How To Package Up Property Deals - podcast episode cover

How To Package Up Property Deals

Nov 07, 202417 minEp. 290
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Unlock the secrets to transforming overlooked property opportunities into profitable ventures with Mark Fitzgerald. 

Ever wondered how to leverage property deals that don't align with your strategy? This episode promises to equip you with the knowledge to identify and secure these hidden gems, turning them into lucrative chances for fellow investors. By mastering strategies like purchase lease options and rent-to-rents, and ensuring thorough due diligence, you'll learn how to keep these deals from slipping into the open market. Discover how becoming a compliant deal sourcer, complete with essential compliance and anti-money laundering measures, can potentially lead to a fruitful business, bolstered by platforms like SiteFinder.

Dive deep into the myriad strategies of successful property deal sourcing, focusing on high cash flow avenues including HMOs and serviced accommodations. This episode sheds light on the importance of securing below-market-value properties and the benefits of maintaining a robust pipeline of investors to ensure a steady income stream. Compliance is key, and we emphasize how joining compliance vaults can streamline your efforts, allowing you to focus on the most profitable deals. Whether you're just passing surplus deals to investor friends or contemplating a full-time business, this episode offers the insights needed to elevate your property game, ensuring growth and financial success.

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Transcript

Maximizing Property Deal Opportunities

Speaker 1

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 .

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