How to Find Your First Property Deal: A Step-by-Step Guide for Beginners

How to find your first deal

Introduction - How to find your first deal?

  • :house_with_garden: Course Introduction – This course is designed to teach property development and due diligence based on real-world experience.
  • :mag: Challenges in Property Development – The instructor started with no knowledge and struggled with choosing the right location, avoiding overpaying, and making profitable investment decisions.
  • :books: Learning Through Experience – After extensive research, book reading, and completing a diploma in property development, the instructor refined a system for property selection and deal analysis.
  • :bulb: Why This Course is Valuable –
  • Provides a step-by-step system to identify profitable deals.
  • Teaches both free and paid resources to validate investments.
  • Helps eliminate doubt and develop confidence in property development.
  • :chart_with_upwards_trend: Growth Potential & Market Research – Understanding long-term capital growth potential is crucial in selecting a good investment.
  • :dart: Unique Approach – Unlike other courses, this program reveals every step, tool, and trick used in real-life property investment.
  • :trophy: Key Takeaway – The system taught in this course has been personally tested and refined and aims to make deal-finding second nature for learners.

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Benefits you will gain

  • :house_with_garden: Automating Property Research – Learn how to track signals for potential investment opportunities, including market trends, infrastructure updates, and news announcements.
  • :mag: Conducting Due Diligence Remotely – Gain the ability to assess a property’s potential from home, eliminating unnecessary site visits.
  • :bar_chart: Identifying Next Steps – Understand when to consult professionals like town planners, engineers, and architects to validate investment opportunities.
  • :world_map: Using Data & Mapping Tools – Learn how to collect and analyze statistics, mapping out key investment locations on Google Maps to distinguish good and bad areas.
  • :chart_with_upwards_trend: Spotting Growth Suburbs – Master market research techniques to identify high-growth areas based on data-driven analysis.
  • :earth_africa: Access to Exclusive Websites – Gain a curated list of trusted online resources to streamline property investment research.
  • :bookmark_tabs: Creating Investor Reports – Develop professional reports to present deals persuasively to potential investors for large-scale projects.

Where do I begin?

  • :fire: Identifying Property Hotspots
    • Learn how to identify suburbs with growth potential before investing.
    • Capital Growth is key to wealth generation in property investments.
  • :chart_with_upwards_trend: Understanding Capital Growth
    • Property value increases over time, generating wealth even while you sleep.
    • Developers should target properties in areas poised for growth, not those at their peak.
  • :bulb: Market Timing & Property Cycles
    • Avoid buying property at the peak of the market cycle.
    • Best time to buy: During market recovery or just before a boom.
  • :building_construction: Long-Term vs. Short-Term Investment Strategy
    • Selling too soon incurs high taxes.
    • Holding onto properties allows for greater equity accumulation over time.
  • :house: The Concept of Price Floor & Price Ceiling
    • Price floor: The lowest property price in a suburb.
    • Price ceiling: The highest property price in a suburb.
  • :bar_chart: Buying Below the Median Value
    • Always purchase properties at or below the median value of a suburb.
    • Banks value properties conservatively, considering worst-case selling scenarios.
  • :balance_scale: How Overpaying Affects Valuation
    • Buying above the median can result in lower bank valuations.
    • A property purchased at $600,000 may only be valued at $550,000 by a bank, leading to immediate equity loss.

Insights Based on Numbers

  • 250,000 - 1,000,000 β†’ Example of price range (floor & ceiling) in a given suburb.
  • 500,000 β†’ The median property price, which serves as a benchmark for wise purchasing.
  • 50,000 loss β†’ Overpaying can lead to a significant reduction in bank valuation, impacting investment potential.