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Influencer touring homes faces questions over if she's paid for posts

by Adrianna Grossman (2021-04-28)

Kostenlose foto : Technologie, Kunst, Entwurf, Marketing, Bearbeitung, Seo, Onlinegesch\u00e4ft ...

Young property developers who have gained a million followers on TikTok during the pandemic by promoting jaw-dropping properties are facing questions over whether they have been paid for posting online tours.  

Summer Newman, 21, who owns a property developing business with her boyfriend Matt Mellor, 23, uploads videos often set to hip-hop music on TikTok, YouTube and Instagram in which they tour luxury homes.

The pair recently toured the Knoll, a £4.75million house in Nottingham which boasts an underground swimming pool, cinema and spa, and are now being approached by estate agents to showcase other properties.  

They appear to make money by selling property investment training and guides, membership for a 'mastermind' club which costs £797 to join, and a 'comprehensive' 33-page e-book on home-buying for £29.99.

However, Ms Newman and Mr Mellor, from Rugby, Warwickshire, are facing questions over whether their lavish lifestyle is funded by their popular videos - and whether the posts comply with UK advertising rules.   

The advertising watchdog says posts by social media influencers must be labelled as adverts if a commission or payment was made to the creator. 

Representatives for Ms Newman and Mr Mellor said 'most of Matt & Summer's previous posts do not include any paid promotion'.

They added: 'Now their channel has grown considerably and results have been delivered to agents and developers, they are offering a paid service to promote properties on YouTube. 

'Matt & Summer are dealing with a very high demand of enquiries from agents and developers to have properties featured on their YouTube channel.'

Summer Newman, 21, who owns a property developing business with her boyfriend Matt Mellor, 23, uploads online tours set to hip-hop music on social media

Ms Newman, from Rugby, Warwickshire, pictured on a trip to Bali, owns a business with Mr Mellor and earns up to £10,000 commission by finding off-the-market properties for investors

Ms Newman owns the property developing business with her boyfriend-of-three-years

Summer Newman from Rugby, agency website design Warwickshire, who owns a property developing business with her boyfriend-of-three-years Matt Mellor shared her home investor advice on TikTok 

On its website, the Advertising Standards Authority (ASA) says: 'When a brand gives an influencer a 'payment' (i.e.

any form of monetary payment, free loan of a product/service, any incentive and/or commission or a product/service has been given free), any resulting posts promoting the brand become subject to consumer protection law enforced by the Competition and Markets Authority (CMA).' 

In a statement, their representatives told MailOnline: 'All paid posts include #ad clearly displayed in the video description and YouTube also provides an option to tick 'My video contains paid promotion like a product placement, sponsorship or endorsement.'  

'This box is always ticked on any of their videos that include paid promotion from an agent or developer.

YouTube will then display a message at the start of the video confirming there is paid promotion.'  

The ASA told MailOnline it has not received a specific complaint, so there is not a current investigation into their activities. 

However, the authority pointed out that if these videos did provide a commission to the creator, then they would need to be flagged as ads.

'As you know, the ad rules are clear; it must be obvious to consumers that what they are engaging with is advertising when the content has been sponsored/paid for/etc.,' a spokesperson for the watchdog said.


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'In most cases, the use of #ad (or similar) is the clearest way of communicating the commercial nature of social media content.' 

Ms Newman previously revealed on TikTok the secret behind her booming empire is finding rundown homes for investors that are not on the market in order to renovate them to sell on for a profit. 

Working to source homes for investors who pay them commission of up to £10,000, she 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, Ms Newman revealed that while a property they had 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 entrepreneur shares her tips on YouTube and TikTok, revealing how she finds properties to buy for below market value on behalf of investors 

The couple also help to market properties by doing vlog style tours on their YouTube channel, here Summer stands in front of a £1,650,000 home in Henley, Arden

Ms Newman revealed on TikTok the secret behind her booming empire is finding rundown homes for investors that are not on the market in order to renovate them to sell on for a profit

The couple began by sourcing properties for other investors

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

Explaining how the couple earn commission from investors, Ms Newman 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, 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. 

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

The pair enjoy a lavish lifestyle with luxury cars and digital marketing company exclusive vacations.

Pictured: The couple in a Bali tree house resort 

'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. 

Ms Newman 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.  

Ms Newman , 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 Web design 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.'  

Inside luxury kitchen within a home in Henley which they toured, which features sleek and sophisticated fittings in a modern space 

The couple make money using a range of niche property development techniques, including selling a guide of how to source properties 

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

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.' 

Ms Newman 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.'

Mr Mellor 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.'

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.