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Also, the higher the % BMV claimed, the more unlikely I feel the claims to be. If you follow that link and go right to the last page of a very long discussion, there is a post by Mark I'Anson. No flies on Mark. He states quite clearly that he can't provide deals at 30+% because if he found them, he would be taking them himself. Frankly, except in very particular circumstances, he'd be daft not to. That's why I find these claims hard to believe. But I'd be delighted to be proven wrong! That's why I made my offer on that discussion, but no-one has managed it yet (GENUINE 30+% deal within 100 miles or thereabouts of Bristol). 

Rich

Hi Chaps

John, yes I would have described flipping as Rich did above,and I would also agree that the vast majority of BMV deals aren't really that far below current market value ( whatever that is!)when you add in all the costs associated with them. The term used above by Julian of " irrevocable authorities" is one I've not heard of before, Im assuming that means some kind of option or Trust deed?

Julian is quite well connected due to hos pairing with Stuart when they used to run networking events. I would have thought Julian should be able to flp those types of deals without having to resort to putting ads on forum.

Roberta

Twitter @RobertaWard

My Property Mentor

Rich,

I would say that in the US options are rarely used when flipping a deal. There is no need to set up an option to gain control or a property. Just making an offer means the property is under contract (close to or equal to exchange in England/Wales).

Buying to sell where you never take title is more or less the definition from the US. How are you using the term that is different? I would expect all deals sourced by one investor but purchased by someone else (investor or retail buyer) is going to be a flip.

John Corey

www.ChelseaPrivateEquity.com/blog

Follow me on Twitter-> www.twitter.com/john_corey 

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John,

 

I’d heard that the law in the US was different and somewhat more amenable to ‘flipping’, but I hadn’t realised it was that different!

 

I think most people who are seriously involved in UK property know what it means here so I’m surprised you are asking. Essentially it means taking control of a property in order to sell the deal on at a profit. For legal and cultural reasons, in the UK this usually does involve taking title. That is changing in a minority of cases as option agreements become more familiar. However the ongoing abuse which is taking place may soon attract attention from TPTB and get regulated into oblivion. But that’s another discussion.

 

Rich

Scott,

Your colleague Edwin is discussing our BMV's with my colleague Tom.

With regards as to why I don't take the deals, the answer is simple. I charge a fee for the service I provide therefore it would not be ethical to 'cherry pick' the best deals for myself.

Whether you believe in the discounts, the products or the service, I have a bank of very happy clients who will continue to get great deals at fantastic prices.

If you want to find out a little more about how I work, drop me a line or send me a message.

Just to clarify, I have never run an event with Stuart, I did run the Brighton and Hove property event for a couple of months though.

I am also very well connnected

 

Rich,

Why do many of your posts have formatting problems yet not all of them do? Something seems to be different with some posts vs. others.

You wrote: "If it was a GENUINE 45% discount I'd expect you to make a MUCH better income stream by flipping properties."

That statement is what made me ask what you meant by flipping. I view everyone who sources as someone who flips. They are selling on something for a quick return rather than take title, do a bit of work and then sell on. Flipping (sometimes called wholesaling in the US) tends to mean selling before taking title.

People who take title and then sell for a higher price normally end up doing some work so they can achieve a better price. There are a lot of costs associated with buying and selling so there tends to be a real need to force up the value through a change of us, remodeling or some other form of 'forced' equity.

 

Bottom line is I wanted to know how you were using the term so I could figure out what you meant by your statement.

John Corey 

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M

Julian, I don't think there would be anything unethical about 'cherry picking' the best deals for yourself. Why? It just sounds like good business to me, you'd be daft not to. If you are going to the trouble and expense of sourcing the deals then surely that is your prerogative.

Only last weekend I was offered a deal by an investor who I regard as one of the most ethical people in property. This person was selling it on as there wasn't quite enough of a margin in it to meet their criteria. As it happened it didn't suit me either, but someone else snapped it up. If the buyer is fully aware of all the facts, they have the choice to take it or not. Nothing unethical about that.

Rich

Morning Rich,

Good point, but personally I feel that if I take a fee, my clients get the option first.

I'm happy working on that basis.

Julian