Author Archives: benrgersropety59

Crestway

Category : Uncategorized

The Marketing:

The owner of this property responded to a leaflet that was delivered through his letterbox from our team of leafletters.

The Situation:

The owners had divorced some 6 years prior and only the ex-husband was living in the property. He had recently begun a relationship with a lady in Port Elizabeth in South Africa, and was interested in getting on a plane to his new life. The only thing stopping him was this house, that did not have central heating and was getting very little viewings from the estate agent, and no offers.

The Solution:

We took on and babysat the mortgage payments from him and agreed to give him the “cash-bit” (equity) of £10,000 in 6 years’ time. He was happy with this because it locked in the equity he would get in the future and allowed him to get on with his life straight away.

The Maths:

We bought it from the owners on a 6 year Option:

  • The property was worth £125,000
  • The mortgage on this property was £115,000
  • The mortgage payments were £337.50 per month
  • We sold it to a plumber and his wife who did not qualify for a mortgage because he was only recently self employed
  • Market rent was £650 pcm
  • They paid £850 pcm “Super Rent”
  • They agreed to buy it at £140,000 in 5 years’ time
  • They put down some “getting started money” of £5,000

The Result:

  1. Seller very happy to have got rid of the property that was the only thing stopping him emigrating and starting a new life with his new partner
  2. Buyer very happy to have the opportunity to buy a property now (and stop wasting money on dead rent), when they know they won’t qualify for a mortgage for another 2-3 years
  3. I was very happy to have helped both parties and made £5,000 straight away, and £15,000+ profit in total.

Bridgestone

Category : Uncategorized

The Marketing:

This frustrated and “accidental” landlord came across my details on Gumtree.

The Situation:

She never intended to be a landlady, but had moved in with her boyfriend about 80 miles away and was not comfortable using a letting agent to manage the property, or to look after this house herself. She also had an ongoing dispute with a neighbour and just wanted rid of it, and was not getting any joy with it up for sale in the traditional way with the estate agent.

The Solution:

We came in and immediately took responsibility for the property, the mortgage payments, the maintenance of the flat and the ongoing interaction with the neighbour.

The Maths:

We bought the studio on flat from the owner on an Instalment Contract:

  • The property was worth £115,000
  • The mortgage on this property was £92,000
  • The mortgage payments were only £137.00 per month
  • We agreed to buy it for £115,000, and sold it on to a Polish couple that were pregnant and wanted somewhere to put down roots rather than just carry on renting
  • Market rent was £725 pcm
  • They paid £900 pcm “Super Rent”
  • They agreed to buy it at £135,000 in 5 years’ time
  • They agreed to bake cakes for the neighbours to smooth things over..!

The Result:

  1. Seller very happy to not worry about the house, any letting agents, or the neighbour any more
  2. Buyer very happy to have the opportunity to buy a property now when they haven’t been in the country long enough to qualify for a mortgage, and set up the nursery for the new child.
  3. I was very happy to have helped both parties and made £20,000 profit for solving their problems.

BARN OAST

Category : Uncategorized

The Marketing:

This property came to me direct from another investor who is based in Wales. He knew that I was a bit of an expert in these strategies and the lead had come to him somehow via his website for this converted barn in Kent.

The Situation:

The owners were going through some financial challenges in the downturn of the market and a failed business. They had a big (and expensive) mortgage, but wanted to sell up, release their equity, and move on to a rented property

The Solution:

We agreed to do an “Assisted Sale” with them. We found a guy who worked in the city and had lots of cash and a great income, but a very poor credit rating due to some poor decisions in the last 12 months. He came in with a chunk of cash and agreed to babysit the current mortgage payments for a period of 5 years until his credit profile improved and he could complete on the purchase of the house at the agreed price

The Maths:

  • The owners agreed to sell on a 10 year Instalment Contract:
  • The property was worth £530,000
  • The mortgage on this property was £450,000
  • The mortgage payments were £3070.00 per month
  • We agreed that anything above £550,000 that it was sold for, I would keep
  • We sold it for £590,000
  • The buyer came in with £100,000 “getting started money”
  • I took a £40,000 “fee” for helping both parties
  • The owners got £60,000 of their equity straight away with £40,000 invested still in the property, to be released when the transaction completed in the future
  • The buyer happily paid the monthly mortgage payment

The Result:

  1. Seller very happy to get a big chunk of capital out straight away – and quickly
  2. Buyer very happy to have the opportunity to buy a property now when they don’t have the credit rating to allow them to get a mortgage. Time will “repair” this credit rating.
  3. I was very happy to have received a healthy fee for solving two peoples problems.

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