7 Days, 7 Lessons -Creative Deal Structures
Making deals work when money or terms don’t line up
Day 1: Lease Options Explained
Not every deal fits neatly into a box. Sometimes the seller wants more than the property is worth.
Sometimes you don’t have the capital to buy outright. That’s where creative deal structures come in — they allow you to make deals work when traditional approaches fail.
And one of the most powerful tools in your toolkit is the Lease Option Agreement.
1. What Is a Lease Option?
A lease option is essentially two agreements combined:
Lease Agreement – You rent the property from the seller for an agreed period.
Option Agreement – You secure the right (but not the obligation) to buy the property at a set price within or at the end of that period.
Think of it as “control now, own later.”
2. Why Sellers Say Yes to Lease Options
Sellers often agree to lease options because:
They get monthly income during the lease period.
They don’t have to deal with tenant issues if you manage it.
They lock in a future sale price and avoid uncertainty.
They can move on from a property they no longer want the hassle of.
3. Why Investors Love Them
For you as the investor:
Low upfront cost: You don’t need a big deposit.
Cashflow potential: Rent from tenants can cover (and exceed) lease payments.
Flexibility: You can buy later if it makes sense — or walk away if it doesn’t.
Capital growth: If property values rise, you still buy at the pre-agreed price.
4. Example Scenario
A seller wants £150,000 but the market value today is only £140,000. Instead of walking away:
You agree to lease the property for 3 years, covering their mortgage.
You secure an option to buy at £150,000 after 3 years.
In the meantime, the property cashflows from tenants, and if the value rises above £150,000, you exercise your option and win big.
The seller gets certainty and income. You get control and upside — without needing £150,000 today.
Activity
Write down one situation you’ve seen where:
A seller’s price was too high, OR
You didn’t have the funds to buy outright.
Then ask yourself: Could a lease option have solved this?
Takeaway: Lease options give you the ability to control property now and buy later — solving problems for both sellers and investors.
Want to learn the exact steps, clauses, and legal wording to use in a lease option agreement? That’s inside our Education Hub, where we break down the mechanics in detail.
Making deals work when money or terms don’t line up
Day 2: Vendor Finance Basics
Yesterday, we looked at how Lease Options can solve problems when a seller's price is too high or you lack capital.
Today, we're diving into another powerful creative strategy: Vendor Finance.
This tool allows a seller to act as the bank, solving a range of issues for both parties.
1. What Is Vendor Finance?
Vendor finance (also known as a seller-funded loan) is a simple but underutilized concept: the seller provides a loan to the buyer to purchase their property. Instead of getting a traditional mortgage from a bank, you get a loan directly from the person selling the asset.
Think of it as the ultimate win-win: the seller gets a guaranteed, interest-earning income stream, and you get to acquire a property without needing a traditional bank loan.
2. Why Sellers Say Yes to Vendor Finance
Sellers often agree to this when they're:
Struggling to sell: The property may have issues that make it unattractive to traditional lenders, like structural problems or a lack of EPC.
Looking for passive income: They may not need the lump sum of cash right away and prefer to receive a monthly income with interest.
In a hurry: This can be a much faster process than waiting for a buyer to secure a traditional mortgage, which can take months.
3. Why Investors Love Them
For you as the investor:
No Bank Required: You bypass the strict lending criteria of banks. This is invaluable if you have poor credit, are a new investor, or if the property itself won't meet a bank’s lending criteria.
Flexible Terms: The terms of the loan (interest rate, repayment schedule) are negotiated directly with the seller, which can be much more flexible than a bank.
Low Upfront Costs: You can often secure the deal with little to no down payment.
4. Case Study: The Property with a Problem
The Scenario: You've found a property valued at £100,000, but it has a damp issue that makes it impossible to get a mortgage. The seller, who owns the property outright and is struggling to find a cash buyer, needs to sell quickly.
The Solution: You propose a vendor finance agreement. The seller agrees to "loan" you the £100,000 purchase price at a low-interest rate of 4% over 5 years. You make monthly payments directly to the seller, and the property is legally yours.
