Last month I shared how educated investors can sit in the flow of
money in the middle of Option transactions. In this article I will
explain how we can generate a significant income by positioning
ourselves in the flow of both information and money generated by
Deal Packaging for other investors.

How do we position ourselves in the flow of money?

The flow of money with Deal Packaging is
in the middle of a transaction between a
seller and a buyer.

Currently your marketing may consist of
leafleting, newspaper adverts, shop cards,
buying leads from web based lead sellers,
practising with free leads from
RapidPropertyInvestment.com, or running
your own adwords campaign, in all cases,
you will come across Distressed and
Motivated sellers.

A Distressed Seller will need a lot of
support and help. They may need friendship
and repossession guidance, they might not
actually need or want to sell their house and
may only be forced into doing this because
they see no other way out.

You may find negotiation with Distressed
Sellers emotionally draining and will often
feel a conflict between your desire to help
and your commercial realities of needing to
pay significantly Below Market Value.

Many of these sellers will be suited to Sale
and Rent Back and if you have made a
decision that the impending regulation is
not for you, you may be able to generate
thousands in commission income by
referring such sellers to a reputable,
regulated Sale and Rent Back firm.

A Motivated Seller is different, they will be
much more in control of their situation and
may be selling to relocate, upsize, release
capital before a deadline etc. With these type
of clients you can feel guilt free when you
are negotiating. You can request as deep a
discount, or offer as low as you like. It is no
different from offering a price that suits you
at the market or boot sale, or haggling over
the price of a car, if they don’t want to accept
it, they won’t.

There are thousands of Motivated Sellers
at the moment, who have been unable to
secure a sale through traditional methods.

For these vendors, their house has become
a ball and chain, a burden, no longer the
house of their dreams but the cause of their
nightmares.

In these cases it is just a matter of reminding
the seller that we are in the middle of the
Credit Crunch, that there are very few
buyers around, that lots of people need to
sell their houses at the moment and that
only the cheapest and most heavily
discounted property will actually
achieve a sale.

Bearing all this in mind, how low will they go?
Let the Motivated Seller tell you their
bottom line, their lowest price and use that
as the start of the negotiations.

Once you have a price agreed you can
explain that one of your associates will be
buying the property and you can get your
deal secured on an Option or Exclusivity
agreement.

When I first started packaging deals in
2007 everything was done on a 1% or 2%
Finder’s Fee based on Purchase Price. This
was okay and meant that we could generate
£1k-£2k per deal but it didn’t really reward
additional negotiation results. In fact the
lower Purchase Price/ Bigger Discount the
less Finder’s Fee was payable! With modern
financing, we can sit in the middle of each
transaction and keep the difference between
our agreed Purchase Price and our buyer’s
agreed Purchase Price. It is much more like
flipping a property.

A typical example to a BMV buyer would be
a property in Cheshire that we had agreed
to buy at £107,500, we sold it to an
investor buyer with 25% deposit paid at
£117,500 with a RICS value of £157,500.
In this example you can see that our end
buyer got a property at just under 75% so a
good deal for them and we made 10k profit
from sitting in the middle. If we factor VAT
into this transaction, there is £8500 profit in the deal.

A typical example to a First Time buyer is
a flat in Essex that we had agreed to buy at 90k, we sold it to a
residential buyer with 15% deposit paid at
97,500 with a RICS value of 115k.

In this example you can see that our end
buyer got a property at just under 85% so
a good deal for them and we made £7,500
profit from sitting in the middle. If we factor
VAT into this transaction, there is £6k +
profit in the deal.

If you would like to learn how to
package these kind of deals in a LIVE
environment please visit
www.RapidPropertyEducation.com

To keep informed of any deals we
have for investors and to have access
to free leads, please register at
www.RapidPropertyInvestment.com
Please ask questions and discuss this article
with me and my property friends at
Parmdeep’s forum www.Tycoons-Forum.com
In total support,
Phil (I’ve got a friend) Martin

This article is taken from the fantastic ‘Your Property Network’ magazine - the fastest growing property magazine in the UK. To get your FREE 90 day trial of Your Property Network, click here.