Do Your Property Deals Actually Stack?

By Jackie Tomes 

If you’ve been following me for a while, you’ll know our property business, Tomes Homes, is built around creating a lifestyle of freedom — doing more deals with less stress, achieving financial freedom, and going on holiday every 6 weeks. 

While we were in the French Alps, we’ve been skiing, growing the business, running client calls online, and watching winter slowly turn into spring, as the snow’s gone from really great to... well, pretty slushy. 

But that kind of lifestyle didn’t happen by accident. It only works because the foundations of our property business are strong.  

And a critical part of those foundations? Ensuring your deals stack. 

This theme’s come up repeatedly on mentoring calls and in deal clinics with our clients. More specifically: why so many deals seem to stack on paper, but then cause major headaches down the line. 

See, property investors often think their deals stack. But what we keep seeing is, once you dig into the details, most people miss crucial elements. 

Maybe it’s finance costs, refurb contingency, void periods, or even investor returns. 

And suddenly what looked like a cracking deal… doesn’t make enough profit to satisfy all parties involved. 

That’s why, to help you avoid the biggest deal stacking mistakes — and build in the clarity that protects your profits and investor relationships…  

 …in today’s article I’m revealing Tomes Home’s approach to deal stacking — and how YOU can apply it in your property business. 

Why Deal Stacking Goes Wrong (Even When the Numbers Look “Fine”) 

Before we go further, let me introduce my husband and business partner, ‘Detail Dave’. 

 At Tomes Homes, I handle the big picture thinking to ensure our deals stack from a strategy perspective. Whilst Dave dives deep into the detail.  

Deal stacking is really his ‘genius zone’. So it’s our collective wisdom I’m sharing today. 

Dave’s reviewed endless deals, run countless deal clinics with our property mentees, and continually refines our deal analyser to catch the issues most people overlook. 

Every time something new crops up — a cost that’s missed or a risk we underestimated — he builds it into our analyser. So it gets sharper and more effective with every deal we do.  

And here’s something we see all the time: 

A property investor shows us a deal. On the surface, it looks solid. They’ve done basic calculations, and confidently tell us, ‘Yeah, it stacks’. 

But when Dave drops those numbers into his own analyser, cracks begin to show. 

As he puts it: “My first step is always just: take the numbers I’ve been sent and find what’s missing.” 

And more often than not, there’s something missing. 

Sometimes it’s finance costs, like valuation fees, lender legal fees, or bridging interest that wasn’t properly accounted for. Other times it’s maintenance, voids, or tenant changeovers. 

Oftentimes, people run the numbers as if it were a deal without any finance… assuming it will be fine if they get bridging. But as Dave says, once you add finance costs, it can totally change the figures. 

We’ve also seen people completely leave out investor costs — like how much investor funds are coming in, what the interest rates are, and the profit share going to their JV partner. 

And the problem is, when you don’t get all of this right, the small things can add up to destroying a deal. 

We’ve seen property investors dip into personal funds mid-refurb, because they haven’t budgeted right. Or even run out of money for essential purchases. Things can get stressful, fast. 

And if you’re working with investors? The stakes are even higher. Now you’re trying to explain why their money isn’t coming back on time… which can seriously damage trust. 

That’s why deal stacking correctly is crucial. So now, let's discuss how you can do that. 

The Right Way to Stack a Deal   

Over time, Dave has developed a system that enables property investors to see the full picture… not just the basic numbers. And according to Dave: 

“There are 3 parts to stacking a deal: variables, profits, and parties involved.” 

 So,  let’s break each one down. 

1. Variables 

These are all variables that go into a deal. And most people only capture the obvious ones. 

We look for realistic end values and rental income. Costs like stamp duty and legal fees. All finance costs — bridging interest, valuations, lender legal fees, arrangement and exit fees. And then there’s refurb contingency. 

As Dave says, ‘you’re not freaking omniscient, you do not and cannot see the future’. And that’s why contingency is essential.  

We allow 20% contingency, even after 11 years of experience, because unforeseen challenges almost always come up.  

Maintenance and voids are another big one. For example, at Tomes Homes, we’ve seen roughly 5% of revenue go to maintenance in the last 8 years (and that’s on a portfolio that’s all been recently refurbished). 

Void periods and tenant changeovers are also very real. And you’ve got to plan for them to know if a deal actually stacks. 

Leave any of these out, and the little things can add up to wrecking a deal.  

2. Profits 

This is where many property investors have blind spots. 

According to Dave, there are 3 types of profit you must account for, ‘cashflow, project profit, and capital appreciation’.  

Cashflow is your monthly rental income. Project profit comes from adding value, e.g. through refurbishment. Capital appreciation is the long-term gain from holding the asset. 

When it comes to capital appreciation, we always check historical growth. What's happened in the last 20–25 years? Is the area regenerating? What’s coming that might push values up? 

For example, a lower-cashflow deal might outperform a higher one, long-term, if it’s in the right location.  

Another thing often missed is calculating ROI. You need to be crystal clear on actual ROI (not just cashflow), because as Dave says, ‘there’s no way to know if it’s performing particularly well or particularly badly if you’re just looking at pound notes’. 

The more complex the project, the more return you’ll need to justify the risk. 

3. Parties Involved  

This one’s critical, and often overlooked. 

As Dave says, ‘if there’s not enough profit to satisfy all parties involved, the deal doesn’t stack’. 

The deal needs to work for you and your investors.  

You need enough cashflow to make it worth your time. They need to get their money back and a clear ROI. 

We see far too many analysers leaving out the investor section entirely. Which is a recipe for disappointment, or much worse. 

That’s why it’s important to ensure your analyser includes:  

- How much investor funds are coming in

- What’s the interest rate on those funds? (Is it high enough for them to be happy?)

- If there’s money held in the deal, when is it exiting? How is it going to exit? 

- What happens if all money doesn’t come back out on the first refinance?  

If you haven’t factored these things in, you may be setting the deal up to perform badly… for you and your investors. 

Reducing Risk, Keeping Investors Happy… and Doing Better Deals with Less Stress 

Deal stacking may not be the most glamorous part of property… but it’s crucial to making everything else work.  

Doing it effectively gives you more confidence when raising finance. And it helps protect investor trust.  

Plus, it makes it easier to deliver what you promised, without major surprises mid-refurb, awkward investor calls, or sleepless nights wondering where all the money’s gone.  

When you’ve properly accounted for all variables, profits, and parties involved… you’re not relying on guesswork. You’re making clear, informed decisions based on the actual numbers behind the deal. 

It can take a bit more effort upfront, yes. But in our experience, it’s completely worth it. 

As I mentioned, every time we spot a new risk or hidden cost, Dave adds it to our analyser. That allows us to reduce risk, safeguard investor relationships, and consistently do better deals with less stress.   

So if you’re finding things aren’t working out as expected with your deals? My advice is: take another look at your deal stacking approach. And apply the lessons in this article.  

It may sound cliche, but the devil is in the details.

To doing more deals and going on holiday every 6 weeks,  

Love Jackie (and ‘Detail’ Dave) x