UK property developer, 20, shares how she finds run down properties to do up

A young property developer has revealed the secret behind her booming empire is finding rundown homes for investors that aren’t on the market in order to renovate them to sell on for a profit.  

Summer Newman, 20, from Rugby, Warwickshire, who owns a property developing business with her boyfriend-of-three-years Matt Mellor, 23, took to TikTok to share her tips for finding a property with good developing potential.

Working to source homes for investors who pay them commission of up to £10,000, Summer filmed herself posting hand-written offer notes through letterboxes of homes she thought could be willing to sell-up. 

She revealed the secret is ‘writing one letter, photocopying it, and delivering it to run down properties’, and said she then just ‘waits for the calls’. 

The couple began by sourcing properties for other investors but now also own properties themselves, which they rent for profit in Rugby.

In another video Summer revealed that while a property they’d renovated could be sold for a £30,000 profit, you could make more in the long run by renting it out by the room – earning a £14,400 profit over the course of a year. 

The couple also help to market properties by doing vlog style tours on their Youtube channel.

Explaining how the couple earn commission from investors, Summer captioned her video: ‘A very simplified explanation on how Matt & I find below market value OFF MARKET properties & make a profit! #propertyinvesting #propertyinvestor.’ 

In the video the short guide explains that after receiving calls from people who are interested in making a quick sale on their property she arranges a viewing.

After doing ‘lots of viewings’ the guide advises developers to ‘offer on everything’, even if only putting in a significantly lower than market price offer.

It concludes: ‘Once you have an offer accepted, start the refurb process, add value, and sell for a profit once completed!’    

Later explaining the figures involved for the property featured in the TikTok on their Youtube channel, Matt & Summer, the couple said: ‘So the agreed purchase price was £125,000 and additional costs at the start of that were stamp duty and solicitor’s costs. If you are a first time buyer you won’t need to pay stamp duty. These both came to about £5,000. 

‘All in we are looking at £130,000 total purchase price.

‘We had a budget for the whole refurbishment of around £20,000, bringing the total spent to £150,000. 

‘We did some comparable in the area and based on what we’ve completed in the property the market value is going to be around £180,000. A £30,000 profit.’   

But the couple did not put the money up themselves, explaining that they had sourced the property for an investor who was ‘cash rich but time poor’, taking a fee from between £2,000 to £10,000 for helping them to find such a good return on an investment. 

Summer also explained that if she owned the property, she would rent it out by the room rather than selling it. 

She explained that renting the entire property would fetch around £850 a month, but renting it per room would bring in £1,800 a month.

Minus council tax, bills and the mortgage, this would leave a profit of £1,200 a month of £14,400 a year.

The couple also use this strategy in their own rental properties, which they own in Rugby.  

Summer, who attended school in the US before moving back to the UK, explained how she had first found her way into property development: ‘I  started when I was 16 in a lettings agency as an apprentice.

‘When we met as a couple we decided to do sales together, listing properties on a self-employed model, on commission only, working hard and hustling 24/7.’ 

The couple insist that ‘a lot of money’ isn’t needed to start investing in property, with Matt explaining: ‘There are so many no money down deals in property.’

Summer and Matt now live a lavish lifestyle travelling around the world staying at some of the most exclusive resorts in the U.S, Bali, Malaysia and Greece, and say they have created their ‘dream life’ together.  

Further detailing why their ‘letter strategy’ works, in a Youtube video, the couple said: ‘When you hand-write a letter it looks far more personal. It doesn’t look like any type of scam or marketing, it just looks like a personal letter to that owner.’ 

Summer then went on to explain what to write in the letter, saying: ‘You want to start the letter off with “dear homeowner” and you want to introduce yourself.

‘Say you are interested in a property in the area and the style of [their home] particularly interests you – this makes them think you are writing specifically to them.

‘Then you want to list the three to four main benefits of them selling to you.’

Matt continued: ‘These could be you have no chain [don’t have to wait to sell your own property], you’ll make an offer within 24 hours, and they will have no estate agent fees which could be thousands of pounds.’

He added: ‘It works tremendously, it really does.’

Summer added: ‘Try and sign off [the letter] with a female’s name, apparently there’s a higher call through rate.’ 

However Summer admitted that giving out her number to strangers has led to a number of prank calls.   

Matt explained: ‘Just be prepared for a few funny calls.’   

The couple say that the technique has a ‘mutually beneficial’ outcome for all involved as often homeowners are keen to sell quickly without advertising that they are planning to move.

After viewing a property the duo say that they calculate how much money will need spending to renovate the home before making an offer.   

By using the letter technique the couple say it allows them to strike better deals and get a better price as they do not have to compete with other investors on the open market or deal with estate agents. 

While the couple say they began by delivering the letters themselves at 6am in the morning, they now use a leaflet distributor to post the letters, paying £40 per 1000 leaflets posted.