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I’m fortunate in suddenly finding myself with a cash-rich investor who wants to JV with me. We are looking to do quick-ish BTS to start with so they don’t have to stack for rental but we would like 30%+ BMV. Less might be considered if it was close to Bristol or presented other possibilities such as planning gain. I’m going to try using finders initially as I've had no time to do any marketing yet. But where are the good finders? My friend has been trying to use them for months but has become very despondent – hence he has come to me. So far he has had:

• Unmortgageable props with serious title issues.
• Unmortgageable props of 'non standard construction' valued against standard props,
• 'Desktop valuation', presumably using mouseprice.com which can give some very misleading results depending upon what has sold recently in the area (not much in most places).
• Props in need of reno valued against comps which are already up together, with no account taken of the cost of the work.

These are just a sample! There are plenty of other dodges to inflate the apparent OMV of any given property which a bit of DD will unearth, but this is all a huge waste of time for busy people looking for a genuine deal. Including a wasted trip to Birmingham for my friend in one instance.

So, where are you guys?

This is my challenge to you. Can actually do what you say you can do? I gather Gekko once had a good reputation until he got mixed up with someone dodgy who brought him down. So it can be done. And we’ll pay sensible commissions for the right deals. Or should I forget all about you, bite the bullet and get on with my own marketing? What do other SP members think?

Rich

Richard - I don't know of any finder who is offering 30%+ deals.  Any finder who is sourcing regular genuine deals at this level should never have to advertise - they would have investors queueing up!

If you try your own marketing you will find out hard it is to get 20%25% deals never mind 30%+.  And I mean deals that are below RICS - not off comparables or EA valuations.

Colin Parker

Hi Colin, thanks for the reply. Go to Below Market Value Property Investments. Three there right now.

http://www.singingpig.co.uk/forums/thread/756207.aspx

http://www.singingpig.co.uk/forums/thread/755711.aspx

http://www.singingpig.co.uk/forums/thread/731754.aspx

My friend investigated one of his deals. It needed a lot of renovation – this apparently was not allowed for in the val. Perhaps David would like to submit another of his deals for us to take a look at? David, if it stacks up we’ll pay your double your normal commission (a grand, I believe?), how’s that?

I know it’s not easy. That’s why I doubt the accuracy of these claims. The suggestion in some of the posts seems to be that RICS is a better determinant of OMV than comps and DYOR. How can that be true? What better way to determine market value than use the market!

Rich

We’d appreciate not being sent to the Outer Hebrides just for a laugh. Something within a reasonable distance, 100 mile radius of Bristol, would do.

Rich

I’ve just noticed that this thread appears to have been ‘trimmed’. There was a reply by a lady called Debbie offering a useful-looking clearing house for deals. Perhaps she requested to have the reply (and my reply to hers) removed. I know I’m being provocative. Isn’t that one of the uses to which forums can be put? Provoke debate, root out the truth?

Rich

Richard - the 3 deals you listed are all new build/apartments.  I was referring to resale.

And as for RICS valuations that is the one that counts for mortgage purposes - especially if an investor is buying on a subsidised deposit.

There is no legitmate way of buying property with a "gifted" or "subsidised" deposit.

If there is, please document it step by step in this thread so that I can understand it.

The RICS valuation is based on the purchase price or the open market value, whichever is the lower.  That is the only type of valuation that counts for mortgage purposes on a purchase, unless you are talking about a re-mortgage?

If you are buying a property at the discounted price, then that is what the valuer will value it at.  That is dictated by the lenders and the Law Society.

Vanessa,

Are you sure that a RICs valuation is based on the purchase price or the open market value, whichever is the lower.

Since I've recently had two valuations done with Colley's (and I'd assume a RICs valuer) where the purchase price was lower than the open market value & the valuer noted that the value was higher.

i.e. for one of them, the property was being purchased for £40k the valuation came back at £45k & £50k after repairs.  As a result the BMS mortgage offer had purchase price £40k & market value £45k??