Week 94: Adverts and Investors
Being a newbie in property I didn't have an array of investors I could pitch to. Most wanted me to prove my credentials via a long list of previous projects. This was a recurring problem which I'm sure anyone new to property will understand. Private investors are great but there is a journey to cross before you can make it here. So, what is the fuss all about I hear you say? Well, the interest rate is negotiable for a start, along with various other factors. You can set the terms to suit both parties accordingly. For example six months, one year etc. Provided everything goes well you can work with the same person/company again & again and build long-term relationships. As I have mentioned earlier these privilledges have to be earned, so what do we do in the meantime? Utilise your current network to start getting to know one another and how do we do all this? Well, advertising of course!
A snapshot of our advert below. This will be in a video format with tasteful images and lots of vibrant information. There will be a call to action at the end via our video sting.
Location: Wainfleet All Saints Skegness, Lincolnshire is an ancient port and market town on the east coast of England. The town is close to Skegness beach with high tourism in the summer and an abundance of caravan parks and cute bungalows in the area. Popular for pre-wedding Hen and Stag nights. It’s picturesque in the winter, has local amenities and a village feel with plenty to do.
Property: Lounge, dining room leading into the conservatory which leads into a large back garden. Large kitchen leading into the utility room and WC. Upstairs: Four bedrooms; one with en-suite and a family bathroom.
Area: The property is located in a conservation area in a quiet part of town.
Type of Let: The house will be let as a HMO to professional cliental. Original plan was to rent this out as a holiday let on AirBnB as given it’s close proximity to the beach. However, due to time scales and various other factors we decided to opt for shared accommodation instead. Though in the very foreseeable future we have decided our next purchase will be a holiday let on the sandy beach (or as close to) overlooking the sea.
Return On Investment: The return is dependent on the project and what the investor would like to get out of it. Different projects would be structured according to what each investor deems desirable. For the purpose of simplicity, we prefer a 50/50 joint venture partnership or the investor advances the funds for a fixed return.
Example 1. The investor puts in the capital as a joint venture partner on a shared risk basis, I manage the entire project and split the profit equally.
Example 2. The investor puts in £100k and I take care of the whole project and the investor will get a 10% return on top of his original loan i.e (£10,000).
Then how do we communicate all this? Easy, we have hired the services of a Social Media Marketing Manager and she will be responsible for showcasing our project & services on the net. The aim here isn’t to advertise but rather, to make our presence known. Don’t you just hate those companies that spam your inbox with nothing but sell sell sell? I believe in the ‘soft sell’ approach and a gentle nudge to anyone who would like to invest. I’ve been on the receiving end and understand that some may need more time to evaluate and think things through and that is perfectly okay. I will circulate little and often with ace content as quality vs quantity will always prevail for me.