BUYING AND SELLING SECRETS
Property Control Agreements also called as Options Agreement. This gives you control of the property for a set period of time, generally from 6 months to 2 years. This allows you to do whatever you want within reasons. Let’s say you have 12 months to investigate and get planning for someone’s property. During that period of time they cannot sell it, if they want to sell the property, they have to ask your consent, and you can charge them.
There are other types of the agreement you can have as well what we called “Lockouts” or Subject to Planning Agreements. You can also get out and find private investors or bank. A lot of developers that are looking at joint Ventures they will discover for builders and investors to provide the money, and they will share the profit for it.
Who will buy?
Its is essential to know who your buyers are. It is essential to leave profits to your end-user like if your buyers are investors, buy to let or other developers. Always leave something in it for the next person.
You made a profit based on what you pay for it, so always buy at the right price. Do not chase properties. Remember that there is still another good deal or better. If you’ve got the money and you think you can see something on that property that no one does, then I suggest to get that property and bid higher.
You can also offer a lower amount of money; this is what we called ‘overages’. For example, you will offer them £50,000 for the site and additional £25,000 for every dwelling you get in there. This then protects the seller cause the seller knows you can get one house in there so they can get £75,000. Which no one offers them but you also told them there’s a good chance of getting one more dwelling so they can get £100,000. That offer way you can gain their trust as they can get a lot of money if they accepted your offer.
You can also flip contract without buying them, a lot of developers and builders are very reactive. They wait for agents that will offer them a property rather than looking for sites actively.
You can also take over a site and improve its planning; for example, we’ve taken over a site with planning permission to build two residential dwellings, and we manage to add a third dwelling. Those are the main ways of doing it.