Property Sourcing Ready Made Deal Information

I was paid £6,000 to purchase a property!

Ready Made: Adj. Made so as to be ready for use or sale at once. n. Something that is ready made

Perfect for the Armchair Investor, READY MADE DEALS offer the complete package. Using the definition, the item that is ready-made is the deal itself. All aspects to complete the purchase are already in place. It really can be considered a case of sign on the dotted line and provide the money.

READY MADE DEAL providers save you time and create instant equity

What has been done before the deal is offered to Investors?

Deal sourced. The vendor has been found.
Deal negotiated. The price has been agreed with vendor
Paperwork has been completed to lock the vendor into the deal within a given timescale, probably via a lease option.
A rent back agreement including rental level may also have been arranged.
Financial breakdown and cash flow forecast prepared including a mortgage payment approximation based on a valid possible mortgage example, rental achievable, and purchase costs.
Due diligence completed including comparable market values for sale and rental values.
Property condition reports including internal and external photographs and background information regarding the sale and vendor.
Power Team in place. The mortgage Broker, Solicitor and Bridging finance Company if applicable, already have knowledge of the deal and are just waiting for your telephone call.
Tenant sourcing & management. Most will also offer to handle this aspect if applicable, although this is optional.

This option really is a One Stop Shop! You need never even visit the property or meet the tenant if you don’t want to.

Obviously, you cant expect all that deal negotiation and paperwork to be for free so you have to accept that there is a cost implication, with charges ranging from £1k to £5k+ depending on the individual Company or deal. In addition to this fee, you still have to pay all other fees associated with the purchase, so making your overall costs higher. Generally, this means that even with the property price being say, 25% BMV, there will be money left in the deal. That money inevitably being the costs of the package itself.

Is a READY MADE DEAL for you?

If you are time poor.
If you are not interested in the nitty gritty and workings of deals.
If you don’t want to bother with adverts in the paper.
If you don’t want to be a negotiator and possibly have to listen to sob stories.
If you don’t want to source tenants.
If you do want the entire sales progression managed on your behalf.
If you do want a turn-key property purchase system.

Sample READY MADE DEALS

The first time a property is offered, there will usually be some sketchy details and you will have to contact the provider for further information

Example 1

10 The Avenue
Cash Flow + £150 pcm
Property Details:
Two bed mid terrace
Vacant

Investment Details
Target rent: £350 per month
Estimated Value: £60,000
Purchase Price: £42,000
Mortgage borrowing: £45,000 (Based on a minimum value of £60k)
Gross Cash Back: £3000
Deposit: £2,000
Equity on completion: £15000
Finder Fee: £600
Cash In Deal £1000 After All Costs Aprox

Example 2

1 Any Street
Typical 3 bed room Semi detached property in Another Town. £30,000 Equity. Full Deposit Paid. Vacant. Inherited property.

Investment details
Target rent: £650 per month
Estimated Value: £120,000
Purchase Price: £90,000
Mortgage borrowing:£90,000
(Based on a minimum value of £120,000)
Mortgage payment: £408.65
Reservation deposit: £1,000
Valuation Cost:£355
Meet the Surveyor: £285
Equity on completion: £30,000

Experts ALWAYS recommend that you do your own DUE DILIGENCE in assessing the market values and rental yields.

You may also want to see
Ready Made Deals Directory Listing Page