Listen to this episode below:
Today I am delighted to be joined by Dan Buchan. Dan is a 25 year old property millionaire, having got into property as an alternative course after university.
Together with his business partner Jamie York he has grown a sourcing business that does in excess of £50,000 a month in deals, has £3.5 million in development projects, and now works on fully systemising all aspects of the business.
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Dan and Jamie are committed to their 70/20/10 strategy split which is split between 70% of their time on sourcing and selling BMV deals, 20% of their time on development deals, and finally 10% on simple flips.
Their We Sell BMV brand is a market leader in the UK, sending out between 3 and 10 different deals every single week. As well as pure below market value deals, they’re branching out to offer properties suitable for a variety of different strategies, and Dan mentioned one particular deal in the interview which he’d sold the morning of the interview, which was a serviced accommodation deal making them £4,000.
On the development side of the business these are typically much larger deals where Dan and Jamie work with other investors/developers. They currently have one in Isleworth and another in Surrey, one of which is a development of new houses and the other is a commercial conversion.
Their final 10% spent doing flips is working with someone else who manages the work on deals that Dan & Jamie have sourced and funded. This is a relatively new strategy for them, but already they’re scaling it up and are confident of hitting their targets of completing one flip every month.
One of We Sell BMV’s biggest deals was a portfolio of lease options that took a long time to build the relationship with the vendor but ended up paying off in a big way, to the tune of almost £100,000 profit for them.
With a business model where every pound spent returns at least £4 in profit, it’s a very lucrative space to operate in but has taken them a long time to build the knowledge, expertise and systems to get to this stage.
At the stage Dan was starting to regularly source more than one deal a month, their time was starting to get pretty stretched on one occasion around £23,000 of potential profit was lost due to simple mistakes and getting distracted by other priorities.
Whilst they’ve been able to overcome that loss and scale the business to a stage where they can handle multiple properties, it was a tough lesson to learn and still stands out in Dan’s mind.
What’s Your Favourite Book?
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The Checklist Manifesto – Atul Gawande
Daniel Buchan’s Links & Resources
Podio.com – Dan’s favourite software that he believes saves the equivalent of 1 or 2 members of staff
todoist – The app that helps Dan make sure his to do list gets done
We Sell BMV – Dan & Jamie’s main business focussing on sourcing BMV and other property deals
Aspire Properties – Aspire is the brand behind Dan’s development projects and flips
Email Dan Buchan – Got a question or looking for some advice? Get in touch with him here.