🎯How Sourcers Can Turn Dead Leads Into Paid Deals at Auction with Dewi Davies

Welcome everyone, so welcome to today's Deal Finder Corner. So this is your weekly property talk show brought to you by Propertyfilter, hosted by myself, Guillaume Black, your favorite Frenchman and the CEO and co-founder at the said Propertyfilter. As you know, it's the UK's highest-rated platform to find deals, and we are on a mission to empower our property investor deal sourcer members to find thousands of deals each and every year following the Propertyfilter blueprint. And the purpose really with this Deal Finder Corner is to give you more and the best of what's available in terms of inviting expert guests who will share with you the latest and most current strategies, tactics, and secrets about what actually works right now in terms of finding and making deals and the reality of running and systemising your high-performing business in property. So it is my pleasure today to introduce you to Davey Davies, who is down in South Wales in today's different corner. So Davey is a former TV cameraman turned property investor and auction specialist. After building his own back-to-date portfolio and renovating properties, he moved into the space of auction, where he now helps sourcers, agents, and investors to turn unsold deals into income. So he runs a growing auction business focused on turning deals into you know dead deals into cash for whoever introduced them to said deals. So what are we going to talk about today? So why why is it that a lot of deals fall apart? You know, I was with. Adam Lawrence just now, and he was talking about 53% of the properties you see on the market never sell. Where do they go? Right? So, and what really happens when a deal falls through, and how to stop you know this this leakage and losing income on on leads that are not going to to do anything. How you can use auction to create the urgency with the private sales you know that you can't have with a private sales or through through an agent, or if you work as a sourcer with Referring to an investor. So you actually got your own certainty that this is going to go through. And we're going to go through some practical breakdowns on how auction creates this urgency so that you can actually make the most of that. How to get paid on deals you would otherwise drop. So becoming an introducer and the exact process of taking basically a dead deal into a good auction. Turning them into a transaction that generates fee for you. We're going to talk about how you can position yourself to be the go-to property problem solver in your area, or to build reputation for solving problems, not just sourcing. But this is going to open doors for you with agents, developers, investors who need someone to trust in the area. And this someone can be you. We're going to talk about some real examples in the auction rooms, insights drawn directly from Davy's hands-on experience, showing you exactly how Or you can make the most of a sale in auction. And we're going to talk about smart exit strategies for your pipeline. So clear framework to plug basically all the leaks and monetize as many leads and deals as possible. And yeah, so it's going to be really cool. So then we're going to go into some Q&A. So very much looking forward to this. So please join me to give a massive Propertyfilter virtual welcome to Mr. David Davies.

So over to you.

I will share my screen to help you here, and we are good. Right, this is me here. Anything you want to add, David? Was it fair?

No, just to say thank you very much for the invite, and I'm very much looking forward to hopefully giving some insight into the auction world and how we can Possibly work together and hopefully get some more income for some of you sourcers who are out there and who perhaps are looking at deals and wondering why they're not working. And, you know, perhaps putting an auction could be a way forward for you.

Awesome.

So, yeah, thank you very much. So I'm calling this How Sourcers Can Turn Dead Deals deadlies rather, into paid deals at auction. So stop losing money on deals that fall apart. Auction is your exit. Can we go on to the next slide?

Yeah.

