Regardless of where you are on the wealth scale, getting deals alongside the Smart Money is a great way to lock in returns but it takes this one thing to guarantee success!
For more UK property investment tips and London property investment guide, visit Brett’s Blog https://www.gladfish.com/blog
For more investor and landlord updates check out www.gladfish.com/covid19/
If you are sick of your agent not responding then give us a call 01522503717 or www.ezytrac.co.uk
Hey, guys so just want to follow on from a conversation that I had or being actually having a few different people and I mentioned a couple of my videos that but I just want to make it really clear and make one video about it and that’s about smart money versus the herd. And really where do you sit.
So we have three phases if your life of opportunity. The first phase is generally when the smart money gets in. These are people are watching the markets they know the markets they’re educated and they get in really early and they’re the guys that get the best deals. Then what you have is the institutional investors. The institutional investors generally buy the smart money. They’re slower because have more due diligence, they don’t want to take as much risk because its other people’s money and that sort of thing. So you know you have the smart money then your institutional investors and then finally you’ve got the herd or in finance terms they will be called retail investors if you like.
It’s interesting because you know right now I have my property mates and I’ve got my you know shares and stocks and the financial market mates and so they both talk the same language. It’s amazing how they have the same language, they call things a little different. I call them heard and I call them retail investors, you know same thing just different marketplaces it’s exactly the same model. The smart money followed by the institutional investors followed by the retail or herd.
The question is where do you want to be? I’m not saying because I said the herd but generally, you know you can be at the start of the herd, you can be at the end of the herd, you be following the newspapers because generally if you read the newspapers by the time that these articles are coming out that is you know effectively when the herd gets in.
The smart money right now as we stand is starting to come to the market. I’m not talking about the finance market I am talking about the property market. And certainly in the UK what we’re seeing now is the smart money is starting to get ready and get poised to strike. We haven’t seen any drops in house prices really we haven’t seen the really good opportunities coming to fruition because the government has largely propped up now. With that prop up you know now drops off the face cliff whatever happens. We’ve talked about the 300-year recession and what they mean by that all, you know the worst recession in 300 years.
The bottom line is here smart money is now here. Okay it’s ready. As I said before and we have about 60 million pounds in play where smart money’s just sitting back it’s not jumping and buying stupid crap I mean, the reason I can talk about this the reason I’m involved with money like that is because I’m not one of these agents that say oh yeah we’ve got a deal for you. It’s like no you hang back.
Now most of our investors will be considered retail investors they’re not institutional investors that’s not really our game you know not to deal with institutional investors something that I’m looking to do on the side but that’s a different business and different thing. But the reality is that most of our investors would be considered if you looked at them as retail investors. That doesn’t mean just because somebody says based on the amount of money or the type of deal we’re looking for a single unit or whatever there that you’re a retailer investor. Yes, you may by definition be a retail or you know that investor but the reality is you can still get into the smart money. But the smart money is getting in now they’re having the conversations they’re putting the feelers out, there getting the funds ready that ready to move. That is what defines smart money.
Institutional investors, it’s something bit different they are actually investing on massive volume okay they’re after volume deals. They can’t buy one unit here and there. And that’s a good thing it’s good that they have to buy the bigger stuff because that leaves the littlest stuff for guys like you and me. The retail investors by definition but it’s your actions that determine whether you’re smart money or a herd. Herd follows everyone else in and generally gets slaughtered.
Smart money gets in when the deals are good all right. So where do you want to be? you want to be smart money. It doesn’t mean you have to jump in straight away, you know because if you jump in too early it might have to ride that way down. Smart money is prepared to do that depending on their strategy yeah because they may be playing the long game. So they may have a portfolio where they’ve got some short-term investors to hope they pay off but they may not be able some long-term investments. So this is where we start talking portfolio strategy I mean it’s not giving this in your head you start realizing that you can be a retail investor but play with the smart money the big boys. I’m not talking that big boys as in the million-dollar deals and plus you know and that I’m talking about how you think because that’s the important thing in this game.
Now it’s time to be chatting with the team. Now’s the time we’re getting out there and looking at going how long this headline what does that mean let me get into the detail of the thing. What does it mean 300 worst recession in 300 years. What does that mean what’s the opportunity that’s what smart money’s doing. That’s the thinking behind smart money yeah they act a lot earlier but they do a lot generally a lot more research and due diligence and then it in the market before they move.
So it doesn’t mean getting in the first yeah it maybe, you may come across that but generally where I find certainly, it when I started my real estate investing career it took me three months of building relationships. Basically being in estate agents back pockets to get the deals that I got. So it’s not about being first to the deal, it’s about being there when the deals start and then picking the deals right for you.
Anyway, guys where do you want to be? even if you’re a retail investor by definition you still want to be smart money thinking and smart money approach and smart money due diligence. So if you’re interested and you’re looking at and you’re thinking about doing something you’ve got some cash your current portfolio, you’ve got to know something to invest. Start having the conversations now because that will open you up to the opportunities and then the opportunities will come to you and that’s where it is short order and whether that be two years five years you bought at the bottom of the market you may drop a little bit but it’ll come back. Because you’re buying good fundamentals you go all of smart money ideas and attitudes and practices and disciplines.
So hopefully that gives you a bit of an indication of where we are in the market. The herd if anything is staying out right now. These institutional investors are starting to look. The smart money is starting to look and has been looking but they’re poised to move and they’ll move first before the institutional investors followed by the herd.
All right, guys, have a great day remember don’t forget if you have any questions in the comments otherwise make sure you subscribe and we’ll chat really soon see you later bye