Let me ask you a question:
What would happen to your family if you couldn’t work for a while? Whether it was because of ill health or you lost your job, what would you do? How would you pay the bills?
Did you know the average household could survive for less than eight weeks if the primary breadwinner was out of action. Less than two months!
That means if you had a car accident on your way to work tomorrow, inside of three months there is every chance you and your family would be homeless.
Here’s another crazy statistic: The average adult will be made redundant at least twice throughout their working life.
So even if you are one of the best-prepared people out there, you may have the savings to cover one bout of unemployment, could you handle two? Statistically no.
It would bankrupt you.
You’ve probably known for a while you should get another income to give the security you need, I mean the world has changed hasn’t it? Job security just doesn’t exist anymore. You can’t rely on your job for a guaranteed income or even the pension you were promised. It’s time to take control and build the life and more importantly the lifestyle you and your family deserve.
Investing in property can do that for you.
You might think building an income from property takes years or hundreds of thousands of pounds, you’re wrong.
There are many strategies you can use to replace your income from property in 90 days! Here is just one of the best.
(By the way, even if you love your job, even if you have no intention of quitting, you need to use these strategies to build additional streams of income and create financial security for your family. Making sure that whatever happens to you or your job, your family is taken care of.)
That’s our ultimate responsibility right?!
So let’s crack on with this strategy…
Deal packaging is like all of the best bits of flipping with none of the difficult or expensive parts.
So traditionally, you (the investor), would buy a house that needed a refurb or could add some value, like an extension etc. You would spend a few months and several £1000’s doing the work and then you would try and sell the property on the open market. All the while hoping that the market didn’t crash, or that there would be an end buyer, or that you didn’t run out of money. At the end of months of stress, assuming you got somewhere close to the price you wanted and after you pay all the tax due….
…. you hoped to make some money.
Deal Packaging is completely different in four ways:
- You don’t have to buy the property
- You don’t have to do the refurb
- You don’t have to hope for a buyer
- You don’t have to take any of the risk!
This is how it works step by step.
Step 1) As the educated investor, your first job is to go out and find homeowners that are looking to sell their properties. These can be on the open market or off market.
To find these sellers ‘off market’ (which is always preferable for reasons I won’t go into now). You might use: direct mail, leaflets, word of mouth, referral schemes, or, PPC adverts like Google AdWords and Facebook.
Most effective right out of the gate is targeted direct mail, with handwritten envelopes and red writing on yellow paper (there are loads of reasons for this that I don’t have time to go into here).
Step 2) Ok so the seller has come to you. Now what? Once you have established the condition of the property and the market value you then negotiate a purchase framework, that solves the property owners problems.
Notice I didn’t say purchase price but framework.
For most sellers price isn’t their priority.
Speed might be, paying a pressing tax bill might be, but the actual price they will receive for their property isn’t.
So the purchase framework is agreed.
Step 3) Get the property under contract. Depending on the type of purchase you might use one of a number of contracts including: a purchase option or an assignment contract.
Congratulations. You now control the property.
The ‘owner’ cannot sell it, finance it or do anything with it and they are happy because you solved their problem.
Step 4) Sell the contract.
Your new job is to find a buyer for the property at a price higher than your contract price.
Step 5) Cash your cheque.
Your profit is the difference.
Notice you haven’t so much as lifted a paintbrush.
A couple of quick but important points on the purchase framework:
- a) It doesn’t necessarily need to be BMV (below market value) it might even be above market value if the vendor is prepared to finance the sale over a number of years, the property will cash flow well and that is what they need to clear their mortgage.
Your main job as the expert in these conversations with vendors is to find creative win–win scenarios. These won’t often follow some cookie cutter approach but will give the homeowner and you, exactly what you need.
- b) The secret formula to finding out what people really need, when they might not even know themselves…. To be there genuinely trying to help and have a genuine conversation.
Listen more than you talk.