I made a short 30-second video explaining exactly how I became a millionaire by the age of 25. Here is what I said:
“You know how I became a millionaire from property? Not from buying properties myself. That didn’t make me a millionaire; I didn’t buy houses and rent them out. What I did was I found property investments, I negotiated to buy them really cheap and then I passed them on to other investors and charged a finder’s fee.
On average, you’re gonna get about three thousand pounds per deal. I did that over 200 times in the space of two years and then used that money to invest in property myself. That’s how I became a millionaire!”
In this article, I am going to talk about the three things you need to do to start packaging and selling deals yourself.
1. Become Compliant
The first thing you will need to do is become compliant. Myself and my expert associates wrote a book explaining exactly how to do that. It is called A Guide to Making Property Compliance Easy and you can buy a copy on Amazon. There are a number of things you will need to do from registering with the Information Commissioner’s Office to registering under Anti Money Laundering regulations. This can take some time and requires a small amount of money to do as well. However, if you are going into deal sourcing alone you will need to get your head around all this and get everything registered properly.
If you are not ready to do all this, there is a solution. The solution is called co-deal sourcing. Co-deal sourcing is where you find a deal and then pass it on to a deal sourcer who is already compliant for them to sell to their investors. As you will not be dealing with the investors yourself, you don’t need to go through the same compliance steps as a deal sourcer. This is a great way to get started in the deal sourcing business. If you decide to go this route, you can skip step 2 for now. However once you have done a few deals as a co-deal sourcer, you may want to come back to this and start out on your own. Bookmark this page so you can come back to it.
2. Find Investors
The next step is to find investors. Attend property events and speak to investors, build meaningful connections and don’t try and sell them on what you are doing immediately. Ask them about what they are currently investing in and find out what they are looking for. Once you have found out what they are looking for, try to establish an agreement for you to look for the type of deal they are after. Take a small refundable deposit upfront to ensure they are serious about working with you. You will then have a set amount of time to present them with deals that meet the set criteria that they lay out. If you can’t find deals that meet this criteria, you refund the deposit. If you find a deal and they take it, the deposit is deducted from the finder’s fee. If they reject a deal that meets the criteria, you can show them more deals but have a fixed point where you will not show any further deals and the deposit will be forfeit. The exact terms of such an agreement can certainly vary and you should ensure it is all in writing so both parties are clear on the terms.
If you can’t make these type of bespoke deals, certainly get an understanding of what is generally wanted by investors and build an email list.
3. Find Deals
The next step is to find the deals that the investors want. This could be BRRR, turn-key ready HMOs, Rent2Rents or anything else an investor is looking for. You will need a broad understanding of all these types of deals and to know how to speak to estate agents. You will also need to be able to calculate good estimates of costs and know if something is likely to be a good deal or not. This will come via a mix of experience and good training.
If you want to stand head-and-shoulders above most other beginners out there, a good place to start is the Property Investors Crash Course. The course is free and you will learn while doing. Even if you decide not to go on to purchase any advanced training from us, the crash course will give you a good grounding in the basics and teach you things that even many experienced investors have missed. You can book a free ticket here.