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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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