Where are all the great deals? Depending on your strategy you may believe you get better deals up North while I've often heard London investors claim it's hard to get good deals in the Capital. They're probably right; it is hard but it is certainly not impossible. One thing is for sure, there is no secret agent with all the good deals and there is no particular area that has more great deals than any other area.
I recently spoke at a property investment event and asked the audience what makes a great deal? The responses ranged from the Return on Investment (ROI) to location to leverage. However, in my opinion you need to take a couple of steps further back and look at yourself and your ability as an investor. The investor makes the deal great. Nothing else is required; the investor is the key to successfully sourcing great deals.
Would you agree that opportunity is everywhere? If so why aren't you doing more deals or even better deals? The challenge is spotting the opportunity and converting it into a great deal.
I believe there are four key elements to making a great deal; not all four need to be present for every great deal but I would
say, more times than not, that at least two need to be.
Do you have the local knowledge, including due diligence on the deal, and do you have the investment strategy knowledge. How well do you know your market? Do you know your market better than your competition? If you do you will undoubtedly uncover more opportunities than others. You will spot when something is under-priced or under-rented. How well do you know your environment in terms of planning? Do you know what is possible with particular properties and their change of use potential? Are you aware of the local council's plans for regeneration or new transport infrastructure upgrades? Have you completed all the necessary due diligence you need on the deal? Money, and sometimes livelihoods, can be lost without carrying out the necessary due diligence!