Deal or Finance: what comes first explained by Sarah Rapley
Last updated: 26 Dec 2023
In Episode 17 of Deal Finder's Corner, your favourite Frenchman, Guillaume Black, had the pleasure of hosting Mrs. Sarah Rapley. Sarah is a business success coach and an experienced property mentor with over 20 years of experience in property investing, private finance raising, and Wealth Dynamics profiling. As part of the Investors Network team, she shares her wealth of knowledge with Simon Zutshi's students and is also one half of Martin Sarah Replay Business, offering programmes such as Refurbishment Mastery to support property investors with their refurbishment projects.
Starting Your Property Investment Journey
Sarah's presentation was packed with valuable advice for property investors and deal sources. She delved into some of the most pressing questions that individuals face as they embark on their property journey. These include dilemmas like whether an investor or a deal should come first, how to structure deals, why investors would choose to invest in you, and the various types of investments available and where to find them.
A pivotal take away from her talk was the idea that when seeking funds, you're not begging for money; you're offering a valuable opportunity. This change in mindset can significantly impact how you approach potential investors and secure finance for your property projects.
Creating Your Marketing Strategy
One of the critical aspects of Sarah's presentation was the brief summary of marketing strategies and where to source funds and deals.
Marketing Strategy:
Define your marketing strategy to reach potential investors effectively.
Funding Sources:
Investigate various funding channels, including private investors (involve your friends, family, and leverage your social media presence to share your projects), companies with retained profits (consider networking events), SSAS funds (a sector that has seen significant growth in recent years), JV investors, and "maybe" investors (those who have expressed interest in your work).
Types of Deals:
Be inventive in your approach to deal sourcing. Explore Property Lease Options (PLOs), Below Market Value (BMV) properties, Delayed Completion deals, and use tools like Property Filter, which streamlines the process of targeting motivated sellers.
Deal Sheet/Business Plan:
Sarah stressed the importance of a concise deal sheet. This document should contain information about the opportunity, the deal itself, financial figures (including exit strategies), a brief biography explaining why you're an attractive investment, and ensure it reaches all potential investors.
Heads of Terms:
When structuring your property agreements, ensure that you capture all essential details, including the property address, names and addresses of both parties, solicitors for both sides, straightforward agreement terms, and comprehensive notes. Sending this document to solicitors is vital to ensure legal clarity.
Summary and Top Tips
Sarah concluded her presentation with valuable insights, emphasising the importance of creativity in your approach, the potential of Delayed Completion, the benefits of Property Lease Options (PLOs), Below Market Value (BMV) properties, the possibilities of Vendor Finance and Joint Ventures, the need to actively seek funds and deals (with Property Filter being a useful tool), the advantage of starting small to acquire testimonials, and a reminder to always keep your "why" in mind.
Sarah used a variety of case studies from her own portfolio to illustrate each example with cost breakdowns, ROI analysis, and strategies applied to close the deal. If you're looking to learn from someone who truly walks the talk, don't hesitate to check out Episode 17 of DFC here.