Yeah, so a little bit about myself. Guillaume did the honours. Thank you, Guillaume. I am an ex-television cameraman and worked on all kinds of properties, all kinds of programmes, but the programmes I enjoyed working on mostly were the property programmes. And by working on one of these property programmes called Property Ladder back in the '90s with Sarah Beattie, I started to realise that people were making a lot of money by renovating properties, buying at auction, and I wanted a bit of it. So, I started to invest in buy-to-let portfolio, and from there, I started buying at auction myself, renovating, flipping some of the properties, and I'm really proud to say that I never lost any money in any of the developments that I did. I made some good income out of all of them, and that was just learning as I went along, basically, by having good contacts, hopefully builders. You build up a reputation that people want to start working with you then. And now I run a property auction franchise called Town and Country Property Auctions. I'm a director of the company, and we help sellers achieve a quick sale, a quick, fast, transparent sale whereby, yeah, they can basically go against what the private treaty does. So it's a fast, transparent way of selling a property. Okay, so as a sourcer, I don't know, how are you finding properties at the moment? Are you finding it obviously through PropertyFilter? And I would have thought you're going through looking for properties that have been on the market for a while. We find that we do really well with properties that have been in the market for sort of 1 or 2 years plus. We've got some really good success stories where we've sold properties in a matter of weeks where other estate agents couldn't sell in years. Now, for me, if you've tried an estate agent for 3 months and you've had no luck, well, you've got to start thinking what's going on. Because we certainly, if we don't sell a property within 3 months, Well, we wouldn't advertise property for 3 months. We usually give it 2 goes at auction. If it doesn't go, then we move on, because it's 9 times out of 10 is price. So properties have been on the market for a while. Properties that have been on the market, advertised as sold or under offer, and come back on. And, Guillaume, one of the facts you were saying about the 53% of properties don't sell, I read somewhere recently that 33% of all properties that show as sale agreed don't complete. So 1 in 3 properties, there's 33 properties out of every 100 won't complete even though they're saying sale agreed. It's astonishing figure. Properties also then, the classic example of properties are the ones that have been reduced several times and keep on being reduced. They're classic auction material. And, you know, the biggest telltale sign is when a company's with more than one agent, you know, a dual agent or more. That's, you know, so those are the 4 telltale signs of properties that we would target as an auction house. And, you know, as a sourcer, that's what I certainly would be spending my time targeting them. So this is what a lot of people think that auction properties look like, and to be honest, that was one of ours. We sold that one recently— well, no, last year I believe we sold that one. That one had been empty for 30 years, and it was a former undertaker's, over 3 storeys, It had planning permission to turn into 3 flats, and we disposed of that quickly to an investor who is currently getting a builder on board to turn them into 3 flats. I'm really looking forward to that property coming on board. One of the other things I particularly like, you know, we all like making money out of property, But one of the things that gives me the most pleasure is when I buy a property in perhaps a rundown area and it's surrounded by other poorly presented properties. You do that one property up and the knock-on effect of that then is it could change a whole area. We did one before, we bought a flat and a mixed-use commercial building. We bought that, we turned it into a shop, rented it out. Like I said, this one had been empty for years and years and years, upwards of 15, 20 years. Got a new business in, got new tenants into the business as well. And because of that, that's improved the area. So, that's one of the other reasons I like doing it. If you can go to the other, next one then, Guillaume, thank you. So these are classic examples of properties that we have sold at auction. So as you can see, some of them are really nice properties. This one on the top left with a bluey wall, that's a bunch, block of 6 flats we sold for £860,000. I believe it was £860,000, up in Newcastle. To the right of that, we had a manor house, an 8-bedroom manor house. To the right of that again is a property that was on the market, one of these was on the market for over 2 years and had no luck whatsoever. We managed to source that property and spoke to the seller and they were motivated. Obviously, it'd been on the market for 2 years. Why wouldn't you be motivated after that amount of time? We agreed on a guide price of £350,000 and we did one viewing and I thought, okay, yeah, they're quite interested, but it wasn't having the response that I was hoping it would have. About a week or 2 weeks later, I had a message on Sunday, can we go and view, from an investor, can we go and view the property tomorrow? And usually when somebody asks to view the property the following day, I don't do it because 9 times out of 10, they're time wasters. But on this occasion, I thought, oh, do you know what, it sounds interesting, why not give it a go? We went to see it, he put an offer in straight away, but he said, it's an offer as long as we can complete within 2 weeks. And they offered £405,000, the deal was done, and they were in within 2 weeks, and they were in just before Christmas. Another example, the white house, the white detached house there, that was a 4-bedroom property that had been on the market as well with an estate agent over a year. The buyer contacted us on that one and said, listen, we just want to get shot of it. So we agreed to advertise it at £100,000. It had severe cracks, um, and, and potentially, uh, subsidence. But we, you know, we're not surveyors, so we don't know. But we advertised it as there were some nasty cracks there and it needed some, uh, further investigation. Um, it had been previously advertised for £375,000, um, but it couldn't sell. It wouldn't— they wouldn't get a mortgage on it. So we advertised £100,000. It went to auction and sold for £180,000. And the white house terrace there, the blue house next to that, uh, the terrace house, that was on the market for, um, well, the guy wanted £80,000 for it. Uh, he lives in Thailand. I phoned him up and I said, listen, you're not going to get £80,000 for it. That's £100,000— that's only worth £160,000 fully done up, and it probably needs about £70,000 spent on it. So I said, trust me, can we just try the £50,000? and let's see what happens. So, we advertised at £50,000. We had, on the day of the open house, we had 12, well, between 10 and 12 people turn up for viewings. Straight after that, we had offers on it. I went back to the seller and said, listen, we've had some offers on this, £60,000, £70,000. And he said, okay, great. But I said, obviously, I said, you said you wanted it to go to auction, so, uh, I said you wouldn't be interested. And he said, oh, hang on a minute now. He said, you didn't— I didn't realize I'd be getting figures like that for it. So, um, I went back to the people and said yes, he would accept a pre-auction offer. Cut a long story short, um, the £50,000 guide price turned into £88,000. So, you know, the top end of the property is only worth £160,000, so he did, he did really well out of that.

