A Primer on Property Deal Packaging As a Business

The craft of obtaining and bundling property investments for investors has been around for a really longtime. Nonetheless, once upon a time, property investors had to do it all themselves. However, the reality is that, not every person has the opportunity or the information to search for property investment opportunities, thus we presently have individuals who source and bundle potential investment opportunities and sell them on to property investors. 

Investors purchase properties in anticipation of a massive return thus they are always on the look out for hot property deals even in unknown territories, including overseas. To help them achieve their goal, investors are always looking for credible property deal packagers who are local to the place they are seeking to invest.

Fundamentally, the job of a property deal packager is to find properties tailored to the needs of a prequalified investor, analyse the deal to see that the numbers stack up and present the deal as a viable investment opportunity to the investor.

Sourcing the Property Deals

The common practice is to source property deals direct to vendor (D2V) and/or from real estate agents.

Direct to vendor deals are normally the best but can be extremely difficult to get especially for a beginner. It becomes relatively easier with time as you build more relationship with property owners.

Most property deal packagers source properties from real estate agents. Real estate can help you get good deals before they are listed on their market. However, you should investors ready to go as they will not wait for you to faff around with the opportunity

Analysing the deals

A critical aspect of property deal packaging is analysing the deal. Basically, what you do here is to crunch the numbers to make sure that the potential investor will have a decent return on investment. It is important to be conservative with the numbers so as to paint a realistic expectation for the investor.

Presenting the deal to the investor

Most beginner property deal packagers make the mistake of sourcing for deals before looking for investors who will fit the deal. It is important to source for investors first, prequalify them (i.e. know their needs and the kind of property deals they are looking for), and make them sign the necessary contracts including agreeing to pay your sourcing fee. Without a pipeline of prequalified investors, you have got no business sourcing for deals

Additional Services

As you gain more experience as a property deal packager, there are additional services you can provide for your investors

• Property Management
• Refurbishment
• Project Management
• Helping your client find brokers or financing
• Cleaning services
• Gardening

You can add to the list. To get a property ready for market requires a lot of work, and your busy investor may not have the time to get the right people to do them. This is where you offer to help the investor at a fee. You just need to outsource credible people or companies who can deliver these services and you are good to go.

Are you hoping to get into property deal packaging business or are you an investor looking for property deals in Leeds, UK? Visit Venus Hill Property Group and get in touch with us.

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