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Hey guys.
[xx], author of the
best-selling book, the three [xx] and sharing the [xx] secret.
Today, I want to comment,
how can we get the discounts
that we do get from developers.
working with you.
So coming down to discuss that.
How do we get [xx]?
Look, I'll break it
down to the three key
factors, ok and this makes it really simple.
Why can we get discounts where you as an individual can't?
Well, quite as simply, because we're buying in bulk.
So, it's not a case of
others just going negotiate
one property or, you know, two properties.
We're buying five, ten, a
whole block, or a whole development.
Okay?
So that bulk aspect gives us
the ability to drop
the price or to bring their price down.
The other side to the relationship,
a lot of these developers
I've been working with 7, 8, 10 years.
You know.
I've know them.
We've been to lunch.
We've been to drinks.
We've been, you know...and maybe
not so much now do I go
out drinking or things like that
with them because they're a little bit older now, a little over 10 years.
And now all those people that I
knew previously have moved
up into management position, they've got kids, all that.
The fact is that relationships built.
It's not something you can just walk in and say, "Give me a discount."
Whereas, I can probably, maybe
not walk in and say,
"give me a discount", but I can
certainly use that relationship to
get your foot in the door
and certainly, when you add them both,
and the other aspect which is the speed, okay?
And what this means is
effectively, we can get things done a lot quicker.
If it's you having to go
out and find your own mortgage,
find your own solicitor, and
not really understanding the process,
that can make the process
longer, whereas because these lease
developers know they're working with a
company like YPC, what happens
is they know that we
can get stuff done quicker because
we're managing the process, we're educating you.
We're getting everything in there.
Now let's take a look at, you
know, when we talk about how
you get discounts, the best way
to look at it and view
it is a timeline, okay?
So if we look at a site, we can start here with the developer buying the land.
Now, you know, they
might have already bought the
land, but let's say they're buying the land.
There's an opportunity there, okay?
So first opportunity.
They buy the land, they want to get
some funding on the land,
so then what they'll actually say,
"Hey, if you can
get some buyers that will commit
to exchange, then we
can look at doing this again."
So effectively, all this
period up to phase
one, this is all what we call off plan.
And in fact, all the way down to here is off plan.
And then we have
the completed stuff or
in Asia you call T.A.P. or temporary
authorization permit, down here,
but it's basically first thing when buying the land.
Then we actually had a
lot of architects to give
us sites on behalf of developers,
so they can get rid
of 10% of them, and now the bank can say, look, 10% is already exchanged.
So there's all these sort of things.
Then you come to the funding to build.
So the developer now has the land, they've got the architect, they've got the planning.
Everything's ready to go.
Let's break dirt.
Okay?
At that point they say, "Well,
we need some funding, that the
bank committee is not gonna
try into funding so,
they can give us a discount
because we're getting it prior to building, we're getting in Phase 1."
Then you've got marketing urgency.
Now, what happens with a
lot developments is prior to us
launching the property or
prior to launching, say, in, you
know, wherever, it might be
international markets or it could be
in the UK, they'll come on to a company like us and say, "Hey, Brett.
Listen, can you sell 20 of these?"
Because if you can sell 20
of them, we can then
say, "There's 20, you know,
10% sold in one afternoon or one, you know, weekend."
Because that's the sort of
speed that we can move
the sales, and then they can launch.
And they can put a big thing saying
ten percent sold in one weekend, alright?
So the marketing agency we
help them out with then the other side
of it is to meet targets and enhance bonuses.
The number of times I have had finally saying "Brett, I need a favor.
I need to sell
10 of these by the end
of the month, can you do
it, you know, and then obviously
we can negotiate a price because
we can move again with speed."
All right?
So this is where they see I've
got cash prize looking at
between all of you guys, the whole low view.
I can find cash prize.
I can find people to move quickly.
I can sell quickly because we've already got that relationship built.
And what that does is it allows us to get in there and get discounts, all right?
Then you've got unable to complete.
So we're now down to number five down this.
This is the stuff that's completed.
This is no longer off plan.
This is completed stuff.
And what we're talking about here
is the number of people
that buy property speculating, especially
when they buy it, they
expect it to go up and then
they want to actually get rid of it before completion.
Then what happens is, whatever
it is, they have to sell it
are now unable to
complete because perhaps they didn't have the money or whatever, change of circumstances.
Then we'll have this.
The developer will come on and say, "Brett, I have an exchange on this.
Can you get rid of
it quickly because I want
it in for my numbers so I
can get my bonuses and make
my targets for a specific date."
That 's not all for universe.
And the final opportunity is the
quick exit.
Okay?
And that means we're right down to the end,
it's coming to the
of stage where they want get off
last few apartments, and
what I will do is
say, ' Fred, listen I have
got ten more of these to
get rid of, once I get
rid of ten, I can shut up shop at the display home.'
or whatever and I can get off site and move on to the next one.
So, obviously, negotiation - we can do that.
So guys, I think you
sort of really good
idea about where we get the
discounts and why we get them you know.
Look, bulk, relationships, speed.
there is three key
concepts and three key things
that we can offer, but
you individual can't necessarily offer, o.k.?
And look, you know, we've been
doing this a long time, so a
lot of these relationships we
go back the same developers, doing the same or similar deals over and over and over again, o.k.?
Because they know us and that relationships built.
Plus they know we operate with
speed and that's why sometimes you're gonna find that actually things move pretty quickly when you buy property.
Why?
Because that developer will have deadlines.
And the reason they're
giving the discount is because wants to
meet at once.
So, guys, hopefully that gives you
a really good air in the city and
you can see just why we
can get the discounts and why we're
so focused on new build.
You know, because at the end of the day, that's the business decision I've made.
I think it's easier.
And I'll tell you, the stress
is out of my life a lot since
I've done that and it'll be
out of the investor's life
too and out of your life because you won't have those hassles.
Okay guys, have a great day and remember live with passion .