assisted sale

donald delpeache · 27-07-2010, 07:38 PM

Hello Anyone,I think I understand that with an assisted sale you would gift a deposit to the buyer,and possibly cover other costs(survey and legals) to attract a buyer.But how would you control the property and thus collect your fee.Would you draw up some kind of agreement with the seller or would you take out an option in order to control the property.Do you know of anyone who provides this service.Your help would be appreciated.Thanks

Donald Delpeache

Rhys Jones · 28-07-2010, 06:25 AM

My understanding of an assisted sale is when you help the vendors sell their property and then take a share of the profit??

BarcaPete · 28-07-2010, 09:17 AM

Deep and Hanif have put a video together, if you search posts for assisted sales you should come across it, sorry don't have time to give you the link myself.

Labno · 28-07-2010, 09:58 AM

I beleive its almost like a joint venture agreement although an assignable option would do the job?

Andrew de Gruyther · 28-07-2010, 10:19 AM

Hi Donald,
Speak to Manan 0121 777 6329 (ready made deals) he can produce the option to protect your bit of the deal. Just give him the details of the deal and he will do the business.
Hope this helps.
Andy de Gruyther

donald delpeache · 28-07-2010, 02:52 PM

Thanks to you Rhys,Peter,Labno and Andrew for your offerings and advice.I have a vender who is not interested in waiting for his share of any equity;and for what ever reason wants a price close to estate agent market valuation(£190,000).I am thinking that the only way to effect a quick sale is to get him to accept a discount of around 9% that would allow a 5% gift (£9250)to the buyer with legal fees and survey paid(£1750) and give me a profit that amounts to 2%-2.5% of the sale price of £185,000(£4500).That of course is the easy part.I cant see him for a couple of weeks now!And so will have to wait to see if he accepts.Any other sugestions would also be very welcome.

Donald

Suzie 88 · 28-07-2010, 07:26 PM

Hi Donald,

Your strategy sounds good but Is the guy actually 'motivated' to sell quickly? If he's not in a rush (ie; 'wants a price close to EA val') then he's probably not so may not be happy to give you a 9% discount?

I've done an assisted sale but the situation was different: The vendor was in arrears and had a possession order on the property so was in a position to accept a considerable discount.

There was quite a bit of equity in the property so I was able to make a deal with the guy to obtain authority to deal with the mortgage lender and agree a couple of months to sell the property to pay off the mortgage/arrears. The guy just wanted his debt paid off and to rent a flat.

After offering to pay off the guys debt and give him 15% of any profit made on the sale (and pay his legals) I put it on the market with EA at a very attractive price and it sold in 6 days (making a great 12k profit after legal fees)

I did this using an 'Option Agreement' which was all done through Manan at 'Ready Made Deals'. We will be completing on this on August 13th.

This is my first (but hopefully not last!) assisted sale and it's been quite straight forward, apart from the vendor being so laid back that I've had to constantly chase him to sign all the paperwork and send it back (I even fetched him out of a pub at one point and took him home to get the papers signed haha)

Good luck with your guy, let us know how it goes? Why can't you see him for 2 weeks, is he going away (or are you? if so, have a good time!)

Suzie

donald delpeache · 29-07-2010, 07:51 PM

Hello Suzie,many thanks for your reply.Yes he is going away with his children this week and I will be taking care of a friends house(out of town)next week.He said he would call me next week;I hope to make an appointment for the week after when he does.I cant pretend that I know the full story as yet;but It will be interesting from an educational point of veiw if nothing else!He says he has £76,000 approx in the property and an unspecified amount of this is owed to his mother??If indeed he is motivated,it remains to be seen how precisely,and to what degree.He has said that he needs to upsize and he is going to rent??Thanks again,I will keep you posted.

Donald

Rhys Jones · 30-07-2010, 04:57 AM

Quote:

Originally Posted by donald delpeache

Hello Suzie,many thanks for your reply.Yes he is going away with his children this week and I will be taking care of a friends house(out of town)next week.He said he would call me next week;I hope to make an appointment for the week after when he does.I cant pretend that I know the full story as yet;but It will be interesting from an educational point of veiw if nothing else!He says he has £76,000 approx in the property and an unspecified amount of this is owed to his mother??If indeed he is motivated,it remains to be seen how precisely,and to what degree.He has said that he needs to upsize and he is going to rent??Thanks again,I will keep you posted.

Donald

As you say Donald this is all part of the learning curve. I cant stress how important the highlighted part of your quote is. I spend the first 15/20 minutes of any new visit trying to explain why I need to know the whole story so that I can match a product to their needs (ex IFA training!). Its exactly the same with property.

Good luck!

karispirit · 30-07-2010, 08:12 AM

I agree Rhys. Particularly as there's another thread on here where an investor had got to exchange and completion stage and was then told by the vendors solicitor that there was also a second charge loan that had to be repaid which the investor did not know about and it meant the completion could not go ahead after all.

donald delpeache · 30-07-2010, 11:52 AM

Thanks Rhys and Karispirit for the additional input.As you say,the importance of of initiallly gathering sufficient appropriate information is a vital part of the process that was at the forefront of my mind at the time.But the situation was quite hectic at the time,with my hastily prepared and somewhat incomplete list of questions while atempting appear professional and my potential vendor breathing down my neck in order to scrutinise my scribbling;I felt that an early tactical but orderly seeming retreat was necessary,even if I did not get all the information.I was happy just to comlete the mission as I only started leafleting the morning before and already had 2 appointments;my brain needed a rest.

Donald Delpeache

karispirit · 30-07-2010, 03:55 PM

Quote:

.I was happy just to complete the mission as I only started leafleting the morning before and already had 2 appointments;my brain needed a rest.

Hey that's great news. I hope it works out for you. Well done.

Dan LIFE · 05-08-2010, 10:50 AM

Hi all

Read all the comments above and wanted to see if anyone had any paper work they would like to share to see if it may help?
From a couple of discussions (and one with Rhys), maybe an option agreement and also a deed of trust (stating the purchase price and any money over and above that price is either split at certain percentage splits or all goes to you).

Would you mind sharing the agreement Suzie that Manan did for you?

I have attached (hopefully) a copy of an option i use and also a basic deed of trust. Would welcome any feedback on the documents also.

Good luck

cheers

Dan

Suzie 88 · 05-08-2010, 01:37 PM

Hi dan

I can never attach files on here properly!, please PM me your email address and I'll send you the option agreement from Manan.

Best of luck!

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