#02 - Earn Money Selling Deals That You Don't Want to Buy For Yourself!

In this episode, David Siegler shares why Deal Packaging is one of the fastest, most lucrative and hands-free property strategies around today, regardless of your credit rating and funds. KEY TAKEAWAYS  If you are going to Package Deals, make sure you do the job properly and professionally, serving your investor. That way you will get repeat business and recommendations from them, allowing you to build up your portfolio.   Deal packaging is one of the fastest ways of generating cashflow in England. This strategy is fast and virtually free! You find the property, satisfy the investors' requests, then you take your payment and leave. If you are stressing that you don’t have the funds, don’t worry, Deal Packaging is the strategy for you. You don’t need deposits, the investors do. You don’t do mortgages, application forms or any credit checks. Deal packaging could replace your daily and ordinary job, or just bring in income that you can save and leave in the bank until is enough to put deposits down, in order to build your own portfolio. Deal packaging gives you the opportunity to earn money from property even if you are not buying properties yourself. Buy as many properties as you can and don’t just view them. Buy them and make sure they are right for your investor.  Building your credibility with the estate agents is a very simple thing to do. Explain to them what you are doing, that you are working with investors to build your portfolio and you would like to work long-term with them as well. Prove you will buy one house per month from them, show them you have investors and you are looking to build a long term business relationship and they will offer you special treatment, putting you at the top of their investor list. Are you a Deal Sourcer? Personally, I don’t identify myself as that these days, I think it has a bit of a negative connotation these days. Deal Sourcers are recognised as people that don’t really provide you with deals. All the properties they sell are identified coincidentally as BMV (Below Market Value) but in reality they are not. They might not be in areas in which you would want to rent a property. You will find repairs to do, have long void periods, all which will bring the cost of the house higher than you will expect. Consider the area where you buy! A socially challenging area will compromise the value of the property. BMV (Below Market value) We all want a discount on the market = BM. V=Value. If a house is below market value and sells at a price below market value, next time the landlord registers that street, the figures update and it says the new market value. You could have two identical houses on a street, only one has a shabby interior. One may sell for £70k, the other may sell for £50k. The one for £5k may need £20k worth of work on it, so the actual market value for that street would be £70k. Deal Sourcers often don’t view the properties they buy for their investors. How can you value a house when you don’t go and view it? They rely on the vendor’s opinion on how the house looks of if it needs any repairs, etc. which I don’t personally believe is serving your investor. I always visit my properties before I buy them. BEST MOMENTS Another reason why I love deal packaging is because there are no tenants to deal with. It’s all the investors responsibility to deal with them. You source the property, help the investor tenant the property, take the money and move on to the next one. These days, referral/recommendations are the most effective way to get new business leads. Never depend on the vendors’ opinion regarding properties, or even the estate agents. You have to go and look at your property for yourself. Just to make it absolutely clear, I can see a distinction between deal sourcing and deal packaging. Deal packaging is more of a rounded service. VALUABLE RESOURCES Progressive Property Deal Packaging Course Commercial Conversion Course ABOUT THE HOST David is a property expert with over 25 years experience and his own portfolio of 26 units. His current rent roll is in excess of £10k per month. He is also a partner in a Deal Sourcing and Packaging business in the North West of England and has sourced over 250 properties for investors since 2004. He's very active in this business at this time. In recent years he has, by necessity, had to develop an expertise in LHA strategies. This area is increasingly becoming a niche for him and he enjoys empowering other landlords by sharing the knowledge he has gained. The ultimate purpose when sourcing properties in this sector for investors is to minimise risk while maximising profit. He has had to find answers to the challenges of Tenant Find, Management, ensuring rents are paid and the transition to Universal Credit. These are strategies he uses in his own business and also on behalf of investors. His investor clients regularly achieve annual gross yields of over 20% with high occupancy rates and voids resolved, sometimes within hours. CONTACTS David’s LinkedIn David’s Facebook