And next.

Okay, so there's a reason why the private treaty sales fall through, and that's because I could go and view a property tomorrow, I could agree a price, I don't have to do anything then for weeks, months even. And a couple of days before the exchange, I could just turn around and say, oh, you know what, I'm going to think about it, and it's not, it's not for me. I could walk away from the sale and there's no financial penalty to me whatsoever. So at auction, it's a level playing field. It's not favoured to the buyer as it is with private treaty. It's a level playing field for everybody. We provide a legal pack before the auction. Exchange happens before the hammer. It's usually a 28-day completion. The buyer pays a 5% deposit immediately and our fees, and it's locked in from that moment forward. It's legally binding, and the vendor gets certainty with the sale. If for any reason that the sale did fall through, then the buyer has lost his 5% deposit and the fees. It's as simple as that. So from a sourcer point of view, if you were bringing properties to us, there's certainty to you as well. So you get paid upon exchange, not on completion. But can we go on to the next slide? Thanks. So the traditional estate agents, they, they will start with a high price. They get their, um, properties by, uh, a lot of them do. Then I shouldn't, I shouldn't say everyone's the same, but a lot of the estate agents will go out there and get the, or give the highest valuation they possibly can just to get the sale. And then when the sale doesn't getting the interest. Surprise, surprise, they get the phone call, oh, it's too expensive, we haven't had the interest, it needs to be reduced. And it gets reduced, and it gets reduced, and it gets reduced. And by that time, buyers start thinking, oh, there must be something wrong with this property, it keeps on being reduced and nobody's bought it. So on the other hand, if they would have put that property to us, we would have started probably at the same price point where they ended up with the private treaty with the estate agent. We start at a lower price to encourage people to come and see it. So, give an example, if you were going home from work and you saw a property next to you come on the market, I assume that the majority of you would pop home, go into Zoopla, right, move it on the market and have a look at how much the property is going for. And if you thought it was expensive, that would be— or at normal, you think, okay, that's fine. But if you thought that was reasonable, then from an investor's point of view, you may think, well, I wouldn't mind going to see that property. And that's the whole point of what we do. We put a lower guide price just to encourage people to come and see it. People come and see it, it creates a buzz. And from that then, bids start coming in. So yeah, if we can go to the next slide, please, Guillaume. So, I've spoken a bit about the auctions, but, you know, what's in it for you, the sourcers? So, the minimum fee that, if you brought a property to us that you couldn't sell, or properties that have been, you know, you've walked away from, it'd be worth you looking at those, because The minimum fee you'll be looking at is £1,000 per property. You know, we go up to £5,000 per deal. We have recently done a deal with somebody who is familiar to Propertyfinder. We just paid them a fee of £5,600 for a property, and they received that within 48 hours of the exchange. So your fee is secure. So whatever happens, you get that fee as soon as you exchange. That money's yours. There's no going back from there. And basically, you don't get any drop deals because we charge 5% buyer's fees. Our fees on top of that then as well. So somebody who's prepared to put their money down are making a commitment. It's not like a private sale, a private treaty, where, like I said, you can just make an offer, walk away, not do anything for months, and then turn around and cancel it. If you were in that situation with us, then if you walked away, you changed your mind, you would lose your 5% deposit and your fees. It's non-refundable. So the benefits to the seller, you know, then it's a no-brainer. It really is a no-brainer because the way that we market ourselves, our USP is we don't charge anything to the seller. Our fees are paid by the buyer, even the legal fees. When you advertise at auction, you've got to provide a legal