Singing Pig

Hi to all at singing pig.  I'm a complete novice when it comes to property investment, but something i'd really like to get into.  I've been reading a few posts & reserching the internet, purely out of interest, to see how easy it is to get into the property game.  There's lots of BMV "companies" out there but how do you tell the real ones & good deals available from the scammers?  Obviously i'm quite sceptical being a beginner!

As a newbie i'm sure you can appreciate i'll have lots of questions but this forum seems like the best one out there to me in order to gain some valuable help & advice!  I'm in a pretty tricky situation, it certainely seems like it to me anyway.  I don't have a house & mortgage of my own at the moment & have an adverse credit history, although all creditors settled & nothing outstanding now.

Is it still possible to buy BMV properties being in the situation i am in? 

My main concern is how to finance this without any substantial capital to do so in todays current climate?  I would be interested in a BTS although the possibility of turning around a quick sale & making a profit could be very difficult?

I understand that Ready made BMV deals are a good opportunity for someone like me to test the waters & build some confidence?  However, it's a worry spending out X amount for a deal & if it falls through because i'm unable to obtain finance i've lost money before i've started!

If i were to be able to obtain finance would the interest rate be so high that if i decided to rent the property i would have a negative cash flow?

Can BMV lead generators be trusted?  I'm sceptical of these things because if the deals are that good why are they being offered to other investors to make a profit from?

Also unsure of how a deal would work from start to finish & how & when any fees should be paid (at the start or on completion)?

It's mainly the risk of the financial implications that's my main concern.  Capital gains tax is something i'm not completely coverse with either.  Any help/advice on how to make & where's best to look (any reputable ready made deal generators maybe) would be greatly appreciated.

Cheers

Ian

Hi Ian,

 Welcome to SP and the wonderful world of property!

My advice would be, before you do anything, speak to a mortgage broker to find out if you will qualify for lending.  They will do a Fact Find on you to ascertain your situation, and then find out if you pass the lenders' ever stricter criteria.

I am sure there are many brokers on SP who would be able to advise you on your individual situation.

 Good luck!

Vanessa

Hi Ian 

I second what Vanessa said,  you want to know where you stand before you start planning to go forward.

You are also right to be sceptical. Property is big business and there are a lot of people out there trying to take the money of novices to property investing.  If you are looking at lead sellers you might want to check out Roberts service at: http://www.rapidpropertyinvestment.com/  I haven't used them myself, but I have communicated with Robert and I know a lot of people that have used them and they are one of the best and most honest and reliable in the field. 

buy and sell is a risky strategy in the current market (in my opinion).  Be careful and don't be afraid to ask loads of questions on here are any other property forum.  However, do a search first and you will find most of the good stuff comes from people who have already answered your questions for someone else. 

Good luck.

Hi Vanessa,

I assume your referring to a credit check from a mortgage broker?

Cheers

 Ian

Hi Ian, 

I am referring to a Fact Find, which is a far more indepth look at your financial situation than just your credit check (although that is part of it).

The broker will be looking at your salary, pay slips, how long you have been employed etc, how much credit card debt you have, how much other debt you have, what other assets you have etc.

They also need proof of your address, identity, and you will need to be on the electoral role where your home address is.

Until they have done this, they will not be able to tell you what kind of mortgage products you can have access to.

I am not a mortgage broker so I can only speak in very broad strokes on this.  You need to have your situation assessed by a broker who will be able to help you in further detail.

Hope that clarifies it a bit?

V. 

Ah thanks for clarifying that, although one broker may refuse, another may be able to help.  In order to find that out i would need more than one credit check which could have a negative impact on my file no?

I notice that a few of these ready made deals have all finance in place, i'm assuming that this is providing your not in a poor financial situation?

Many thanks for your answers.

Cheers

In theory, Ian, all brokers would use the same way to assess your ability to get lending.  However, when it comes to filling in mortgage application forms, some may answer more "creatively" than others, shall we say.

Credit checks do impact negatively on your file, so I would suggest you ask someone for a recommendation for a good mortgage broker who will give you the right advice , straight off the bat.  (I use a company called All Set To Let.  Have a look at www.allsettolet.co.uk.  They have always done me proud).

These "ready made deals" most likely have a specific mortgage product in place (which is the product they have been "stacked" on), but whether you would get that mortgage product or not is another matter.  You would have to apply for that mortgage and see if you got accepted.  Mortgage products are changing on a daily basis and it is sometimes hard to keep up ... which is again why you need to work very closely with a broker to take advantage of good products when they appear.

If you are going for a ready made deal, make sure you do all your own due diligence to satisfy yourself as to the veracity and integrity of the deal.

Hope this helps ....

V.

Hi Ian

Welcome to SP.

Adverse credit is not the end of the world, however it may prove difficult to source a BTL mortgage in the current climate as most lenders less keen to consider any adverse at present even with a hefty deposit.

If you are looking for cash for low risk I would recommend becoming a property finder. There are many investors looking for good quality deals providing they genuinely stack up on rental and are realistically valued. Alternatively you could consider sandwich options if your credit is very poor. Check out posts on Rick Otton's course or search the forum for lease options for more info.

Times are tough but still money to be made if you thing outside the box.  Good luck

Edd