Property Deal Structuring Advice Required

[Ketan Angris]

I’m looking for some advice specifically from Property Lawyers/Experts/Investors to understand how I can structure/package potential deals.

Could anyone with correct skillset drop me a message

Thanks

 

[totallyproperty]

I’m looking for some advice specifically from Property Lawyers/Experts/Investors to understand how I can structure/package potential deals.

Could anyone with correct skillset drop me a message

Thanks

Hi Ketan,

welcome to the forum

Are you looking to present a deal to potential investors (in a brochure),or are you talking about structuring an investment agreement? If the latter, are you looking to Joint Venture or for 100% investor funding?

 

[Ketan Angris]

Hi Thanks for your reply!

I will be hoping to present these as investments.

I can negotiate with seller at X and property can be sold at Y. Buyers would be happy to pay higher due to the investment potential of the property. Seller will be happy to sell for the price as well.

Can I structure it to be a middle man and make the difference in profit or will this have to be packaged as an investment in return for a finders fee etc?

 

[nmb]

There is potentially more profit to be made by acting as the middle man but a lot more risk. The finders fee is more straight forward and you will get paid a set fee (or percentage) so it is really down to your risk profile.

Remember, you would probably need to physically buy the property before flipping it - have you thought about the extra costs this would incur? If the sale doesn't go through for some reason then you are left with a property and potentially fully invested.

 

[Nicholas Wallwork]

Hi Ketan,

You can charge a finders fee to the buyer and just sell on the property at the same price... they'll see your value based on the fact it's off market and also a great price - you've clearly added value!

You could also act for the seller and take a fee from them. So if they agreed to sell for a slightly higher price to include your fee and then pay you once the sale completes, that's the normal way agents get paid in the U.K. And all estate agents get paid by the seller...

The deal should be secured with an agency agreement from the seller or a buyer's agent / finders fee / NDA with the buyer. The later is harder to enforce if they choose not to pay but be aware that no contract is perfect if you're dealing with dis honest people so just be sure you know who you're dealing with as well.

Hope this helps


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[nmb]

In a perfect world you would only deal with people with a sound reputation but all of us will have been burned at some time. The key is to ensure you are protected at all times (take legal advice) and use escrow and other such systems for security.