Property Deal Packaging

by Readers Question

9:39 AM, 8th June 2014
About 4 years ago

Property Deal Packaging

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Property Deal Packaging

I’m currently purchasing single let properties in Scotland at a rate at which my available finances allows. Approximately 2 per month. Property Deal Packaging

I have a large network of investor contacts and am viewing many properties which I am either unable to buy (due to finances) or they simply don’t fit MY specific criteria (on inspection). I also have a lot of opportunities highlighted to me by my network of solicitors, surveyors and estate agents.

At the moment, I am just having to walk away from these opportunities and I’m interested to learn more about how they could be packaged and passed on to my network for consideration – with a small finder’s fee applicable if they decide to purchase.

Is anyone able to explain the process of how this is done?

Grateful for everyone’s time and feedback.

Many thanks,

Andrew



Comments

Mark Alexander

9:44 AM, 8th June 2014
About 4 years ago

Dear Andrew

The first thing that you need to understand is that such an activity is regulated under the Estate Agency Act 1979 - see >>> http://www.legislation.gov.uk/ukpga/1979/38

You would need to purchase a licence but to do that you would first need to obtain Ombudsman approval. To obtain that you will require Professional Indemnity insurance.
.

14:08 PM, 9th June 2014
About 4 years ago

Hi Andrew,

Mark has given some good first pointers.

Not only do you need to be a member of a Property Ombudsman Scheme, but you will also need to have PI insurance.

We have a useful thread on Property Tribes which gives more insights into becoming a deal packager/sourcer:

http://www.propertytribes.com/property-sourcing-t-5926.html

There is also the issue to consider of how the investor can go behind your back to the property and buy it without paying a fee. Yes, this does happen!!

You have to be very careful about securing your position as the introducer.

I would recommend a small "commitment" fee upfront to be paid to prove they are serious - say £500 - and then have the bulk of your fee paid as a disbursement by the solicitor on completion of the purchase.

You will need all the necessary agreements and paperwork for this.

Andrew H

9:17 AM, 10th June 2014
About 4 years ago

Many thanks to both of you.

All the best.

9:47 AM, 10th June 2014
About 4 years ago

Do you think you will go ahead with deal sourcing?

I think there is a niche for someone who works at a very bespoke level ... almost waiting to understand the needs of the investor before sourcing the deal specifically for them. A bit like "Kirsty and Phil" but for investors.

Best of luck whatever you decide. 🙂

Andrew H

9:57 AM, 10th June 2014
About 4 years ago

Reply to the comment left by "Vanessa Warwick" at "10/06/2014 - 09:47":

Hi Vanessa,

More homework to be done first but it is something that interests me as part of building a more holistic property business around my core BTL activity.

Happy to keep the community updated should I decide to progress.

Kindest regards,

Andrew

Mark Alexander

10:43 AM, 10th June 2014
About 4 years ago

Reply to the comment left by "Andrew H" at "10/06/2014 - 09:57":

Hi Andrew

If you do decide to progress this as a business you will undoubtedly need some help to promote it. When the time is right for you please see >>> http://www.property118.com/advertising/65073/
.

Andrew H

11:10 AM, 10th June 2014
About 4 years ago

Reply to the comment left by "Mark Alexander" at "10/06/2014 - 10:43":

Many thanks Mark - greatly appreciated.

neils26

13:59 PM, 22nd November 2016
About 2 years ago

>>You would need to purchase a licence but to do that you would first need to obtain Ombudsman approval. To obtain that you will require Professional Indemnity insurance

I understand the PI Insurance and Property Ombudsman Membership... but I can find no mention of purchase a 'licence' on top of Ombudsman membership ? Is there something else ?

Mark Alexander

14:10 PM, 22nd November 2016
About 2 years ago

Reply to the comment left by "neils26 " at "22/11/2016 - 13:59":

Nope, I think you've got it covered there.
.


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