash flow.
• 2:56
  SPEAKER_00: Okay, so then you've got to look choose strategies which create high cash flow.
• 3:01
  SPEAKER_00: But that might mean that you you get high cash flow, but you don't get capital appreciation because obviously to create fast cash flow from property, you know, it might mean not owning property.
• 3:13
  SPEAKER_00: So it could be doing things like rent-to-rent or property wholesaling.
• 3:17
  SPEAKER_00: Okay, so you know, these will create high cash flow, but you don't own anything.
• 3:22
  SPEAKER_00: So again, you've got to ask yourself, what do you want to achieve?
• 3:26
  SPEAKER_00: Are you are you looking for cash flow?
• 3:28
  SPEAKER_00: Are you looking to quit your job?
• 3:30
  SPEAKER_00: Are you looking to build long-term asset wealth?
• 3:35
  SPEAKER_00: I've got a client um and he's not fussed at all about cash flow on a monthly basis.
• 3:41
  SPEAKER_00: He's only his only concern is that the property is cash flow and enough to pay its bills, but it doesn't matter to him if it makes profit or not.
• 3:50
  SPEAKER_00: All he wants is long-term legacy, because he knows that the properties will always go up in value, and he also knows that um, you know, he's leaving it for his his children, so he's creating legacy legacy wealth.
• 4:03
  SPEAKER_00: So, you know, if him cash flow is not super important as long as it's paying its bills, um, but he's not looking for profit or he's not interested that much in profit, he's happy to, you know, have a good property in a good area, and as long as it's paying its bills, happy days with no hassle.
• 4:17
  SPEAKER_00: Okay, so you've got to look at what it is you're trying to do, right?
• 4:21
  SPEAKER_00: And and and start with the outcome.
• 4:24
  SPEAKER_00: What do you want?
• 4:26
  SPEAKER_00: Like if you dedicate time to this business, what do you want next year to look like?
• 4:32
  SPEAKER_00: And if you want it to be where you're making£5,000 a month, then you've got to start with strategies now that would allow you to achieve£5,000 per month.
• 4:43
  SPEAKER_00: So let me break that down a little bit.
• 4:46
  SPEAKER_00: If you're looking at buy to let, for instance, well, buy to let is not a highly profitable strategy.
• 4:53
  SPEAKER_00: So in order for you to create£5,000 a month profit from buy-to-let, you're gonna need a number of buy-to-let units.
• 5:00
  SPEAKER_00: So therefore, you're gonna need a number of deposits, you're gonna have to raise finance, etc.
• 5:05
  SPEAKER_00: etc.
• 5:06
  SPEAKER_00: But you could very quickly create£5,000 a month from property without ownership using property wholesaling or rent to rent.
• 5:14
  SPEAKER_00: And that's really what it is you've just got to think about.
• 5:16
  SPEAKER_00: Like, really think, what do you want from this?
• 5:20
  SPEAKER_00: You know, when I started out, I wanted cash flow.
• 5:22
  SPEAKER_00: All I cared about was just making money.
• 5:24
  SPEAKER_00: I wasn't even that bothered about owning anything.
• 5:27
  SPEAKER_00: Like I didn't get excited about buy to let's I didn't get excited about making£200 a month profit from a property.
• 5:35
  SPEAKER_00: I cared only about cash flow.
• 5:38
  SPEAKER_00: So I wanted high cash flow.
• 5:39
  SPEAKER_00: That's why I chose property sourcing.
• 5:41
  SPEAKER_00: And and even now, like you know, the properties that I own, um, they actually make really good cash flow.
• 5:48
  SPEAKER_00: Um they make really good cash flow.
• 5:51
  SPEAKER_00: But I don't rely on that cash flow.
• 5:53
  SPEAKER_00: Does that make sense?
• 5:54
  SPEAKER_00: Uh it's there and it it pays for things, but I don't like again, I don't rely on it.
• 6:00
  SPEAKER_00: Like, and I would just emphasize to you start with the outcome and figure out the plan to achieve whatever that outcome is as fast as possible.
• 6:09
  SPEAKER_00: Um so step one would be look, can you achieve that outcome in the area from which you live?
• 6:18
  SPEAKER_00: So if you live in, let's say, Portsmouth, are you able to achieve X in Portsmouth?
• 6:25
  SPEAKER_00: You can answer that question by doing your due dil due due diligence.
• 6:29
  SPEAKER_00: So then if you can achieve X in your chosen area with your, you know, with your circumstances and what you've got going on around you, i.e.
• 6:36
  SPEAKER_00: your finances, you know, what you want to do, then you've got to ask yourself, okay, is it worth me doing this strategy in this area, and then the goal is I can achieve X?
• 6:47
  SPEAKER_00: Now, often the case is the area which you live is not necessarily the best area for you to build your business in.
• 6:55
  SPEAKER_00: Um and I see it, I see that more often than not.
• 6:59
  SPEAKER_00: Um because typically the best property investments are not in the nicest of areas, and um, you know, a lot of a lot of my clients live in in decent areas and not, you know, they're not they're not living in these areas where the property investments work the best.
• 7:13
  SPEAKER_00: So when I when I started in property, I lived in Northamptonshire, which was a nice area.
• 7:19
  SPEAKER_00: Like the average house price is like£320,000,£30,000, you know, nice area, like there's not a huge amount of by reflee finance deals around there.
• 7:31
  SPEAKER_00: There's not a huge amount of demand for HMOs, for instance.
• 7:36
  SPEAKER_00: So I looked at areas where the average property price was less, so I uh I could do more.
• 7:44
  SPEAKER_00: Um also there was much more interest in the area from an investment point of view.