pack. Now, we work with a solicitor And they're auction specialists, and they, because we do a lot of deals with them, they will provide the legal pack to the seller free of charge. And if for any reason the property didn't sell, they don't have to pay anything. The seller doesn't have to pay anything, not a penny, even though the solicitors produce the legal pack. It doesn't cost them anything. And I think that's testament to us that we can, because we sell the properties, they can offer us that deal. We only deal with serious buyers only, so it's none of these people just turn up, rock on, or tyre kickers, as it were, looking at properties, you know, dreamers, want to have a look at this. You know, we're quite fair as auctions, but we're quite strict as well, so we don't take any messing about. We do things by the book. So there's zero seller fees, there's no risk to the legal fees whatsoever. We deal with serious buyers only, and it's guaranteed speed completion then within 28 or 56 days. And I say the 56 days is that if we do a deal with an investor, then potentially they would ask for a 56-day, unless they're cash, they could be, if they need finance, they'd ask for a bridging loan. So they could, just in case, to give them a little bit of leeway, they would ask for 56 days. I've done 70 days before now because it suited the seller and the buyer also. Okay. So, you know, if you're looking at your deals, at the ones that didn't sell, you know, why didn't they sell? Were they overpriced? Were they presented in a poor way? Were there any, you know, issues with the legal or structural side of the deal? Did the chain break down? Or, you know, by then the buyers start to get— they get frustrated with the whole scenario. So, you know, they sit in the market, they get frustrated, and unfortunately, if it doesn't sell, you don't— you you don't earn any money whatsoever. So the deals that potentially weren't any good or didn't go through with you, or deals you're thinking about doing in the future, you know, you could start looking at it possibly in a different way. Well, what I'm trying to get across is that Don't leave any money on the table. Just, you know, if you can get some money out of every deal, you're going to earn a lot more money than you are just by getting the deals to sell. Because the people are out there and want to buy properties. It's just a matter of finding the right people and finding the right exit for the seller. And, you know, auctions, the ideal candidate would be somebody who's motivated. Um, and you know, if a property that we find that does really well, the properties that do require work, um, for some reason people like to feel as if they, they need to do that work to improve the property so that they can make the money. A lot of times we sell properties in fantastic condition, they're just under market value. But sometimes people can't see that and they go into a deal or perhaps they overlook a deal whereby they think there's no added value to it so they can't make any more money. But that's not the case because it's all about buying at the right price. We had a property, it was a ground floor flat, we tried to sell it. It went on for about 6 weeks where we couldn't sell it. It was only £50,000 the seller wanted for it. It's been renovated. Um, a guy from Bristol came in last minute, um, and he started buying some Cedar properties from us since then. But he bought the property, £50,000. He spent £8,000 finishing the works, um, up to the standard that he wanted. Um, it's been rented out for a 5-year Fixed for £950 a month guaranteed, and he's had the property valued for £130,000. And that was a property that didn't need any— well, it only needed £8,000 of work. And everybody overlooked that deal because they just didn't see value in it. So just because a property may not look as if it's good value, then to some people it It is good value. Okay, so if you wanted to bring a property to auction, it's quite a straightforward process. All you do is phone up the auctioneer, hopefully you'd call me, and so identify the deal to start with. You know, we need to agree that it is suitable for auction. And then we— you need— well, either you or we need to speak to the vendor. We can be as proactive as you want. Some people we look after the vendor, others we don't. Some vendors, apart from the initial conversation, we don't deal with them because