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Hi,

I am looking to start sourcing properties for first time buyers or investors. I have seen people charge a finders fee but also included the fee in the purchase price. I was wondering how to implement the following example:

RICS: 100K
PP (via purchase option agreement) : 80K
Sold to FT buyer or Investor: 90k

Could any experienced investor explain to me how the ‘flipping of properties’ works when using purchase option agreements.

Many Thanks,

 

 

With the wealth of knowledge on this forum im suprised I have had no responses or is the forum very quiet at the momment (excluding the land and planning section!!)

 

 

 

With the wealth of knowledge on this forum im suprised I have had no responses or is the forum very quiet at the momment (excluding the land and planning section!!)

 

 

 

Hi

I am also surprised that nobody has replied
just to clarify - if you are starting to source property - we are looking for property sourcer in and around Carif
but here is what I would expect
at least 25% of RICS
I prefer to pay the sourcing fee after the deal has been sealed with the seller and RICs came as expected to justify the required discount
it would be difficult to give you fee in advance as the val might come in less and the deal might not work so we deal based on trust this is why we have our own sourcer who is part of the team and we trust each other or a reputable company in this case
If Rics came at 100k
what sort of investor would by at £90? calculate the BMV and you will see what I mean...

Leanne

Hi Lemon,

In the current climate there are ample properties that you can pick up at 10%-15% and even 20% BMV even if if you are a first time buyer, its having the knowledge or help.

I would suggest that you look at the FTB situation and offer them something differant that is not on the market.

Look at the Interest Rates for 90% Mortgages not too great. Look at 85% or even 80% (Cash Back, Gifted Depost) still available

Look at the associated Fees to high. (Cash Back or assistance)

Look at speed of completion. (Recommend, Advisor, Solicitor, Developer ect)

Put your self in there shoes, I hope this is food for thought.

Robbie

Look at the whole package and offer them  a Unique Selling Point.

Leanne,

Carif? Did you mean Cardiff, as in Wales?

John Corey