• 7:49
  SPEAKER_00: So investors actually wanted to invest in that area because it was kind of at the the the foot ready to expand.
• 7:58
  SPEAKER_00: Um and this was like 2017-2018, so you know I I chose area of Hull, and Hull at that point had just been granted city of culture from the European com uh community, so it got a big a big um expansion budget.
• 8:13
  SPEAKER_00: Property prices were only going to go one way, and there was a lot of economical shifting happening up there, there was a lot of things happening.
• 8:19
  SPEAKER_00: So I chose Hull because it was kind of, you know, a rundown, tired area.
• 8:26
  SPEAKER_00: Um, and I I I predicted it was going to get a lot of growth because of you know the money that was getting spent there, the the businesses that were moving there, and my due diligence told me that.
• 8:37
  SPEAKER_00: So I went to Hull and I ended up doing sourcing, and I was proved right.
• 8:40
  SPEAKER_00: Like the houses we were sourcing back then for£80,000 are now worth£120,000.
• 8:45
  SPEAKER_00: So they've not quite doubled, but they've certainly gone up by£50.
• 8:49
  SPEAKER_00: Like they they genuinely have.
• 8:51
  SPEAKER_00: Like one of my properties up there I bought for£83,500, it's worth well over£130,000 now.
• 8:57
  SPEAKER_00: Um, and another property I bought for an investor for£90, I know he sold that last year for£125,000.
• 9:03
  SPEAKER_00: He's done nothing to it apart from make money on a monthly basis.
• 9:06
  SPEAKER_00: So again, you've got to look at what you want from this.
• 9:10
  SPEAKER_00: What do you want from the business?
• 9:12
  SPEAKER_00: Like, you know, ask that question and then pick an area that works for that outcome.
• 9:17
  SPEAKER_00: Like, and just because your area is different to other people doesn't mean it won't work.
• 9:21
  SPEAKER_00: Like I asked, I had somebody ask me the other day, like, what's the best area for property investments?
• 9:26
  SPEAKER_00: Well, according to whose context?
• 9:29
  SPEAKER_00: You know, give me more.
• 9:32
  SPEAKER_00: Don't just say what's the best area, like, what's the best area for rent to rent for contractors, what's the best area for buy to let's what's the best area for HMOs, what's the best area for not getting stabbed?
• 9:42
  SPEAKER_00: Like, do you know what I mean?
• 9:43
  SPEAKER_00: Give me context behind it.
• 9:45
  SPEAKER_00: Like, give me context behind the question.
• 9:47
  SPEAKER_00: Like, I say to my clients all the time, ask better questions and you'll get a better response, okay?
• 9:53
  SPEAKER_00: So there's no definitive, this is the best area for property investments, right?
• 9:59
  SPEAKER_00: Every area has its ups and downs, everyone every area has pros and cons and its little nuances that make it good and make it bad.
• 10:07
  SPEAKER_00: You can make money in any area in the United Kingdom that has a demand for property, right?
• 10:13
  SPEAKER_00: And that is the vast majority of areas, like doesn't matter if it's in the north of Scotland, like Aberdeen, Aberdeen's got huge demand for contractors because of the the offshore, the oil rigs, the electrical industry, the oil industry, the gas industry.
• 10:26
  SPEAKER_00: Huge demand, okay?
• 10:28
  SPEAKER_00: But then same with like over at Norfolk, like you've got Sizwell, uh, same with over at um Incumbria, off um Barrow, you've got all the off-sea uh offshore um marine and the um naval bases and things like that.
• 10:44
  SPEAKER_00: You know, there's lots of areas that you wouldn't think are great areas, but actually turns out they are.
• 10:49
  SPEAKER_00: Your job is to identify which area works for your business.
• 10:54
  SPEAKER_00: Okay, and that's the tricky thing, and that's why you need help.
• 10:57
  SPEAKER_00: Okay, so hope you found today's show useful.
• 11:00
  SPEAKER_00: Go and find your area, uh, pick the strategy that works for what your outcome.
• 11:03
  SPEAKER_00: And remember, procrastination leads to nothing, overwhelm leads to nothing.
• 11:08
  SPEAKER_00: The only way you're gonna actually make money in this business is by getting getting off your fucking arse and doing something about it, right?
• 11:14
  SPEAKER_00: Stop thinking about it, stop overthinking, stop procrastinating, stop worrying, stop thinking other areas are better than my area.
• 11:21
  SPEAKER_00: Get off your backside, go and do something about it, make hundreds of thousands of pounds.
• 11:25
  SPEAKER_00: It's that simple.
• 11:31
  SPEAKER_00: That's it for today, folks.
• 11:32
  SPEAKER_00: Thanks for tuning in to the Prophet Entrepreneurs podcast.
• 11:35
  SPEAKER_00: Hope you got massive value from today's show.
• 11:37
  SPEAKER_00: Share it with a friend, make sure you're liking it, make sure you're following it so you get the notifications the next time the show comes out at 7am tomorrow morning.
• 11:45
  SPEAKER_00: Also, jump over onto Instagram and Facebook, drop us a comment, let us know what you thought of today's show, head over to AlistairPillingham.com for the main website to get free resources, free training, and keep up to date with what's going on in our world.
• 11:58
  SPEAKER_00: Remember, property is all about building systems.
• 12:00
  SPEAKER_00: Create a system, create a success.
• 12:02
  SPEAKER_00: That'll take tomorrow morning, 7 a.m.
• 12:04
  SPEAKER_00: nice to chart.
• 12:05
  SPEAKER_00: Now go out and make your business as a test.