You are a winner justin..unlike the seller who either he completely under valued his own property or the final buyer who completely over paid...most likely both got partially bad deals
Understand why you might think that, but honestly the owner was happy to shift the house and perhaps undervalued it a touch. The buyer has got a decent property now worth £120k and he paid £90k. Transactions like this happen at volume in the UK. Motivated sellers, and buyers not looking for crazy numbers, but just wanted good and quick investments. I see it regularly because we do a lot of sourcing of properties. 🤝
Pertinent q - is there an ideal loan to value below which you do not want to fall to de risk in a variety of market conditions to improve financial durability long term?
Good q! Short term I am focused on growth and leveraging in order to speed up that growth, and I see that being the first 10 years of my investment journey. Long term, plan is to pay down debt over the following decade and rebalance portfolio at 50% LTV. Upon retirement I will then, sell off my worse performing assets to repay debt on the good assets that I retain.
if i already have money released on a btl and remortgage to pull more money out as its gained in value, is this a separate mortgage? Or is it still the 1 mortgage?
if you remortgage to pull more money out on your btl it will still remain on 1 mortgage example your current BTL is with HSBC debt 250k now Barclays has valued your house at 350k from the 350k you will pay hsbc theyr money back of 250k out of the 100k you will have to leave some equity and the rest you can pull out, to answer your question it will still be one mortgage
I don’t understand the figures quoted in this video. You sold the property on for £90k and said £25k was needed to refurbish.,so buyer would spend £115K on property which you say would be worth £120k if I understand you. With costs on top how does that work for buyer?
Refurb could have been done for less than the £25k as a buy-to-let, I was over estimating refurb based on flipping it in a higher standard condition. Where as the deal would have been about £20k left in for the next investor looking to do BRR, with a lower refurb. In the end the investor actually decided to keep it unencumbered and in their portfolio. Everyone has different goals and metrics for their portfolio :)
I have been doing viewings after viewings for a quite long time and I can tell that I have never get a deal from agent. For 99% of the time they were unprofesional, don't know the answers for the simple questions regarding property condition. They usually call me with a property which was on the market for a long time and nobody want to buy it from price that they listed. Example: Renovated houses sold in area for 150k Renovations cost at the time circa 30k They asking price 145k They don't want to negotiate. They don't want to connect me with a vendor to talk about a price and I really can tell that agencies are total waste of time to work with. My questions is: How did you agreed a sale for 65k for a property worth 90k. The seller is stupid or is your relative. Other then that why he or she wants to bin it 25k profit so they can just wait for another buyer. I can understand situation where you are adding a value to a property and generate that profit somehow. But this case? It is really hard to believe.
I've negotiated in the region of 25-30% off of nearly every property I've bought (except 2 houses). Please take this as constructive feedback - if you are not finding any agents that will help you / bring you properties, then you to look at what questions you are asking, what you are doing to build a relationship, and who you are speaking too. Whilst I will agree with you that a large percentage don't know answers to questions, can be difficult to work with, there are some awesome agents out there! Re direct to vendor communication. An estate agent is never going to facilitate that, because it cuts them out of the deal. If you want direct to vendor communication, then you need to be sending out letters, knocking on doors, running ads to find these type of people. The gentlemen that sold me his properties cheap wasn't stupid, and he certainly wasn't a relative... he was desperate to sell quickly and wanted to get out of property. Simple as that. For the same reason that people sell cars at WeBuyAnyCar for a discount, and the same reason that people pay the premium price of £4.70 for a Starbucks coffee instead of an instant coffee. People sell cheap for convenience and to remove pain/stress, and people pay a premium for convenience if it means getting a better product quickly. Its hard to believe if you've never done it, or seen it happen. But there is literally hundreds of investors like me out there buying cheap properties. Instead of questioning whether it happens, I'd recommend learning how to and putting more effort in. Hope that helps and thanks for watching! Justin
With this property market, there is no way you could purchase a property at £65k and sell it for £90k without adding any VALUE to the property. It is a HUGE difference for nothing. Not realistic number in the UK anywhere
Very inaccurate comment I’m afraid. In all markets (including the current one) I see a plenty of deals like this. Are they rare or hard to find? Yes, but do lots of these transactions happen, also yes. There are always owners of properties in unique situations that require them to sell quickly. They won’t be sitting on the right move - but they are out there
I want to believe this as I am preparing to invest in property business. But research and statistics really don’t give such figures. My plan is to buy properties needing light refurb work, add value and then sell it for £90k. Then I can believe it. I appreciate your time and reply, but really I can’t convince myself to believe the profit of £25k for just buying and selling. I would love to know more of how to find those properties and how to get this deals done. Thanks mate.
