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This is my first day at property tribes and my first post!
I love property and my ideal holiday is two weeks of hard slog in a house that needs care and attention.
I have a couple of properties and have been a landlord for about 5 years now. I am seriously thinking of selling one of them to buy at auction and flip.
However, I could do with a second income stream at the same time, and wonder how I would (if its possible) receive a finders fee for finding a good proposition. I have no interest in taking on the responsibility of rent to rent, or managing tenants. I simply look for and find good deals all the time, I just don't have enough money to see them all through!
Any ideas or pointers gratefully received.
Hi Liz and welcome to the tribe. It is possible to sell on deals to other investors, but it is a regulated activity so there are compliance aspects you need to be aware of to trade legitimately.
This thread has the information in that regards:FREE deal sourcing course You will need to join an independent redress scheme and Property Tribes is partnered with the Property Redress Scheme, who have the ideal option for you.If you look in our Entrepreneurs category, there are lots of discussions about creating additional property-related income streams.Re: your comment about selling a property, I always advise against that.It is like having a tree that you cut down to buy another tree. Whereas, if you take a clipping (equity) from the tree, you can grow another tree while keeping the existing tree and avoid the significant costs involved in cutting down the tree (aka selling costs of a property).Buying at auction and attempting to sell on is a high risk strategy at the best of times imho, but even more so in a stagnating and uncertain market as we now currently have. Margins are slim, and with the 3% stamp duty and the Brexit blues to contend with, you'd have to have a very high risk threshold to attempt this imho.I hope those links and insights help for starters and good luck!
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
I do what you want to do on a bespoke basis with individuals
So you have to get out there and find some clients .
so look the part - set a company up, get a biz card , get legal ,advertise your service , network like crazy , prove your worth
I also manage the property I find afterwards and project manage the refurbs if needed
It makes it streamline one stop shop
But if you dont want to to this bit tie in with people who can - so you offer a complete service
Also tie in with brokers and solicitors and accountants and trades
Always know someone who does
Know your prices, your trends , your area
If potential clients ask a question you will always have an answer
or find out that answer for them within the hour and get back to them
Keep that answer succinct . Dont waffle
High Net Worth investors who pay for a finders service want solutions not problems
Busy people want you to be busy for them .... But never sell your soul
Work with nice people only . Be mutually respectful
Jonathan Clarke. http://www.buytoletmk.com
Thanks Vanessa for taking the time to reply.
I understand your perspective, although I have tried 3 times to release more equity, without success. I have owned the property for 12 years, mainly as a resi, and then as a B2L, (with the correct mortgage) Selling this year would refund my second stamp of 7.5K - The fixed rate mortgage is due to end, which will leave me with an expensive 5.25% unless I remortgage. Although I am looking for passive income, I enjoy the renovation and lean towards it.
I guess the big question is if you had 150K of equity, what would you do with it? Buy one large house netting £500 - £800 a month (interest depending), or buy 3 smaller properties, or buy outright, renovate and resell.
My goal is to own one outright to live in (although I live in an area where a 1bed is 150K+, and a couple of others to give me a passive income of around £2000 a month.
My tenant has left early but is tied to a contract, so I am planning to sell for a price I am happy with, whilst the costs are being covered, and if I don't achieve the price, I can re mortgage, re let or move in myself for six months, and try again.
All and any opinions welcome.
There is an article here about different ways to invest in property to create multiple income streams.
Did you make a final decision on whether or not you will be selling your BTL?
Also, have you considered the sourcing route or any other biz idea to bring in another stream of income?
Traditional / Sophisticated / Developer
Hi - yes I did make a decision and had decided to remortgage withdrawing enough to purchase something else however - which will give me a total of 5 properties and a good place to stop and breath for a couple of years
- the house two doors down has just gone on the market for an extra 70k with the agents I trust most - so am currently waiting to see one of the directors to see what’s what before I make my final decision (for the third time) as that could give me enough to be a cash purchaser.
Good to hear going well