Create The Deals No One Can See With Michelle Cairns
27 Sept 2024
Meet Michelle Cairns
Michelle Cairns is a successful property investor and a business partner at Your Property Network (YPN). With a diverse portfolio that includes flats, HMOs, and single lets, Michelle has mastered the art of creative deal structures, specialising in lease options and vendor finance. Having interviewed over 350 property industry experts, launched five training communities, and co-created the sold-out Property Entrepreneur Summit, she is a wealth of knowledge in property investing.
In this article, we’ll explore Michelle’s unique approach to property investment, focusing on how to create deals that seem invisible to others. Michelle shares her strategies for spotting opportunities, asking the right questions, and leveraging creative solutions to turn difficult situations into successful investments.
The power of education in property investment
Michelle emphasises how education played a critical role in her success. After reading “Rich Dad Poor Dad”, she realised the value of investing in property and knew she needed a backup plan for her teaching career. Attending networking meetings and mastermind programs fast-tracked her property journey, allowing her to generate £250,000 in cash flow within 12 months. Michelle urges property investors to continuously educate themselves, as this knowledge is crucial in identifying and capitalising on deals others might overlook.
"Education has been a huge driver and really has fast-tracked everything that I’ve done in my property portfolio."
Understanding what makes a great deal for you
Michelle stresses the importance of knowing your personal resources - whether it’s time, money, or experience - before deciding on a deal. She advises investors to look holistically at each opportunity and ensure the deal matches their current resources and goals. A great deal for someone else may not align with what you can currently handle, and forcing yourself into an unsuitable deal could lead to frustration or failure.
"Each deal is going to be very objective. You need to match your criteria and resources to the deal."
Creating deals by solving problems
Michelle's success lies in her ability to solve problems creatively. She shared a case study of a 10-bed HMO where she negotiated a purchase lease option by asking the simple question, “Would you be interested in selling in a few years?” This approach allowed her to secure a deal no one else saw as viable, adding significant value over time. Michelle encourages investors to ask the right questions and approach deals with a problem-solving mindset, as many lucrative opportunities are hidden in seemingly difficult situations.
"Asking the right questions can make you money and help you create a deal where one didn’t exist before."
Case studies and examples:
10-bed HMO deal creation
Michelle turned an empty, tired student HMO into a profitable deal by negotiating a five-year lease option. The valuation jumped from £350,000 to £525,000 over five years due to rent increases and light refurbishments. She leveraged investor financing to fund the refurbishment, demonstrating how partnering with investors can help overcome resource limitations and transform challenging properties into valuable assets.
Block of flats transformation
In another deal, Michelle added an extra flat by spotting an opportunity no one else saw. A spiral staircase transformed a single unit into two, adding £80,000 in value. This creative approach required minimal extra investment but resulted in significant returns. Michelle’s ability to see beyond the obvious and add value to properties through innovative solutions is a key lesson for any aspiring investor.
Vendor finance to fund deals
Michelle also shared how she used vendor finance to purchase a property with little upfront capital. By negotiating with the seller to lend her part of the purchase price, Michelle created a win-win situation where the seller earned interest on the loan, while Michelle gained control of the property without tying up her own capital. This creative financing solution enabled Michelle to secure deals she might not otherwise have been able to afford.
Actionable tips for property investors:
Get educated
Michelle attributes much of her success to her property education, from reading books to attending networking events.
Ask the right questions
Don’t be afraid to ask sellers if they’d consider creative options like lease options or vendor finance.
Think creatively
Look beyond surface-level property issues to find hidden opportunities, like converting spaces or structuring unique deals.
Leverage investor partnerships
If you lack the funds, consider partnering with private investors or using creative financing solutions to acquire and refurbish properties.
Conclusion
In conclusion, Michelle Cairns' approach to property investment showcases the power of creativity, problem-solving, and continuous education. By asking the right questions and leveraging unique strategies like lease options, vendor finance, and investor partnerships, she has transformed ordinary deals into extraordinary opportunities. Michelle’s career demonstrates that with the right mindset, even the most challenging properties can become highly profitable investments. Her advice to investors is clear: keep learning, think outside the box, and always be on the lookout for hidden value in every deal.
Watch the full episode with Michelle Cairns on our YouTube channel to dive deeper into her property strategies. You can also connect with Michelle Cairns on LinkedIn and explore more of her work on her Website.
Additional Resources
Unlock the Goldmine: Commercial Property Opportunities with Ranjan Bhattacharya
Transform Your Future: Master the UK Property Market with Cyril Thomas
Deal Finder's Corner is your weekly property talk show, proudly brought to you by Property Filter. Our mission is to equip you with the best resources by inviting expert guests to share the most up-to-date and effective strategies, tactics, and insights for finding and securing property deals across the UK.
