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Deal making Deal making is a club service similar to finding, but where we are looking to identify or create deals.
The competition for this opportunity is likely to be the self builder, but perhaps we are more able to find the building plot and put together a package, or perhaps the building plot will support several houses and the self builder is principally interested in a single plot. A deal could also be a redevelopment opportunity, property that we can get an option on, and put together a package with quotes etc to be able to demonstrate it can be profitably completed and suitable for the rental market.We have three types of deal making service:
Pre-commissioned (member service D1) In this case you ask for a specific deal to be found, within specified parameters, very similar to the service provided for franchises. You provide a maximum figure for the project including land, and build, as well as any other limitations such as area, size, return etc that you feel essential. A selected provider on behalf of the club finds or creates this opportunity, and presents it to you as a documented package, options, quotes etc already available to you. As it is pre-commissioned, this is the deal that will be searched for and created as a priority, should this prove difficult to fulfill you have the opportunity to change the specification, increase the budget, or wait longer until such an opportunity comes up. It may be that several opportunities can be presented in a single task, for example they may find a plot that will support 4 houses, and perhaps meet with this the needs of 2 pre-commissioned deals and 2 franchises. The service is proactive, it is not opportunities that come along or are found through agents, but created by people searching out opportunities, obtaining options or in some cases franchise companies purchasing the land so as to be able to use a plot and offer others further plots. They have many tricks of the trade available to them to find opportunities that perhaps others have just been walking by, plus the scale of the operation means that they can actively search areas, using advertisements and other means to get leads. Like the finding service this works on a registration plus percentage of maximum budget, this costs 3% of the maximum budget, which is paid when the specification is agreed. And like the finding service if you turn down a deal that meets the specification you have to pay 50% more for each new deal to be created and put to you. The deal you turn down is then passed on to the speculative deal making service. Where they have had to pay for the option on land, the cost of this option will be within the budget, and will of course have to be paid as well as the 3% based fee. The pre commissioned deal and developments services can be combined within a single specification at no extra cost. Speculative (member service D2) Speculative opportunities are often found while searching out another opportunity for a member or a franchise company. They come across an opportunity that is outside any existing specified requirement. Sometimes if it is very near to an existing specification they will be asked if it interests them but on other occasions it will be developed as a speculative opportunity. It will then be offered to those who have registered an interest in being offered speculative opportunities that match a similar profile. The start point, if this might interest you, is to produce a specification as to the range of opportunities that you ideally want and a wide range of opportunities that you would perhaps like to consider. You register onto this service Opportunities are told to only a few people at a time, but the number may get larger as time progresses, however it is a fixed price deal, not an auction, the first to commit gets the opportunity. It may be some time before a project comes up that meets your needs, and should you decide to convert to the D1 service then 50% of the registration fees paid is credited towards the registration fee for the D1 service. When we find you a project that you like then the cost is 5% of the budget for the project, plus any costs already incurred such as land options, building permission costs, land or similar studies, and any early work commissioned as in the case of roads and services being put in etc. In some cases this will be the remaining plot left over from a commissioned project, and in some cases several houses will have been built and the site of the last one used for site huts, stores etc until they have been completed. For this reason the roads, services and more may already have been provided. There is no fee if you turn down a project, but should you agree to it and then back out the fee is still payable. People registered onto this will also get the opportunity to see the member generated development opportunities below, and charged then at the rates for that service instead of this one. Member generated (Club service D3) Like the speculative ones created or managed through the club this is where other members have created a similar opportunity. In some cases it will have been done so as to help finance their own project, for example a person may purchase a site with two plots and put in roads and services for each, get detailed planning permission for both so as to control what type of property is next to them. Often this is two identical units so design costs are saved and quotations are the same for each, but the second fully researched and working project is sold at a premium to help in his funding of the build on his own property. This appears to be quite a common practice with self builders where the opportunity comes up. The fee for matching such a deal is 2% (industry standard finders fee), but although this may appear to be lower it should be pointed out that we have done little if any of the work involved, and a premium will have been built in by the person offering the opportunity, or the member who has put the deal together. Which service is right for you A franchise company has these services built in at no additional costs, so perhaps this would be an option. A handholding service may allow you to do the same thing yourself. Only the pre commissioned service can make it happen for sure. So if you want to definitely get involved in a deal situation then this is the best way to go, but also far cheaper to you. If you don't want to make any up front commitments, and commit fees in advance to justify someone actually going out and finding you the deal, then perhaps take advantage of what comes along, then the member generated may be a better option for you. The problem is of course that you will be in a queue and may miss the projects that would be ideal. Deals are manufactured situations, giving an initial profit, that is often greater than by many other means. Developments on the other hand are construction projects that will happen and in many cases is happening at the time and although showing a smaller profit initially are somewhat easier to appreciate for many. Please note: now you have access to the services of the Self Build Homes Club, you may be able to get the same effect as the services below, but without having to incur these charges at all.
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