The Outcome:
Seller's Win: They get their full asking price, plus an interest-earning income stream, and are free from the burden of the property's issues.
Your Win: You acquire a property with no bank financing, fix the damp problem, and can either rent it out for a positive cash flow or sell it for a significant profit once the issue is fixed. You've secured a deal that most others would have walked away from.
Activity
Find a property on a property portal that has been listed for a long time or has obvious structural issues. Draft a short letter to the owner (or agent) suggesting an alternative to a traditional sale. How would you frame the benefits of vendor finance for them?
Takeaway: Vendor finance allows you to acquire difficult properties and bypass banks entirely, creating a pathway to deals that are invisible to most investors.
Want to learn how to legally structure vendor finance agreements and what to say to sellers to get them to agree? That’s inside our Education Hub
Making deals work when money or terms don’t line up
Day 3: Joint Ventures (JVs) and Partnerships
Not every property journey is a solo mission. Joint Ventures (JVs) and partnerships are powerful tools that allow you to combine forces, pooling resources and skills to take on deals you couldn't handle alone.
A JV is a specific type of partnership where two or more parties come together for a single, well-defined project. The key is that you are leveraging each other's strengths to create a win-win scenario.
1. The Two Main Types of JVs
There are many ways to structure a JV, but most fall into one of these two categories:
• The "Money Partner" JV: This is for the deal sourcer or project manager who can find and manage a great deal but lacks the capital. The money partner provides the funds for the deposit, refurbishment, and holding costs.
• The "Skill Partner" JV: This is for the investor with capital who doesn't have the time or expertise to find and manage a deal. The skill partner handles the entire process, from sourcing and due diligence to project management and exit strategy.
2. Case Study: The "Money Partner" JV
The Scenario: You've found a fantastic property with a value of £150,000, which you've secured for a purchase price of £100,000. The refurbishment costs are £25,000. Your total profit is projected to be £25,000. However, you don't have the £25,000 for the refurb, let alone the deposit.
The Solution: You find a money partner. You present them with the deal, showing them the numbers and your full project management plan. They agree to fund the entire project in exchange for a share of the profit.
The Outcome: The money partner provides the capital, you manage the project, and when the property is sold, you both walk away with a share of the profit. You've just turned a brilliant deal you couldn't do into a real-world success, all without using your own money.
3. Case Study: The "Skill Partner" JV
The Scenario: A new investor has £100,000 in capital but is time-poor and has no experience in property. They're afraid of making a mistake and losing their money. They're looking for a trusted partner.
The Solution: You, as the experienced partner, present a deal to them. You explain your experience, show them your track record, and outline a project plan for a specific property. They agree to fund the entire project, and you agree to manage it.
The Outcome: The money partner gets to invest in a property, leveraging your skills and experience to mitigate their risk. You, as the skill partner, get to execute a deal you may not have been able to fund yourself, earning a share of the profit and building your track record.
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Activity
Think about your own strengths and weaknesses. Are you better at finding deals, or do you have access to capital? Now, draft a short proposal (3-5 sentences) to find a JV partner.
• If you have a deal: What are the key numbers and what do you need from them?
• If you have money: What are you looking for in a deal and what can you provide?
How to Improve the "Money Partner" Case Study
The "Money Partner" case study above assumes an equal split. But that's not always the best way to do it. Think about the potential risks and work involved.
• Task: How could you structure the profit split in the case study to be fairer to the partner taking on the larger risk? What would be a more equitable way to divide the profits?
Takeaway: Joint ventures allow you to overcome your own limitations by leveraging the strengths of a partner. They are the ultimate creative tool for scaling your property business.
Focusing on Below Market Value (BMV) strategies!
Below Market Value (BMV) Strategies:
Unlocking Instant Equity
Today, we're talking about one of the most exciting and profitable strategies in property investment:
buying Below Market Value (BMV). This means acquiring a property for less than its true worth, effectively creating instant equity from day one. It's like finding a hidden treasure, and with the right approach, these deals are more common than you might think.
Why do properties sell BMV?