that's what the sourcer may want. So It's getting speaking to the seller again. The most important thing is the reserve price, but the guide price, that's what— that's the price that gets people in, that turns people's heads. And, you know, my job as an auctioneer is to get people over the doorstep. So getting the good reserve, the guide price, is the way forward. We prepare a legal pack and then we start marketing the property. So, yeah, so we advertise it and, you know, do viewings or whatever you want us to do, as you would do as an estate agent. And then the auction would come. So if you go to the next slide. Guillaume, thank you. So there's 3 ways we can sell a property. So we— the majority of properties that we sell are sold pre-auction. So an investor would come in before the auction, make an offer, and we're legally bound to put that offer forward to the seller. It's up to the seller then to decide whether they want to accept the offer or not. I've got a deal that I haven't advertised, At the moment, I put it out to an investor base that we've got, and a guy's come back and he's made a cash offer and wants to complete on it. So, I'm just waiting for the seller to come back to see whether he will agree the price. If he doesn't, no problem. We put it to the auction or wait for somebody else to come in with a higher offer. It's due at auction, or if it doesn't go due at auction, Then it would go on post-auction. Now, whichever way a property is sold, it is sold under auction conditions, 5% deposit, our fees, and you'd exchange straight away. So whichever way, pre-auction, during auction, post-auction, it's exactly the same. But like I said, your fees are secured from exchange, and payment is made within 48 hours. So there's various reasons a property could fall through. You know, it could be the finance, investor could pull out, or the vendor loses faith after some time. With us, the buyer arranges the finance before time. The competitive bidding means that usually, if we get it right, the auction, the property sold quickly. So, you don't get the investor hanging about then. And the same thing with the vendor. The vendor likes a 28-day or 56-day completion, so they don't get cold feet then. And they're also tied into the contract. So, the contract is for the seller and buyer. They're both bound under the same terms of 28 days or 56 days, as it may be. Okay, so, you know, as you can imagine, auction does create a buzz. We had an auction yesterday, and, you know, I, as an auctioneer, I still get excited seeing the bids coming in and the price going up and up and up. So, from— I understand it from a buyer's point of view, why they do get sucked into the auction and why we can sometimes achieve a higher sales price than somebody would at a private treaty. So, it's fixed date, there's competition for buying, There's a consequence if you don't complete, and there's a commitment. So yeah, okay, you want the next one? So you don't need to run your own auction. You're very welcome to come and talk to me, ideally. So, but if you didn't want to come to me, that's fine. But sources, you know, pick a company that they're not too big and they're happy to talk to you. And, you know, we're all about building relationships. There's some people who contacted us when they were starting off and they said, thank you so much for giving us the time. And those people have gone on and bought 6, 12 deals. from us, you know, sources or investors, and they keep on coming back. So pick your agents wisely, but there are some good agents around there. Okay, so just to sum up, The deals aren't dead, perhaps you just need to relook at them and consider putting them to auction. There's legal certainty, 5% deposit. I know I'm going on a bit now, but it is important and the process is very quick. So yeah, if you've got any properties that you perhaps would consider, put in our way, I'd be delighted to have a look at them. Like I said, we cover all parts of the UK. Ideally, properties, they need to be below market value or something where people can add value. Those are the perfect deals for us. But by all means, give me a call. There's my WhatsApp number. You can email me or contact me through Facebook. I'd be delighted to hear from you, and thanks so much for listening to me. I hope you've had some insight into the property auctions, and if you've got any questions, I'd be delighted to answer.

