¶ Maximizing Property Deal Opportunities
How to make money from property deals that you find that you don't want to do yourself . Hello , my name is Mark Fitzgerald and it's great to have you joining me here , so we are going to cover some of the fundamentals today on why you may be missing opportunities to make more money in your property business . Now , what do I mean by that ?
Well , there's great opportunities out there for making money from property deals that you do not want yourself . Now , what do I mean by that ? Well , firstly , you need to be able to go out there and you need to be able to find great deals .
There's a platitude of opportunities out there at the moment and , of course , you should be getting out there speaking to agents , speaking to landlords , speaking to vendors about properties that are for sale , that are for potential creative strategies like purchase , lease options , rent to rents and things like that .
The more opportunities and the more people that you speak to , the more chances are you will of finding those great deals . But you need to be able to stack the numbers on those deals as well . You need to be able to work out for yourself that a deal is a good deal in your area . So how do you do that ?
Well , look at the market rents in that area , look at the house prices in that area , whatever . How do you do that ? Well , look at the market rents in that area , look at the house prices in that area . Whatever strategy that you're doing , make sure you are the property professional of that strategy .
If you need any help with that , then do reach out to us , because we can help you really nail down what it is that you're doing and how you should be doing it . But on top of that , you need to also work out how you can negotiate good deals with the sellers and , of course , with the agents as well . You need to know how to secure those deals .
But once you do , you could then look to either do those deals yourself or you could package those deals up and sell them on . Okay , as long as you've done all of the due diligence that is needed , you've worked out the figures and you know that deal is a good deal , then people will pay you for finding them good deals .
So as long as you know how to do your due diligence on any property deals that you're looking at , you know that the numbers work , you can secure the deal . So it's not just out there on the open market . This is a mistake . I see a lot of people trying to do .
This have is that they think they've secured a deal just by word of mouth happy days whereas they haven't actually secured anything . It's still on the open market , which means that anybody else can buy it . You need to be able to secure those deals , get them locked into a little agreement with you so that you can pass those deals on to people .
Pass those deals on to people Now . If you don't want to do the deals yourself which is predominantly what we're talking about here you should be looking at keeping all of the best deals for yourself , but some of them won't suit your criterias and , of course , those are the ones that you want to be passing on .
Maybe it's not a strategy that you like to do , maybe it just doesn't fit in line with your own property portfolio , and , of course , then it's great to go out there to meet other investors , to be able to network and , of course , to be able to pass those deals on .
Now you do need to make sure , before you start doing anything like this , that you are a compliant property sourcer , deal sourcer , deal trader , no matter what you want to call it If that is something that you're going to do full time .
I have , in the past , passed the deal on to my fellow investor friends and they have given me a fee , but that is just because we're mates and they've just given me a little reward , so to speak , but nothing that means that I need to be compliant , that I need to set up as a business , and it's not amounts that are ever going to be life changing or make
you go woo , woo , woo . But , of course , if you are setting this up as a business and you are going to be getting those big or large amounts , you need to make sure that you are a compliantly set up deal sourcer . We've talked about how you can do that in other episodes , so do check those out as well .
But here I'm just saying that you need to be making sure that you're getting the most from it . So why wouldn't you do the deals yourself ? Well , sometimes the deals can be too big for you or potentially , if you're on to bigger deals , they could be too small for you . So you could pass those deals on .
Maybe they're outside of your investment area , so you're thinking to yourself I don't want to travel over there , I'm not interested in that area , but this is a sweet deal . You can , of course , find people in those areas to buy the deal off you . It doesn't fit your investing strategy .
Maybe you're doing HMOs and this is more of a serviced accommodation , or vice versa . It doesn't fit the needs of your business . So look for people whose needs it fills .
You don't have significant resources or funds available at the moment to be able to do these types of deals , so sometimes you might have a few things going on , or you might be new to this and just starting out , but you haven't got the relevant funds to do this .
You can , of course , pass these deals on and start to build up your own pot , start to build up your own finances , and this is why . So looking for investors or potentially even JV partners when it comes to these sorts of things is great , because most investors will run out of money , will run out of their own money at some point .
Unless they've got big backing , unless they've got a pool of investors themselves that they're working with and they're very good at recycling their cash out of the deals , they will at some point run out of money and , of course , you can do more deals with other people's money .
So if that is the case , that you find an investor who's willing to back you for doing good deals , then of course you can use your expertise to find those great deals and you can keep them for yourself .
