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.
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
9 comments on this article
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Member Since January 2011 - Comments: 12255 - Articles: 1477
9:44 AM, 8th June 2014, About 12 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.
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Comments: 226
2:08 PM, 9th June 2014, About 12 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.
Member Since December 2013 - Comments: 40 - Articles: 1
9:17 AM, 10th June 2014, About 12 years ago
Many thanks to both of you.
All the best.
Comments: 226
9:47 AM, 10th June 2014, About 12 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. 🙂
Member Since December 2013 - Comments: 40 - Articles: 1
9:57 AM, 10th June 2014, About 12 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
Member Since January 2011 - Comments: 12255 - Articles: 1477
10:43 AM, 10th June 2014, About 12 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 >>> https://www.property118.com/advertising/65073/
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Member Since December 2013 - Comments: 40 - Articles: 1
11:10 AM, 10th June 2014, About 12 years ago
Reply to the comment left by “Mark Alexander” at “10/06/2014 – 10:43“:
Many thanks Mark – greatly appreciated.
Member Since October 2015 - Comments: 22
1:59 PM, 22nd November 2016, About 10 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 ?
Member Since January 2011 - Comments: 12255 - Articles: 1477
2:10 PM, 22nd November 2016, About 10 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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