How I Earned £17k For Just 10 Hours Work!
Updated: Sep 24, 2022
That feeling when you login to your online banking and see a nice lump sum of money staring right back at you...
You never forget your first! (My Wife thought I was joking!)
My first fee from 'property sourcing' was around £17,000 and I thought sharing how I did it would be a good read if you're looking to get started in property...
I sourced a three storey property that was converted into 4 flats via contacts I had built up purely from getting out there and networking.
I then used my growing network to tap into (overseas investors) and I managed to find a buyer within a day. We arranged a call on whats app (as they were in Hong Kong) and I talked them through the opportunity and told them all about the property.
That investor paid a reservation fee over and then proceeded to buy the property.
When the purchase was completed, my sourcing fee was transferred to my business account.
That's it in a nutshell - but there is much more to this deal, so here's the nitty gritty!
How long did this take in total?
Around 12 weeks (If I remember correctly)
How many hours of work were involved?
Probably all together about 8 to 10 hours of actual work and when I say 'work' this effectively meant phone calls to the investor, to the solicitors, to the surveyor.
Attending the property to film a video walk-through. Chasing enquiries from solicitors to ensure delays were kept to a minimum. Oh and I also had to help the investors set up a ltd company and open a bank account here in the UK.
So all that work's out to approximately £1,700 per hour – the best hourly rate I ever earned!
What was the deal?
It was a big property that had been converted into four flats.
The flats all had their own utility supply and the key thing here was all the flats were on one property title.
This effectively meant they were sold as one property even though there were 4 individual flats in the one building.
I knew that by title splitting the flats so they could be sold individually would add a huge amount of value. This was the opportunity!
I had agreed a price with the vendor and knew what they would be worth if the titles were split into four. A damn sight more was the answer.
Crucially the uplift in value meant I could package them as BMV (below market value) to my investors. As If I sold the flats individually it would be much more than what we had agreed with the vendor.
The deal was a win-win for all involved - the seller got shut of a property he no longer wished to have in his portfolio and the buyers got a great property with lots of equity.
You have probably seen posts about earning silly sums of money from property before, am I right?
Well this is a little different... I like to live in the real world and share the good and the bad so read on below...
You might be thinking it sounds really easy! I title split the property and made a quick £17k!
I can tell you right now it was 100% definitely not even close to being easy!
The buyers were difficult to handle - constantly changing their minds, requesting more and more information, backing out, coming back to the table, agreeing the price, only to try and re-negotiate over something so silly you would not believe it!
The truth is… What should have taken us 2 weeks, took 5 times longer!
It was stressful beyond belief, it was a roller-coaster of emotions, I had sleepless nights became a pain to live with. I even gave up and thought it’s not worth it at one point! This was not easy and not as simple as I thought it would be.
Did I learn anything from the process?