But if you can't do that , then passing on and selling deals is a great way to continually bring yourself some income , some cash flow , if you like , back into your property business and help you with this .
And of course , always try and look to maybe do a joint venture , maybe just get an investor involved before you ever look to sell any of these deals on and stuff , because if you can keep hold of the deals , the value and the money is of course , over time .
You get the cash flow now if it's a good deal and it makes good cash flow , but of course you get the capital growth over time and if you keep selling those deals on , you're not getting the capital growth . You're getting one hit of cash . You're not even getting it month on month .
So do look at ways of how you can sort of incorporate keeping hold , maybe a percentage of the deal and things like that as well . So there's loads of different ways that you can do deals with people than just package up and sell them on .
You could look to have a stake in there , that you're sort of the deal source of supplier , so you get 5% , 10% , 15% of the proceeds each and every month . That could be something that you look at .
Or you can just sell it on , get your money and move on to the next one , which , of course , is what a lot of people end up doing when they do this type of strategy . So let's look at why do people actually package up deals in the first place ? Why don't they just keep them for themselves ?
You're saying I would if I could , because everybody starts from a different position . So some people , as I say , they don't have the funds , they don't have the means , they don't have the methods to be able to do these deals . Sometimes they don't even know what they would do with them .
They just know that it's at a good price because they've seen a bargain there . They know the market and everything and they rely on their investors , who have the knowledge , to be able to go in there and transform these properties . Smart people know they should be investing in property .
You know , even if it's as a hobby , you should be , if you've got money , putting it in a tangible asset that can give you cash flow , rather than just leaving it in the bank . Of course , this is a great way to replace your income and create generational wealth .
Wealthy people with well-paid jobs are often too busy to be going out there and finding deals for themselves . So you need to find these people , see what they want and then go out there and serve their purpose .
If you're looking at doing this full time , don't just go on the right move , zubler , property Filter , whatever it is , find a great deal and then try and shoehorn that deal into some sort of investor . Do a little bit of homework first . If you want to have a successful business , you need to make sure that you're serving your client's needs .
So you need to make sure that you're out there and you know exactly the criteria that they want , what they're looking for , their ROI , what they're happy to spend , and go and find those deals for them . Why ? Because it'll save you so much time and money yourself in wasted opportunities when you're just trying to find a deal and give it to anybody .
Be bespoken and actually go out there and find the deals for the right people at the right price . And you know for a fact that if they're serious , they're going to go through it . They're going to actually be worth money to you , because whilst this sounds great and easy , there's a lot of things that can go wrong with it .
One in three , probably a bit more . Two in three
¶ Profitable Property Deal Strategies
. At the moment , property deals are falling through and you shouldn't be getting paid completely until it's gone through if somebody's purchasing the property . Obviously , rent-to-rents are quite good because you can do those quicker , but then you need to know what a good rent-to-rent deal is .
So it's very , very important that you make these good deals , that you're serving a client who will buy those deals and will not mess you about , because it will save you , as I say , a lot of heartache , a lot of stress and a lot of wasted time .
So people that don't have the time or are maybe out there doing things that don't don't see all the opportunities that you do because you're on it , will be grateful and will really , really want to work with you on these . So what types of deals will people be looking at buying ?
Well , it depends on the property they want , because this can include , you know , below market value BMV properties . This is where it's set at a price but you can get it at a discounted rate . Some people love that and really look for those sorts of deals , and it's always going to be a market with that . Why ?
Because people will get instant equity in the property if it's below the market value . Some people are really looking for the high cash flowing strategies .
High cash flowing properties like HMO houses of multiple occupation where the individual bedrooms are rented out to separate tenants , and , of course , the other caveat to that is a lot of people like serviced accommodation , short term rental , holiday lets . That can be another great cash flowing strategy .
Some of your investors or your potential clients could want large profits from developments , so they're looking for pieces of land . They're looking for properties that potentially they can turn into something mega and of course , those are the profits that they want .
And a lot of people will be looking for low money down strategies such as rent to rent deals or purchase lease option deals . Now , rent to rent deal is where you take on the property . You give the landlord a guaranteed rent , you treat the property as if it's your own and , of course , over time , you make great cash flow .
The owner of the property makes money themselves as well , and we maintain it to a high standard . A purchase lease option is very much the same , but you've agreed and arranged to buy the property for a set price in the future .
