Seeing and Ceasing

Seeing and Ceasing

We lost a portfolio this week. I had the opportunity to move it on forcool £13K but decided to hold out to help my associates create £40K out of it. It’s often the way in property, time was not on our side and it went to another party. So other than another learning experience we get nothing out of the deal. Now some might think I was being greedy and deserved to lose it but in reality I would have got less from the £40K than I would from the £13K, as the fees would have been split between four rather than me getting the lot. What I was trying to do was help my associates. There would have also been more work for me as the intention would have been to sell on the properties individually to first time buyers.

We have to expect lots of deals to fall simply because it’s a numbers game and there are so many players in the market. However the very same people I was trying to help, apart from the first time buyers of course, are the ones who only two weeks ago were suggesting I stop trying to help so many people for nothing and try to concentrate on making more for myself with them. It seems an ironic situation that when I try to help them, their own lack of ability to close the deal quickly end up with me losing out completely. This could be seen as progress in establishing ways forward as the intention of working with these people is to have the machinery in place for when I’m not around, they’re going to have to do better but ultimately we have to realise that we simply won’t win them all.

A wonderful deal has just come through which is worthy of comment. A seventy nine year old chap has approached me with regards to raising funds against his unencumbered property. He wants a minimum £120K and his great big Victorian semi is worth at least £300k. He wants to pay off some loans, spend some money renovating the house and invest some money too. He’s happy to pay 6% interest on the loan until he dies at which point the property will change hands to the investor. To me it seems like an easy deal to wrap up but, as it’s in Manchester and I’m moving operations to the South of the country I’m not sure I want to tie up that money when in effect I could use those same funds to buy at least ten terraces which would return me far more. It’ll be around for a week or two so contact us if you’re interested.

We’ve got a 1930’s semi on the market. The estate agent said it would never achieve more than £125K as one nearby sold recently for £122K just a few weeks earlier. We said put it up at £140K or available to rent at £750 per month. There wasn’t a single inquiry to rent it and yet the first offer to buy is £130K. The best chances come with the early viewings as it’s new to the market it gets the most attention. With this particular property we wanted the least hassle and, as it’s got a big garden we look for alternatives to save us having to keep up the maintenance. We also put it up as a rent to buy offer and after an initial viewing from this angle we got an offer of £45K down on the full asking price. Now we have a choice and have to decide which one to go with. That’s. not necessarily as simple as it might first appear. The pros and cons of every purchase and sale need to be weighed up carefully.

I missed a beauty in Somerset the other day. I have a fondness for that county as its where my family originate. I was on the computer to accept it within an hour of having word on the deal. I’d lost the guys phone number because my phone lost all its contacts when a supposed techy guy tried to back up the details. That computer hour was too slow as somebody had already got the deal on the phone. That’s the way they are when they’re good, they’re gone quick and you have to be able to cease a deal as soon as you see it. The opportunities abound in property and those with cash are making a killing right now but that doesn’t mean there isn’t a little for everyone.

Always be prepared to cease what you see.

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