Properties typically sell below market value because the seller has a strong motivation to sell quickly. This urgency often outweighs their desire to achieve the highest possible price. Common motivations include:
Financial Distress: Repossessions, debt, or needing cash quickly.
Life Changes: Divorce, emigration, inheritance (probate), or a quick relocation for work.
Problem Properties: Properties that are neglected, require extensive renovation, or have structural issues that deter most buyers.
Tired Landlords: Those who no longer want the hassle of managing a rental property.
Portfolio Sales: Investors looking to offload multiple properties quickly.
The key to BMV is understanding the seller's pain point and offering a solution that works for both parties – a quick, hassle-free sale for them, and a great deal for you.
Types of BMV Strategies
While the core principle is the same, there are several ways to source and execute BMV deals. Here are some of the most common:
Direct-to-Vendor Marketing: This involves reaching out directly to property owners who might be motivated sellers. This can be done through:
Leaflet drops/Direct mail: Targeting specific areas or property types.
Online advertising: Using platforms like Facebook, Google, or specialized property forums.
Door-knocking: A more hands-on approach to identifying motivated sellers.
"We Buy Any House" services: Setting yourself up as a quick cash buyer.
Estate Agents & Property Sourcers: While many BMV deals don't hit the open market, building relationships with proactive estate agents and property sourcers can yield results. They might have access to properties that are about to come to market, or "off-market" deals where sellers prioritize speed over price.
Auctions: Property auctions are notorious for BMV opportunities, especially for properties that need significant work or have unusual circumstances. The key is thorough due diligence before the auction, as most sales are unconditional.
Networking: Connecting with other investors, solicitors, accountants, and even local community groups can uncover opportunities. Referrals are powerful!
The BMV Process
Sourcing: Identifying potential BMV properties through the strategies above.
Due Diligence: This is critical. Research the true market value, understand the seller's motivation, assess renovation costs, and check for any legal or structural issues.
Negotiation: Presenting an offer that solves the seller's problem while securing a good deal for you. This often involves being flexible with completion times or taking on properties in "as-is" condition.
Financing: Having your finance in place (whether it's cash, bridging loan, or a pre-approved mortgage) is essential to act quickly.
Exit Strategy: Knowing how you will profit from the property (e.g., flip for a quick profit, refinance and rent out, develop).
Chart: Key Differences in BMV Sourcing Methods
To help you understand which method might be best for you, here's a quick comparison chart attached to this post.
Feature Direct-to-Vendor Marketing Estate Agents /
Activity 1: Spot the BMV Opportunity
Imagine you're scrolling through property listings or driving around your local area. List three different scenarios where a property might be selling BMV, based on what you've learned today. For each scenario, explain:
What is the likely motivation of the seller?
How might you identify this opportunity?
What would be your first step to investigate further?
Activity 2: Craft Your BMV Pitch
You've identified a motivated seller through direct marketing – they need to sell quickly due to an unexpected relocation. The property needs about £20,000 of refurbishment, but once done, it could sell for £200,000. They want a quick, hassle-free sale.
Task: Draft a short, compelling pitch (3-5 sentences) you would give to this seller, highlighting how you can solve their problem and secure a BMV deal. What would you emphasize?
Takeaway: BMV strategies are about understanding seller motivation and offering solutions. By proactively seeking out these opportunities, you can acquire properties with built-in equity, significantly boosting your investment returns.
Follow us so you don’t miss tomorrow’s lesson, where we'll explore Assisted sales — when to use them.
Want to master the art of negotiation and due diligence for BMV deals? Our Education Hub has in-depth guides and templates
What is an Assisted Sale?
An Assisted Sale (AS) is a strategy where an investor helps a motivated homeowner (the vendor) sell their property for a better price by funding and managing necessary improvements or refurbishment, all without the investor ever having to buy the property outright.
It's often described as "Don't Buy, Refurbish, Sell".
The Core Mechanism
The vendor remains the legal owner, but a legal agreement (often an Option Agreement or Joint Venture Agreement) gives the investor the right to manage the property and the final sale.
