Welcome To SingingPig.co.uk

Hi Haf,

I'm in Coventry - drop me an email to lisa@keys-property.com - we can grab a coffee and see if there is anything mutually beneficial to be done as we are local to each other.

Don't rule out the local auctions on a whim; the main one is Loveitts and you can snap up a bargain or two if you know what you are looking for.

Lisa

 

Haf – I’m about to enter my 5^th successful year in property and can say I have followed both Glen Jackson and Lisa (on &off) since the start as they both have excellent reputations. You won’t go far wrong listening to these guy’s.

Good Luck

Tony

Harmann healy, barnard marcus,allsopp,andrew robertson, and Must be sold (hefty fees), all on the internet with internet catalogues. Avoid Auction alert companies that charge as info is free. The research you do for auctions needs to involve viewing the houses prior to auction to get a proper feel for value imho.

I believe mortgage works recently released a new product where if you purchased a property say worth 120k for 90k there fore you borrow 75% of 90k. Once you have finished the refurb you can draw down subject to survey a further 25k assuming it values at 125. this makes it a virtually "no money left in deal". If you keep repeating that process assuming the deals cash flow well your capital will stay intact allowing you to buy 12 or more properties in a year without neding to remortgage your property.

 

Glenn Armstrong

www.glennarmstrong.com

Glenn this product is a max of 70% LTV both upon purchase and subsequent refinance so unlikely you'll pull out all your cash especially as it must be used where you're actually doing works on the property not simply for buying BMV.

But still a cracking product if used right.

Incidentally my next article in Februarys Your Property Network magazine is on this very topic; how to find BMV properties.

Lisa
lisa@keys-mortgages.com

 

Hi again Haf,

 

As Glenn says, one of the main reasons to buy BMV is to recycle the deposit and buy more properties quickly. If this is not important to you, the BMV aspect may be less important too. Your minimum 6% yield sounds a bit lean to me. If interest rates returned to 6%, and you have borrowed 70% of the money, you would probably be into negative cashflow once maintenance costs and other expenses are covered. Especially if you were paying for management.

 

If you plan on holding the property long-term and aren’t too bothered about refinancing soon, you might be better to focus on higher yielding property even if the discount was less.

 

I think you already know about my investigations into property sourcers! There are a few good ones but many (most?) are chancers or even crooks.

 

Regarding your first post about finding good estate agents, I find that for buying purposes, rubbish agents are great! The properties are often poorly marketed, they don’t necessarily know the true value if they don’t study the comparables properly, and they miss things that you can spot. Sometimes the key to getting a deal is seeing something about a property, some potential, that everyone else has missed. I’ve done this myself, it works a treat, but they don’t come along very often and it takes time to look.

 

Rich

Lisa:

Glenn this product is a max of 70% LTV both upon purchase and subsequent refinance so unlikely you'll pull out all your cash especially as it must be used where you're actually doing works on the property not simply for buying BMV.

But still a cracking product if used right.

Incidentally my next article in Februarys Your Property Network magazine is on this very topic; how to find BMV properties.

Lisa
lisa@keys-mortgages.com

 

 

So lisa, would the 2nd advance be 70% of the difference of the B4 + after valuations or 70% of the after valuation.

ie 

property value 130K

pp 100K

70% of pp  = I put in 30K

quick do up + valuation now £135K

diff in valuations = £5K so 70% = £3.5K I still have £26.5K left in 

or

70% of 135K = 95K so I now only have £5K left in

If its the 2nd option, would a lick of paint + some new floor coverings count as a refurbishment ?

 I hope this makes sense.

Hi Eric, it's your second example with some caveats. When the property is first valued the Valuer will be aware of your intention to refurb and will be asked to do a reinspection upon completion. It will be expected that you have genuinely added value but not necessarily the full amount. So if you've spent £15k and want to pull out £25k and the Valuer backs it up then you'll probably be fine. However a lick of paint and a changed loo seat to get the money back out of a typical BMV isn't going to hack it. You can pull out up to £25k as long as it's not above 70% LTV and the rental coverage is still there. PM if you want to talk through a deal. Lisa