Normal
0
false
false
false
MicrosoftInternetExplorer4
st1\:*{behavior:url(#ieooui) }
/* Style Definitions */
table.MsoNormalTable
{mso-style-name:"Table Normal";
mso-tstyle-rowband-size:0;
mso-tstyle-colband-size:0;
mso-style-noshow:yes;
mso-style-parent:"";
mso-padding-alt:0cm 5.4pt 0cm 5.4pt;
mso-para-margin:0cm;
mso-para-margin-bottom:.0001pt;
mso-pagination:widow-orphan;
font-size:10.0pt;
font-family:"Times New Roman";
mso-ansi-language:#0400;
mso-fareast-language:#0400;
mso-bidi-language:#0400;}
x
Hi Ian, you may have seen my discussion at http://www.singingpig.co.uk/forums/thread/1001506.aspx
Anyone considering buying deals or leads from BMV sourcing
companies should first read IMHO. It shows the good, the bad and the ugly. I
found it quite an education!
Anyway, I’m now working with an investor in South Wales who has built up a portfolio of 70 properties
over 20 years, and no longer wants to buy more. His contacts are all still in
place and he can access the best deals, as well as having masterful
street-by-street local knowledge about which areas offer the best opportunities
for high-yielding lets, with long-term tenants and without the hassles of high
crime, mattresses in front gardens or the usual city blights causing frequent
long voids. Many of the properties are repossessions. With such high yields
these are low-value properties and most let very easily to mainly LHA tenants. In
these areas the tenants are primarily families with connections to the area,
who stay a long time and make it their home. As such my source has had tenants
who phone him to ask if THEY can replace the carpets, or if THEY can repair the
fence! How many of us would love to have tenants like that! Because families
are the main tenants, two-bed houses may be too small, as many larger ones
exist which cater for families better. Plenty of 3 and 4 bed houses are
available which still offer great yields.
The areas suffer from high unemployment. On the plus side
this means that skilled tradesmen will work for little more than half what they
charge here in prosperous Bristol,
which makes any refurb work very cheap. We have access to the best tradesmen
and can negotiate the best rates for any work needed. The areas are low-income
but have a strong senses of community (my source knows many of the families
personally), the streets are tidy and crime is low. Some of the surrounding
landscapes are also exceptionally beautiful.
Unlike most BMV deal suppliers, NO FEE IS
PAYABLE UNTIL COMPLETION. There is NO RISK to you or your clients until you are
entirely happy with the purchase, and it completes. We have a standard fee of
£4,000 but I’d urge any buyer not to focus on the fee, but on how the deal
stacks up as a whole with all costs added in. This is not get-rich-quick (GRQ)
so consideration should be paid to the exceptional rental yields (I have seen a
genuine 12% yield for a property with an existing long-term tenant who has been
there for 12 years). The fee also includes managing any refurb if necessary,
and finding the first tenant if necessary. As a bit of value-added, I’m going
to throw in a freebie for anyone SERIOUS about doing business with us. They
might pay thousands of pounds to an over-priced property course for these
‘secrets’, which is in fact very basic information. I’ll be happy to walk any
less experienced investor through the due diligence process, including analysis
of the LR data, calculating gross and net yields, assessing Open Market Value
(OMV) and rentability. I stress this is only if they are serious about
investing with us, but there’s no obligation to buy. I’ll also visit the
property with them to give a full and unbiased opinion of its condition and the
likely cost of any refurb. I have 30 years experience as a builder (see my blog
in my sig. below my name).
I know the cynical may accuse me of not being disinterested
in any assessment, but I’m probably the third most prolific poster on http://propertytribes.ning.com/forum/
as well as doing a fair bit of posting on here, and writing a monthly feature
in Your Property Network magazine. My online reputation is worth far more to me
than a few quid in commission. I have to play the long game so I won’t give you
or anyone else any B.S.
We can also arrange finance DIP in-house or you can go to
your own broker if you prefer.
We have a sample testimonial at:
http://www.theinvestmentpropertyclub.co.uk/content_view.asp?id=983&t=mb
I think that says it all really!
Rich
URGENT! We also have a GENUINE 22% BMV, 8.5% gross yield, in
Port Talbot.
This property sold in 2006 for £100K and we currently think
it is worth approximately £90k as prices have been creeping back up in the
area. It could be let as it is, but has the possibility for more uplift with
£8K worth of alterations and a light refurb. We can get it for £70K but we need
to be quick. Market rent £500 p/cm.
All the best to you,
Rich
Main contractor/ developer. Bristol/ Bath/ Shepton Mallet triangle. New-build, conversion, renovation.