1. Agreement: The investor and vendor agree on a Target Sale Price and a Target Profit Split.
2. Investment: The investor fronts the cash for the refurbishment, not the purchase.
3. Refurbishment: The investor manages the work, instantly increasing the property's market value.
4. Sale: The property is put back on the open market, typically at a higher price due to the improvements.
5. Completion & Profit Split: Once the sale completes, the vendor receives their pre-agreed amount (or original valuation), the investor is reimbursed for their refurbishment costs, and the remaining profit is split according to the initial agreement.
Investor Benefit
Low Money Down: No Stamp Duty, no mortgage, no large deposit.
High ROI: Only capital is for the refurb, leading to an excellent return on capital employed.
Scalability: Can run multiple deals simultaneously without tying up millions in capital.
Vendor Benefit
Higher Sale Price: Gets a market or above-market price without having to pay for the work themselves.
Zero Stress/Cost: Investor manages all the refurbishment and selling hassle and costs.
Quick Exit (Eventually): Gives them a guaranteed exit strategy for a difficult property.
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When to Use Assisted Sales: The Ideal Scenario
The Assisted Sale strategy is only suitable for vendors with a high level of Motivation and a property that has a high potential for Value Uplift.
The 3 Motivated Vendor Scenarios (When to Use AS):
1. The "Can't Sell in Current State" Vendor:
o Property Profile: Properties that are dated, unmortgageable, need significant cosmetic work (new kitchens, bathrooms, decor), or have been on the market for an extended period.
o Vendor Motivation: They lack the funds, time, or inclination to do the refurb themselves, and are frustrated by low offers or a lack of interest. They need a specialist to unlock the hidden value.
2. The "Probate/Inheritance" Vendor:
o Property Profile: Inherited properties, often vacant, with dated interiors or a need for deep cleaning/clearance.
o Vendor Motivation: They simply want a clean, fast exit. They are not emotionally attached, live out of the area, and just want to convert an illiquid asset into cash with minimal effort and without paying for renovation.
3. The "Chain Breaker" or "Downsizer" Vendor:
o Property Profile: Homes where the owner needs certainty on a sale price and a clean break to complete an onward purchase (though this is more common with corporate "quick buy" assisted sales).
o Vendor Motivation: They need a reliable exit that bypasses traditional market delays and the risk of a chain collapsing. They value certainty over waiting for the absolute highest price.
Activity: Deal Filter Challenge
Imagine you are looking for an Assisted Sale opportunity. Which of the following vendors would you prioritise for an Assisted Sale, and which would you reject?
Priority (High/Low/Reject) Justification (The 'Why')
Vendor Scenario
A. A couple selling their perfectly renovated, high-spec flat to move abroad.
B. A single owner who inherited a two-bed house that hasn't been decorated since the 1970s and is now living 300 miles away.
C. A landlord selling a tenanted flat with a great rental history, but a short lease (65 years).
D. A family selling a three-bed house that needs a new kitchen, bathroom, and garden tidy-up, but they need the cash to complete their own purchase in 3 weeks.
Vendor Scenario Priority (High/Low/Reject) Justification (The 'Why')
A. A couple selling their perfectly renovated, high-spec flat to move abroad. Reject No value-add potential. The property is already at its peak price. The AS strategy relies on the investor adding value and making a profit from the uplift.
B. A single owner who inherited a two-bed house that hasn't been decorated since the 1970s and is now living 300 miles away.
High Priority High Motivation & High Uplift. The distance and emotional detachment ensure high motivation for a quick, hands-off sale. The dated decor offers massive, low-cost profit potential (cosmetic refurb).
C. A landlord selling a tenanted flat with a great rental history, but a short lease (65 years). Reject (unless expert) Problem too complex. The value issue is legal (lease length), not cosmetic. A standard AS isn't the solution; this requires a specialist lease extension strategy, which is a different model.
D. A family selling a three-bed house that needs a new kitchen, bathroom, and garden tidy-up, but they need the cash to complete their own purchase in 3 weeks. Low Priority High Motivation, but unrealistic deadline. While the refurb potential is good, the investor cannot guarantee a full sale completion in 3 weeks. The vendor's need for instant cash is a strong motivator, but the timeline makes the deal high-risk.
