Property Deal Packaging

Property Deal Packaging

9:39 AM, 8th June 2014, About 10 years ago 9

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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


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Comments

Mark Alexander - Founder of Property118

9:44 AM, 8th June 2014, About 10 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 10 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 10 years ago

Many thanks to both of you.

All the best.

9:47 AM, 10th June 2014, About 10 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 10 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 - Founder of Property118

10:43 AM, 10th June 2014, About 10 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 10 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 7 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 - Founder of Property118

14:10 PM, 22nd November 2016, About 7 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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