Heavy Going

Heavy Going

Some deals just flow while others can be very hard work. Every deal is different and every person has a different perception of what is good for them. The best deals come when both sides see the win/win scenario. It’s not always possible to explain things to people as a little knowledge can be a dangerous thing. Recently we’ve been negotiating with a family who want to move North. They are on a time limit to start new schools in September. We’ve offered them what appears from our angle to be a very favourable deal, they just can’t see the potential of our offer no matter how we explain it. Sometimes people will search out the negative rather than appreciate the positive. Regrettably we can’t help everyone every time.

The move South for me is proving to be a valuable lesson. There are opportunities at every turn but likewise there are savvy investors scrambling for the best deals. We’ve turned up a sweet house in Winchester. A four bed detached in half an acre on the edge of what must be one of Britain’s most beautiful cities. Market price in the region of £365,000 the owners have already moved out into their overseas property and the house is now becoming a burden. This is an ideal situation for us particularly as the house is in the catchment area of the country’s finest schools so he chances of moving it on swiftly or even before we have completed the purchase is enhanced. We take the property, find a tenant buyer and it’s a three way win.

Let’s just look a little deeper into the detail of how that should work. Firstly we negotiate with the present owner to have the right to buy but not the obligation. This means that if there is a major problem within the time frame agreed, in this case five years, we can hand back the property and only lose the payments we have made to that date. We find a tenant buyer who will come into the property and pay us a deposit and increased rent, part of which in this case comes off the capital sum. We get funding at some point in the future for the tenants to buy the property at a higher pre-agreed price and we pay off the original sum to the previous owners. During the intermediary period we have received additional rent and deposit money and we then purchase at the original price agreed. That’s a simplistic look at arrangements.

Each deal being different means we have to be able to negotiate and adjust our bargaining to suit mainly the vendor but often the purchaser too. The biggest difficulty can be finding a solicitor capable of handling a creative option deal as opposed to your typical family solicitors that only work with last century thinking. There are a number of specialist teams that can do the work without charging exorbitant fees. Contact us for up to date people that can help your property business. Having a team behind you that you can rely on is another important part of being a property investor. These people need to know their own jobs sufficiently well and be efficient enough to make your job easier. You will have enough tails to chase without professionals making matters worse.

Always work with good people to speed up the process.

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