Choosing the Right Area to Invest in Property

Video Transcription:

How do you choose the right areas? 

This is a massive question okay so we have a five-step process the five-step process is I start off with data yeah so I go online by actually three hundred twenty-eight postcode districts in the UK, one hundred eight data points and I download into a big worksheet and I analyse that and then it comes out and last time I did it which was about probably 12 15 months ago we got about 150 different areas I think it was slightly less than a hundred fifty areas and so what we did then is we then took those areas and we did what's called an area investment guide on each of those.

Now they're available for free on our website if you go on the website and then just go to the top and you'll see research and then property investment guides and they are all there okay and that is those areas.

Now I'm not saying invest there I'm saying based on the data yeah these the areas have potential could have potential yeah so once we've done that yeah so you've got the hotspots algorithm then you have the area investment guides and then what we have is what's called the ripple effect Pentagon okay and look hopefully, we know what the ripple effect is okay if not I've done a video on it but basically the ripple effect is simply that house prices the best fundamentals go up that becomes unaffordable so people who want to want to buy there can't go to the next space and they buy here and then that goes up and then those people have to buy there and that ripples out okay and it ripples out along fundamental lines which are things like shops, schools, transports, major employers and major investment okay not a ripple like a stone dropping in a pond and equidistance since it doesn't do that okay.

So we use the ripple effect Pentagon. The ripple effect Pentagon simply takes that concept and says write the best fundamentals are London zone one and two so if you can afford to invest there, invest there, if you can’t zone three four five if you can't then you've got our London commuter towns if you can't major cities if you can't major towns okay and what we do is we look at the current market and where things are going and we go right this is probably the opportunity area now here and within those you know let's say London commuter yeah within that area these are the areas we like to invest yeah then what we do the third step.

The first step is hotspots algorithm second step is the area investment guides third step ripple effect Pentagon fourth step is we go looking for deals and relationships and developers and agents than that sort of thing okay so if you think about it with Southall I'm already we're only doing deals there okay and but I'm spending more and more time in that area Manchester's another area that we're spending more and more time you know, In fact, we are about to open an office in Manchester you know so there are lots of things happening from that perspective when we go out and we get local and that's the key there get local yeah so either through our existing relationships or through new relationships we work out what's there.

Then and part of that is we do a DDInvests when we get local so on those areas and when we get that development we do  Due Diligence invest which is a research document specific to the development or to the deal that we're doing.

And then the fifth phase is the cash flow we compare it to our cash flow where we overstate in expenses and understate incomes so you can see what a realistic worst-case scenario is but you're able to through all your plan on though on the worksheet we work through all the yellow bits of things that you can change okay to adapt it to your plan how you want it to be.

So that's the five-step process that we use now there's a whole heap of other things you know there's little intricacies that we do that a lot of people don't do for instance when we're researching we call up as a landlord hey I'm thinking about buying in the area how much yeah you know say let's the rent a property how much to rent a property if I buy and all of a sudden that landlord so that agent is going to sell us up to the highest possible ranking yet for whatever that is in the area and then they manage our expectations down-sell up manage down yeah then what I do is I hang up and I ring back again yeah and I say I'm looking to rent in the area you know how much is gonna cost and they go sell down to the lowest possible thing and then when I meet them they manage my expectations up so somewhere between that figure and that figure is where the realistic market rent is so it's little things like that the little intricacies that we do and have done for many years that you know that mean we choose in those areas.

Now some of the other things is you know as part of that research we look for things like regeneration so we look for areas where there's massive regeneration massive change in fundamentals shop, schools, transport, major employer and major investment yeah and they're the areas that attract us because they're the area's over the time but we can see the greatest growth.

If you've got any questions whatsoever to jump on my youtube channel Facebook and just message me and I'm happy to answer them either in video or text or whatever and look guys be sure to subscribe to my channel be sure to comment and I look forward to seeing you if you want to come along to one of the webinars jump on our website and we are more than happy to chat through and the guys can take you through getting your own plan and your own strategy.

But let's face it it's all good watching youtube videos it's all good watching Facebook videos it's all good being on LinkedIn it's all wood being on the social media and learning all that stuff

but until you sit down and get down and dirty with your detail and how it affects you personally and the opportunities that you have to make a difference in your life and your family's life you know really none of it means all this education doesn't mean anything until you take your first step so get and meet with the team you go to and go there

book a meeting with team sit down with them get all your questions answered yeah it's not a sales pitch this is where we get your plan and we get you a strategy together and we actually work out what it is you want to achieve where you're starting out and then we work out how we can help you get there and you know what if we can't help you get him in that's fine.

If you're gonna choose a strategy that we don't get involved with fine you know what there's so much free education there that you can learn the fundamentals from you know I'm happy to give that away it's all for his there you know I've been doing this for years you know giving my education my free you don't need to go and spend 10 grand 30 grand whatever it is in you know two and a half three grand for a weekend you know to learn this stuff it's there it's available and it's you know if you're talking about my stuff it's very simple okay so guys any questions come back to me otherwise have a great day live with passion and look forward to chatting with you real soon.

Brett Alegre-Wood
March 2, 2020

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