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Case Study: The Probate Project
Element Detail
Property: 3-bedroom semi-detached house.
Vendor: Three siblings inheriting the house. None lived in the area.
Condition: Structurally sound but untouched for 40 years. Strong odours, old carpets, wood-chip wallpaper, an obsolete kitchen, and a severely overgrown garden.
Asking Price (Pre-AS): £220,000 (Based on a quick sale in current state).
Investor Agreement: Investor offers to manage and fund a full cosmetic refurb.
Profit Split: Vendor receives £230,000 (a £10k uplift on original asking). Remaining profit split 50/50.
Investor Cost: Refurbishment Cost: £18,000
The Results
1. Investor Action: Refurb completed in 5 weeks (new kitchen, bathroom, flooring, paint).
2. New Valuation: Post-refurb market value estimated at £285,000.
3. Final Sale Price: Property sold after 1 week on the market for £280,000.
Calculation Investor Profit Vendor Gain
Total Sale: £280,000
Vendor Take: -£230,000 £230,000
Investor Refurb Cost: -£18,000
Total Profit Pool: £32,000
Investor Share (50%): £16,000
Vendor Share (50%): £16,000
Investor Total Return: £16,000 Profit (£16k / £18k cost = 88.8% ROI)
Vendor Total Take: £246,000 (£230k + £16k)
Conclusion: The Assisted Sale was the only way the investor could achieve an 88.8% ROI on just £18,000 capital, and it allowed the vendors to walk away with £26,000 more than they would have received on the open market in its original state, without lifting a finger.
DAY 6: Raising Private Finance — Safely & Legally
Most property investors hit the same frustrating wall: they find a killer deal, but the banks say no, or the timeline is too tight.
That's where Private Finance comes in. It’s the smart way to scale, but doing it wrong isn't just risky—it's ILLEGAL.
The Lesson: What is Private Finance?
Private finance is simply borrowing money from individuals in your network (friends, family, or savvy investors) instead of institutional lenders.
It works like this:
They lend you capital
You fund or refurbish deals
You repay with an agreed interest
The difference between a successful, safe investor and a liability? Compliance and Contracts.
The 4 Pillars of Legal Funding
You must protect both yourself and your lender. This isn't optional; it's the law.
Transparency is Law: Disclose all risks, timelines, and security. Never promise a guaranteed return.
Formal Agreements: Ditch the handshake. Use professionally drafted, legally binding loan agreements that specify terms and repayment.
FCA Awareness (The Rules): You cannot mass-market investments to the public unless you are FCA regulated. Stick to raising funds from people you already have a relationship with.
Security: Give your investor confidence by securing their money with a Legal Charge over the property or a personal guarantee.
The BTG Advantage: Stop Stressing Over Paperwork
Most new investors freeze because they know they need watertight, compliant contracts... but they don't have them.
This is what Bridging The Gap solves.
When you're inside the platform, you get instant access to:
Professionally Drafted Contracts: Ready-to-use loan agreement templates.
Step-by-Step Guidance: Setting up safe and legal security options (e.g., registering a charge).
You focus on finding and negotiating the deal; we handle the legal compliance.
Activity: Your 3-Part Investor Pitch
Imagine a potential investor asks you: "Why should I lend you money instead of keeping it in the bank?"
Write down a powerful, simple, 3-part answer:
The Benefit to Them: (e.g., A safe, above-market return)
How You Protect Their Funds: (e.g., Legal agreement, property security)
Why They Should Trust You: (e.g., Your transparency, the support of your platform/toolkit)
Case Study Snapshot: The £40k Loan
This deal was only possible through compliant private finance:
The Need: £40,000 required to refurbish an unmortgageable flat.
The Source: A retired professional seeking better returns than savings.
The Compliance: BTG template agreement used, First Legal Charge registered over the property.
The Result: Deal refinanced, investor repaid £40,000 capital + £4,000 interest in 9 months.
Investor Made the deal happen with zero upfront capital.
Lender earned a safe, high-yield return.
If having all your contracts and templates ready to go would give you the confidence to start raising capital, you know exactly why we built Bridging The Gap.