I am a property developer and have been for the past 20 years. I can tell you now this is mostly bullshit..... in fact what I see on youtube related to property is mostly bullshit. Makes me laugh
Lol, I call BS on your experience. A) what I share in this video is completely true and achievable, I’ve been doing this several years now and repeat it regularly. B) an actual property developer of 20 years is unlikely to watch this. I’m guessing you live in your parents basement - prove me wrong 😂
While I appreciate his intentions, these videos by the author and similar UA-camrs like Samuel Leeds often resemble get-rich-quick schemes. It's important to highlight and consider the risks and speculative nature of such strategies.
Keep moving forward. Your doing really well. Tip, never compare yourself to others or put them down and you will go far.
Appreciate it, thanks 🤝
Thanks for sharing those insights - have only ventured as far as buying the first property so far need to take it up a notch!
Great that you’ve got started, so keep moving forward and thinking long term 🙌
You are a winner justin..unlike the seller who either he completely under valued his own property or the final buyer who completely over paid...most likely both got partially bad deals
Understand why you might think that, but honestly the owner was happy to shift the house and perhaps undervalued it a touch. The buyer has got a decent property now worth £120k and he paid £90k.
Transactions like this happen at volume in the UK. Motivated sellers, and buyers not looking for crazy numbers, but just wanted good and quick investments. I see it regularly because we do a lot of sourcing of properties. 🤝
Pertinent q - is there an ideal loan to value below which you do not want to fall to de risk in a variety of market conditions to improve financial durability long term?
Good q! Short term I am focused on growth and leveraging in order to speed up that growth, and I see that being the first 10 years of my investment journey. Long term, plan is to pay down debt over the following decade and rebalance portfolio at 50% LTV. Upon retirement I will then, sell off my worse performing assets to repay debt on the good assets that I retain.
Thanks for sharing. Isn't stamp duty payable above £250k?
For your own residence correct, but for second homes or investment properties, stamp duty starts at 3% from £0
What about capital gain from selling the property ?
What are you the HMRC 😅. Haha yes I did pay tax on the sale, absolutely right.
if i already have money released on a btl and remortgage to pull more money out as its gained in value, is this a separate mortgage? Or is it still the 1 mortgage?
if you remortgage to pull more money out on your btl it will still remain on 1 mortgage
example
your current BTL is with HSBC debt 250k now Barclays has valued your house at 350k
from the 350k you will pay hsbc theyr money back of 250k
out of the 100k you will have to leave some equity and the rest you can pull out, to answer your question it will still be one mortgage
@@nijhussain273 thank you.
I don’t understand the figures quoted in this video. You sold the property on for £90k and said £25k was needed to refurbish.,so buyer would spend £115K on property which you say would be worth £120k if I understand you. With costs on top how does that work for buyer?
Refurb could have been done for less than the £25k as a buy-to-let, I was over estimating refurb based on flipping it in a higher standard condition. Where as the deal would have been about £20k left in for the next investor looking to do BRR, with a lower refurb. In the end the investor actually decided to keep it unencumbered and in their portfolio. Everyone has different goals and metrics for their portfolio :)
I have been doing viewings after viewings for a quite long time and I can tell that I have never get a deal from agent.