That could be a year , that could be three years , five years , but it's very much like a rent-to-rent but you take a bit more of the responsibility of the property on Now . Both of those strategies are amazing because you can really sell deals quickly .
They haven't got to go through massive solicitors , conveyancing , all of those getting mortgages and finance sorted and everything . With a rent-to-rent deal predominantly , you can do it in a matter of a week , couple of weeks , get it over the line and then you're getting paid for it as well .
The investors are happy because they're making instant cash flow , so you can charge fees for finding those deals . So how much money should you be making if you're looking at packaging up and selling deals ? And , as I said before , you have to make sure , if you're charging fees , that you are compliant .
You've got the right insurances , client accounts , money , anti-money laundering , you've got all sorts of things and check sheets to go into there . I'm not going to go into it in this one . I've already gone through that in a separate video , but I'll also do another video to help you with that in the future .
But of course , what you can charge largely depends on the deal itself , because typically fees can range between $3,000 to $5,000 per deal , or potentially 2% of the value of the property . So there's different ranges for different deals . What most people do is they go in very cheap .
So you hear a lot of people saying two and a half grand , three grand , so as an investor you can get some really really good deals there . But then do these people really know what they're doing ? A minimum fee should be about 2000 pounds for all the work and effort that you're putting into these . But you've got to make sure that they are good deals .
As I say , if it's a development or you're finding plots of land for people and things like that , then if you get a fee or a percentage should I say would be better than a fee . So like 2% or more would be an actually a great , great fee to have . If it was a 1.5 million pound property or piece of land on those things .
Million pound property or piece of land on those things A one deal a month could completely change your life and could really really help you in getting out there replacing that day job .
But the one thing that has always disturbed me a little bit with deal sourcing is , unless you've got a pipeline full of investors , full of great deals because some will fall over You're not always sure the cash flow that you're going to be getting .
So it's about building up that pipeline , it's about building up that book of investors so that you know that you've got a few deals going on at once , and of course , it can get very , very busy as well . You may need to have virtual assistants and things to help you with the back end of stuff if you're out there getting the deals .
Two deals a month could , of course , make you 100k a year per annum . If that's the case , one deal a month of the right deals could make you 50k a month . So you can soon see how this can work out and be very , very profitable . Now you will have expenses in that , as I say , because you will be a compliant deal sourcer .
So do make sure that you're all set up and you're ready for that . But there are some marvelous platforms out there at the moment as well that can help you with this . There's one that springs to mind called SiteFinder , where you can bring deals to SiteFinder .
They have a plateau of investors at the back and if it's a good deal , sitefinder will help you find the investor for that deal . They take a small fee on that but at the end of the day , you haven't got to go out there and keep finding investors . You've just got to find really good deals that you can put onto that platform .
How else can you find buyers ? Well , networking events are always great . Training events are always good as well . People that you know I always like to say the low hanging fruit could be friends , family , work colleagues , anybody like that who could be looking for properties could be looking for deals . You just don't know until you get out there .
But make sure that of course you are finding those people , those investors , but you're also looking for those deals as well . It sort of goes like for like people say to me , do I find a deal first or do I find the investor ? I say just always , continually market out and look for both . But get yourself out there and start to build up that credibility .
Start to build up that know , like and trust . Start to get out there , start to view properties , start to talk to agents , get to know the agents as well . Try and get in their little black books , but also talking to vendors and remember one thing which we always say here is try and find what sort of problem they have .
If they have a problem , they're trying to sell it . It's stuck on the market , it's not shifting . You will get your best deals from that sort of thing .
So I hope this episode's helped you and giving you a bit of food for thought that , even if you don't want to be a deal sourcer 24-7 , that some of the potential leads that you may be finding because you're out there finding deals for yourself , you could package up , you could look to sell
¶ Property Compliance and Deal Opportunities
on . As I say , you don't necessarily have to have all the compliances . There are compliance vaults that you can join and you can piggyback off of their compliances and it's just like an annual fee to be a part of that . And , of course , if you are finding more deals than you need and you do think to yourself do you know what ?
I could be making some good money from these , then of course , jump onto those . If you need any help with your property investing , click on the links below and , of course , come and join us in the next episode very soon .
If you've liked this , then give it a thumbs up , give it a like , Give it a share , give it a follow , and I look forward to you joining me in the next episode . Thank you very much and bye for now .