Thank you very much. Sorry, my camera is gone. What's happening here? Bear with me, bear with me just a second. One sec. Go, should be back here. I'm not sure what happened here, but yeah, thanks so much, David. That was great. And I'm gonna— what I'm gonna do is share your details in the chat so that people can save them.

Perfect.

And I'm gonna go through some questions. So thank you so much for that. I think that was quite refreshing, you know, to hear that you can make money in lots of different ways. And we're going to talk about— I want to ask you some questions about how, you know, like from, you know, like obviously with Propertyfilter you find properties where the exact 4 scenarios you mentioned, you know, like the sales falling through, been on the market for a long time, like these are all the motivation indicators right there. And you mentioned about the property needs to be below market value or there's a way to add value, but really it's more, you know, we don't have to negotiate the price necessarily for someone to introduce you this, you know, it's more in conversations with these vendors, especially if people send letters and things like that. You see that there is this need of certainty and speed, you know. So if there is this need of speed and certainty, there's like a ready-made process that already works with working with auctions and stuff.

Yes.

And then I'm guessing me as a sourcer/investor introducer, I don't need to go and negotiate the guide price. You know, I can just make the introduction with you and then you kind of— Absolutely. How would I qualify that this would be a good introduction? The vendor is in one of those scenarios and now they sort of want to get rid and achieve the best competitive price. What sort of question should I ask a vendor to prequalify them to you so that no one wastes time and things like that?

Well, number one is why do they need to sell? Why do they need to sell? And, you know, find out a little bit of background about them. Have they got another property to buy? You know, some people who maybe are looking to buy another property, so they're a lot more motivated to sell. I'm just trying to think now what else you could ask them. It's just general, you know, why, why, why do they want to sell? Um, yeah, that's, that's what I do is find out why they want to sell and take it from there. And, you know, just, just talk to people. That's, that's all you need to do is be human and talk to people and not, you know, um, what I, you know, like I've been gibbering, blabbering on there, my, um, In my spiel, but it's not a script. And I think that's the way you should speak to vendors as well, is to deal with them as individuals. Find out their pain, find out what it is. And a lot of the time you don't need to ask the questions because they provide the answers anyway.

You're putting words in my mouth, David, because I've got this in the Property Filter Blueprint. Step 1 is find motivated sellers. Step 2 is start conversations, remove the You don't need a script, you don't need a course. It's just like human-to-human interaction. And so that you can offer them options, offer them solutions. So yeah, that's bang on. And in terms of introducing properties to you, do I need to get set up as an introducer? Is there a formal process or it's just on the back of an email or WhatsApp with you? Say, I've got this deal, do you want an introduction? And that's kind of it. How does that work?

That's exactly it. Just get in contact with us and we'll take it one step at a time.

I think that's what I quite like about— it's why I got you up here, because I think people are sometimes— you, you— it's a bit daunting to go like to like big auction houses and things like that, and then they don't necessarily have the time. So it's quite interesting to see that, you know, you have the time to have the, these conversations and, and talk through the deals, you know. So that's, uh, really, really great. So yeah, thanks a lot for that.

Can I just say one thing, Guillaume? Right, I've got time. I've, I've always got time to speak to somebody. Our auction is the last Wednesday of every month. So Monday, Tuesday, Wednesday of the last week of the month is hectic for us.

So was it yesterday?

I had an auction yesterday. So yeah, so if anybody wants to contact me, I'd really appreciate if it's not the last week of the month.

So from the last Thursday of the month, then you're good? That's okay.

Which is today, right? That's okay.

Perfect. So I'm going to go through some of the questions. We've got David asking, so how do we send property? And also, do they go to auction? How do we introduce deals? So some of the things we answered. So how quickly do you then take things, you know, for us to position the conversation with a vendor? How quickly from an introduction can things get moving, you know, from your perspective? You know, you talk about the process where you then have a conversation with them about setting the guide price, then you start to do the legal work, the legal pack.

Yeah.

this process, how long does all of that take?

Well, there's a bit more structure to just taking property on and advertising it straight away. There's a few hoops you've got to jump through first, you know, anti-money laundering checks, ID checks, source of funds. We need to make sure that things like that are all correct. But within, you know, within a couple of days, if we start speaking to somebody and we think it's a deal, You know, we don't just take any property on, just to give you a heads up. We won't take any property on because we— it's pointless. I'd rather spend our time taking on properties that we think we can sell rather than properties that we can just, you know, pump out of the chest and say, listen, we've got 100 properties in our books or whatever. We don't work like that. We've got small volume, but because of that, then we can really concentrate on doing a good service to to our sellers. And they're not just a number. It's important to us that we do achieve the maximum price that we can for the seller. But yeah, send the property over, let's look at it, and we can take one step at a time.

