Speed Up Deal Sourcing with Deal Criteria

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When you decide up front what a deal looks like TO YOU, you make quicker decisions, save time and communication with others becomes easier.

The end result is more opportunities, more deals and more income.

(Lots of my coachees burn hours of time ‘doing property’ but don’t make any progress - scrolling aimlessly through Rightmove, going on viewings, playing with spreadsheets…but not actually getting anywhere. )

Unfortunately many investors don’t know what a deal looks like and they waste time constantly starting from scratch...

"The Person Who Chases Two Rabbits Catches Neither” - Chinese Proverb

Investors don’t use specific deal own criteria because they:

  • Worry about missing out on opportunities (FOMO)

  • Get distracted by shiny pennies

  • Don’t realise the harm not focusing is having on their business

  • Don’t think they need to

  • Haven’t given it the time

If any of these sound familiar then read on…

#1: Brainstorm Your Ideal Deal Requirements

When you select an area / business model it’s important it suits your resources, circumstances and / or goals… 

Be clear WHY you’re investing in property and brainstorm what a deal needs to ‘do’ for you. For example:

  • Provide a monthly cashflow

  • Create a legacy for your children

  • Get you a fantastic return on money you have in the bank

  • Offer excellent places to live for a certain type of tenant

#2: Add Detail To Your Brainstorm

At this stage add detail to your requirements. Try these different areas:

  • Finances - ROI, yield, money required, money left in

  • Location - City, Postcode, Road, Area

  • Amenities - Shops, Employment, Entertainment

  • Price - Min and Max

  • Type - Terrace, Semi detached, detached, bungalow, flat, commercial

  • Size - Sq Ft, no. bedrooms,

  • Condition - run down, back to brick, opportunity to extend

BUT be careful!

A lot of people trip up here. They make their criteria too strict…

  • unrealistic amenity requirements

  • narrow price ranges

  • unachievable yield targets

or too open:

  • no limits on no. of bedrooms

  • huge price ranges

  • whole cities for location

To avoid these issues be clear about what is a ‘nice to have’ requirement (e.g. amenities) and what is critical (e.g. min 4 beds for HMO). 

Where can you flex and where are you strict?

#3: Apply Your Deal Criteria To Your Property search

Then begin applying your brand new search criteria.

Quickly discard those expensive properties, in mint condition that offer no opportunities. Niche down your areas and speed up your search. Only view properties that would genuinely work as a deal FOR YOU.

When you spend time on these three steps you will SIGNIFICANTLY reduce the time you spend looking for deals because you will be laser focused on what a deal looks like.

PLUS, setting specific deal criteria means:

  • property sourcing can be delegated to a virtual assistant (a topic for another day), so you have even more time!

  • conversations with investors are easier (you only invest in specific deal types / areas with similar cash requirements)

  • you can analyse deals quicker (you know your numbers based on previous deals)

When you create specific deal criteria, it’s like focusing a telescope so you only see what you need to and discard the rest.

All Systems. GO!

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