Day 7: The Art of Deal Structures on Bridging The Gap
The Lesson: What is a Deal Structure?
A deal structure is the legal and financial framework that outlines the rights, responsibilities, payments, and timeline for a property transaction. It’s the difference between a simple buy-and-sell, and a custom, profitable solution that addresses the vendor’s unique problem.
You use deal structures to gain control over a property and its value, long before you take on the financial liability of full ownership.
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Key Elements of a Modern Deal Structure:
Element Focus Why It Matters
Price Not just the final price, but the timing of the payments. Allows you to lock in a purchase price today, but pay later when the property has been renovated and revalued.
Control Getting legal rights to manage, refurbish, or sell the property. Essential for strategies like Assisted Sales (Day 5), as you need to be able to add value before you own it.
Exit The clear path to turning the deal into profit. Determines the repayment method for your Private Investor (Day 6) and how you realize your profit (sale or refinance).
The 3 Essential Structures for Scaling
For the modern investor, success is built on solutions beyond the standard mortgage-and-purchase.
1. The Option Agreement (The Control Structure)
An Option is a legal contract where the seller grants you the exclusive right to purchase their property at a pre-agreed price within a specified time frame (e.g., 6–18 months).
How it works: You pay the vendor a small, non-refundable Option Fee to secure the deal. You then have the option period to add value (get planning, refurbish, or find a buyer).
When to Use It:
When you need time to raise finance (Day 6).
When you need time to get planning permission to significantly increase the property's value.
For Assisted Sales (Day 5), where the option can be combined with a management agreement to give you the legal right to refurbish the vendor's property.
2. The Joint Venture (JV) Agreement (The Partnership Structure)
A JV is a specific structure used when you partner with someone who brings capital, skills, or property, and you split the profits.
How it works: Formalizes the relationship with your Private Investor (Day 6). Instead of a fixed interest rate, the investor takes an equity share (e.g., 50% of the profits, not the capital).
When to Use It:
When an investor wants a more hands-on role or a higher potential return than a simple loan.
When you, as the deal sourcer and project manager, have no cash but massive value to offer.
3. Delayed Completion (The Time Structure)
This is where contracts are exchanged quickly, but the actual completion (the day money changes hands) is set months in the future.
How it works: The seller gets the certainty of a guaranteed sale today, and you get the time you need to organize your finance or execute a light refurb before completion.
When to Use It: When a vendor is motivated by certainty and you need a 3- to 6-month window before you can access traditional lending or finalize your refinance plans.
Activity: Structuring the Deal
You've found a motivated seller (Day 1) with a probate property that needs a £30,000 refurb. A family friend (your Private Investor from Day 6) is willing to invest the £30,000 for the refurb.
How would you structure this deal to ensure you control the refurb, the investor is safe, and the vendor gets a better price?
Step Action/Structure Used Purpose
1. Vendor Agreement Option Agreement (with a Management Clause) Gives you the legal right to access and refurbish the property before buying it.
2. Investor Agreement Loan Agreement (with First Charge) OR Joint Venture Agreement Secures the investor's £30,000 on the property (Day 6).
3. Execution You manage the refurb and secure a Buy-to-Let Mortgage. You used your expertise (Day 5 skills) and controlled capital (Day 6 finance) to execute the deal.
4. Exit You execute the Option, buy the property with the BTL mortgage, and repay the investor. The deal is closed, the investor is repaid, and you now own a cash-flowing asset.
Bridging The Gap: Bringing the 7 Days Together
This entire week has been about showing you that the missing piece in property is not access to money—it's access to compliant systems and professional contracts.
You now know that Assisted Sales (Day 5) are worthless without the Option Agreement (Day 7) to legally structure the deal.
You know that Private Finance (Day 6) is reckless without a secure Loan Agreement (Day 7) to protect both parties.
The deal structure is the blueprint. Our job at Bridging The Gap is to give you the pre-made, professionally drafted blueprints so you can focus 100% on execution.
Thank you for completing our 7 Days, 7 Lessons series. The journey from idea to execution is complete. Now, it's time to build.