Okay, awesome. And can you talk about the process of your conversation about setting the guide price, the reserve, and also maybe a little bit more broadly explain to people how this works and the 10% rules and all that?

Okay, so when it comes to— sorry, what was the first question again now, Guillaume? Sorry.

The question is, how do you go about setting the resale price?

The guide price.

Yeah, the guide price.

So we speak with the seller, and usually I'm not one for valuing a property. What I do, I put it back to the seller and say, listen, you know, what do you need to achieve? And that's one of the questions you could ask, after the why they want to sell, is what do they want to achieve for the property? Because at the end of the day, if I think that if the house is worth £500,000 and they want £1 million for it, it's never going to sell. I can be the best auctioneer in the world, but it's just not going to sell. So we need to be— it needs to be competitive. And we go off what's sold in the area, recent sales. Asking prices, we don't tend to go for, we don't value properties off asking prices. But if somebody says they want, this house is worth £500,000 and they want to achieve £400,000, £450,000, then we've got a good starting point of having a conversation. And so that's just, I suppose that comes with experience with talking to people.

Yeah, but this is something you do, right? So this will be your conversation with the vendor after the introduction, right? So it's not for me as an investor sourcer introducing, where he's going to talk and explain the concepts of guide price and all that.

Yes, but I can give you an example. When you said about the 10% rule and things like that, auction. So you've got 2 prices at auction. You've got the guide price, then you've got the reserve price. Now the guide price, say it's called round figures, we had a guide price of £100,000. The reserve price then can't be more than £110,000. So there's only a 10% leeway. So the guide, we could put a guide price of £100,000, the reserve price may be only £102,000. But it could be £100,000, but it can't be more than £110,000.

Okay, and the guide price is the marketing, you know, like, yes, come and get me price.

Okay, to turn people's heads. The other way of doing it is that you've got 2 prices. So if a property is once £110,000, we could put guide price £90,000. 110, or we go 90 to 120, but the, the reserve price has got to be within those 2 prices. So it could be, you know, if we advertise a property, a different property now, between 90 and 110, the, um, the reserve could be 91, but also it could be 110. So it's got to be within those brackets somewhere. So either 10% above the reserve 10% above the guide, sorry, or within the 2 price bands.

Yeah. And then do you find, you know, the lower the guide, the more footfall, you know, the more people turn up to the auction to come and bid? It gets people excited?

Yeah. Well, it's going back to that one. I give you an example where the house is worth about £160,000 when it'd be fully done up, and the guy wanted £80,000 for it, and I put it on for £50,000. And, you know, we had 10 to 12 investors standing there when I walked in. And, you know, that property was sold pre-auction for £88,000, 10% more than the seller wanted. And, you know, to be fair, was it worth that? I don't know. I wouldn't have bought it for that amount of money, but there we are, you know.

Mm-hmm.

Everyone to their own. I would have used a builder, so perhaps the person that bought it didn't need to use a builder. I don't know, but So yeah, but the guide price is so important and you can play the system as well. So there's means and ways of doing it as well. A lot of it comes down to trust.

And with your setup, do you sell in the room? Is it online? What's the— or does it work like, how do you work basically?

It's an online auction. It's the last Wednesday of every month. And our auction runs from about 12 midday till 2 o'clock in the afternoon. So it's only a short window. So if you snooze, you lose. You've got to be in it to win it, as they say. So yeah, 2-hour window. And, you know, but saying that, like I said, the majority of properties that we sell are sold pre-auction anyway. You know, I'd say 70-80% of the properties we sell are sold before auction.

Okay, okay, cool. And so I've got one last question from Abdullah here. So just to confirm, you don't— we don't need to secure the deal in one way, you know, we just introduce the vendor to you and then, and then, and then you—

Absolutely. You know, I, I, you know, I don't want people sending me every deal that's on, uh, yeah, yeah, obviously. Yes, it needs to be, you know, this, you know, you know, resources, you've got an idea, you need to do your due diligence as well to see whether property is good value. But if it's been on the market for a long time, then obviously there could be conversation.

