Let me ask you a question…
Have you ever, driven all over the country to meet up with potential investors, have a coffee or lunch in a lovely hotel coffee lounge and then drive home?
I had that bad habit in the past and so too have many of the people that I provide Property Sourcing Coaching. I made the same mistake until I realised that doing so does not put ‘cash in the bank’!
When you first start your Property Sourcing journey, of course, you are keen to arrange meetings with potential investors, after all, it is your investors that will put that ‘cash into your bank account’. But, if you fall into the trap of just having coffee or lunch meetings week in week out, and the investors don’t sign your Terms of Business and agree to work with you, the only thing that will happen to your bank account is that the cash in it will reduce fairly quickly; especially if the investors live miles away from you!
…So what can you do to stop this from happening?
There are a couple of changes that you can make to how you deal with potential new investors at the earliest stage…
- At first, contact, don’t immediately jump to arranging a face-to-face meeting, instead arrange a Skype or telephone call.
- Manage the investor’s expectations
The first call
The first telephone or Skype call offers a great opportunity to explain how you work, what you expect from the investor should you work together and gauge their responses before deciding whether it may be worth arranging that face-to-face meeting.
Some new investors will be fresh out of a Property Investment Training course and may have unrealistic ideas as to what their ‘cash pot’ is capable of buying. Be honest with them about the area that you Property Source in, if the investor is looking for HMO’s or Serviced Accommodation are those strategies already operating in your area successfully, if you don’t think that you will be able to help, tell them.
In enacting these two changes at the earliest point in your relationship your investors will understand how you work, what your expectations are and what you will need from them to fulfil your legal obligations; in that way, if they have doubts about your investor process they will let you know at that point.
If there are questions or queries about how you work then maybe send copies of your Terms of Agreement and possibly some guides on key areas for them to take a look at, then maybe a second phone call would be more suitable to iron out any further queries that they may still have. If the investor decides that working with you is what they want you can then arrange a face-to-face meeting.
Remember, some investors do mess around so don’t forget your time is valuable too!
If you are unsure or have any questions please get in touch and why not join my Facebook group Property Sourcing Compliance Support. I also have a book available to help guide you through all the regulations Property Sourcing Compliance.