
I am often reminded of the enormous difference between retail property investment and wholesale, and the latest example perfectly illustrates this point.
Retail investment is undertaken via portals such as Rightmove and Zoopla and through estate agents. It is the arena in which amateur property investors operate, and they pay either above or at retail market value for their purchases. As I often say, in many cases, excellent property deals don't see the light of day in some estate agencies. Only those who do not live in the real world don't understand this. It's one of the reasons I started buying at auction.
Wholesale property investment is in distressed assets, mainly through auction, though there are other routes too. This is the arena in which professionals operate and values are significantly below the retail market.
Here's an excellent, and current example which illustrates my point. Those of you who have my book (2nd Edition April 2024), turn to page 250.

One of my long-standing mentee clients purchased the above property after an auction ten months ago. It's EPC C, tenanted, and in excellent condition. With an increased market rent in late 2024, the yield is 16%. It was revalued almost immediately at 46% higher, though the investor couldn't draw down the funds for 6 months. At the time we both thought the revaluation was conservative, and indeed it was.
I often use this property on my workshops to illustrate how to target the unsold market for exceptional property investments.
An identical property (but without the external insulation) in the same road (pictured above) was marketed last week at £129,950 which is 100% or twice as much as ours for the same rent.
This is a cracking example of the difference between retail and wholesale investment, amateur and professional property investors. Don't be the amateur, you'll get to your investment goals much quicker buying at wholesale prices.