Awesome. If you have any more questions, hit the chat. I think we went through everything I had so far. I did paste Davy's detail again as an image there, so make sure you save it and you get in touch and reach out with some cool deals if you want to sell in auction. And if there's no more question, Davy, I'm going to ask you, You got any sort of closing sentiment for the audience and people?

Yeah, basically what I would say is, you know, think of a plan B or a plan C. Because if you worked hard to find a deal, you know, it's not worth a penny unless you can sell it. So, I'd say, you know, think of it, of, you know, finding another way of selling a property that you can raise extra income. You know, even if it's a couple of deals every year, then it's going to make a difference. I got one sourcer who constantly is providing properties for us. When I first met him, I said, well, keep on giving me properties like this and I'll pay for your car finance. And that's what I've been doing. You know, I haven't been physically paying for his car finance, but it's been— I've been paying him the the fees he's been having more than covered his car finance. And he's got a very nice car, you know. So, you know, yeah. So, you know, even if it did pay for car finance, then, you know, or pay for a holiday or whatever it may be, it's, you know, as opposed to, oh, that deal didn't sell, move on to the next one. Well, you know, it could sell.

Because as an investor, you know, like we do all these— the thing with property, there's like a big lag between the amount of efforts we do and the reward sometimes. And sometimes a lot of this work just falls through and it's speculative. And this is really a way for anyone and everyone listening to this to be able to increase their momentum because they'll have a lot more exits. It's not just, I'm a sourcer, therefore I can only sell to this type of investor, or I'm an investor, therefore I can only buy what I can buy. And this is like, okay, I'm doing lots of outreach, doing lots of deals, having lots of conversations with people. I now got another way to monetize that. So it's not just selling to my investors, it's not just buying for myself. It's okay, I can now refer the right ones Uh, you know, to, uh, to Davy and, uh, auction houses and things like that. And, and the thing that does— that, that this does to you is, one, you get paid for a lot more. So you can do like— you probably can get 3 times, 5 times more referrals than the properties you could buy, you know. So, and 2, it really, it really, really helps you build momentum. So remember, in this game, you're in the game of building momentum. So the more you do of the right stuff, right? The more comes to you. Deals are coming like buses, you know, it gets easier and easier with the more, the more you do. It's easier to do 4 deals a year than 1 deal a year. It's easier to do 10 deals a year than 4 deals a year. But the problem is we are constrained by how much we can buy. Now you've got exits like that, you know, but you can, you can do 10 deals a year, right? Because you can refer all of this. And it means you build this momentum and more and more deals come to you and things get easier and easier. You build that momentum, right? So that's why I thought it was really, really important. And I've been looking for a really special guest. So I want to thank you, David, That was super clear and I really appreciate you coming up and sharing all of that with us. And I hope everyone here and you get to split some good commissions on some good deals in the future. So thank you.

Thank you, Guillaume, much appreciated. Really enjoyed it.

Yeah, and me, thank you. Appreciate it. I didn't appreciate that was auction week, so that's why I was chasing you for stuff earlier. I didn't realize you were buried under your own auction, right? So thank you very much.

It was yesterday, but We've been chasing some deals today, so it's a bit, it's been busy, but I managed to escape from and I've come home for an hour or so now.

So thank you. Good problems to have, I'm sure. So appreciate your time. Appreciate you coming up. Thank you, David. Thank you everyone. Have a great day. So in the meantime, don't forget to go back on PropsFilter, go and find your next deal, link up with, maybe if there's already stuff in your pipeline, that conversations you've been having with vendors already, that maybe are not the right fit for you, they're not quite ready for you, but, but they might, they might be happy with the idea of being introduced to a good auction house, you know. So, so have a think about that, you know. Thank you for joining us on today's Deal Finder Corner. I hope you enjoyed it like I did and look forward to seeing you next week with the next one. Uh, and yeah, make the most of this, uh, make the most of this, fill your boots, make money, do deals. Speak soon, bye-bye.

Thank you.

Bye everyone, thank you, Davy. Bye-bye.