For 99% of the time they were unprofesional, don't know the answers for the simple questions regarding property condition.
They usually call me with a property which was on the market for a long time and nobody want to buy it from price that they listed.
Example:
Renovated houses sold in area for 150k
Renovations cost at the time circa 30k
They asking price 145k
They don't want to negotiate.
They don't want to connect me with a vendor to talk about a price and I really can tell that agencies are total waste of time to work with.
My questions is:
How did you agreed a sale for 65k for a property worth 90k.
The seller is stupid or is your relative. Other then that why he or she wants to bin it 25k profit so they can just wait for another buyer.
I can understand situation where you are adding a value to a property and generate that profit somehow.
But this case?
It is really hard to believe.
I've negotiated in the region of 25-30% off of nearly every property I've bought (except 2 houses). Please take this as constructive feedback - if you are not finding any agents that will help you / bring you properties, then you to look at what questions you are asking, what you are doing to build a relationship, and who you are speaking too. Whilst I will agree with you that a large percentage don't know answers to questions, can be difficult to work with, there are some awesome agents out there!
Re direct to vendor communication. An estate agent is never going to facilitate that, because it cuts them out of the deal. If you want direct to vendor communication, then you need to be sending out letters, knocking on doors, running ads to find these type of people.
The gentlemen that sold me his properties cheap wasn't stupid, and he certainly wasn't a relative... he was desperate to sell quickly and wanted to get out of property. Simple as that.
For the same reason that people sell cars at WeBuyAnyCar for a discount, and the same reason that people pay the premium price of £4.70 for a Starbucks coffee instead of an instant coffee. People sell cheap for convenience and to remove pain/stress, and people pay a premium for convenience if it means getting a better product quickly.
Its hard to believe if you've never done it, or seen it happen. But there is literally hundreds of investors like me out there buying cheap properties. Instead of questioning whether it happens, I'd recommend learning how to and putting more effort in. Hope that helps and thanks for watching! Justin
The guy who bought it at 90K must be naive, is not it? 90K + 25K on refurb for an end value of 120K for him?
With this property market, there is no way you could purchase a property at £65k and sell it for £90k without adding any VALUE to the property. It is a HUGE difference for nothing. Not realistic number in the UK anywhere
Very inaccurate comment I’m afraid. In all markets (including the current one) I see a plenty of deals like this. Are they rare or hard to find? Yes, but do lots of these transactions happen, also yes. There are always owners of properties in unique situations that require them to sell quickly. They won’t be sitting on the right move - but they are out there
I want to believe this as I am preparing to invest in property business. But research and statistics really don’t give such figures. My plan is to buy properties needing light refurb work, add value and then sell it for £90k. Then I can believe it. I appreciate your time and reply, but really I can’t convince myself to believe the profit of £25k for just buying and selling. I would love to know more of how to find those properties and how to get this deals done. Thanks mate.
❤
Don't bother under Labour...
Know the feeling, but I’m not changing my investment plans. Keep moving forward and keep up to date with changes!
I am a property developer and have been for the past 20 years.
I can tell you now this is mostly bullshit..... in fact what I see on youtube related to property is mostly bullshit. Makes me laugh
Lol, I call BS on your experience.
A) what I share in this video is completely true and achievable, I’ve been doing this several years now and repeat it regularly.
B) an actual property developer of 20 years is unlikely to watch this. I’m guessing you live in your parents basement - prove me wrong 😂
@@JustinWilkins😆
While I appreciate his intentions, these videos by the author and similar UA-camrs like Samuel Leeds often resemble get-rich-quick schemes. It's important to highlight and consider the risks and speculative nature of such strategies.
Agreed. Lots of potential risks.
But don’t agree that I fall under a similar category to Samuel Leeds 😂