Ramnik

Think I probabaly asked this before been busy building my HMO's so forgive me..can you highlight your approach/proceedure if you are going to take an option on the property . I don't want to tie up funds so the option route I think my best way of trading the deals I come across..Ta again.

Kim

Hi Kim -

An article I wrote demonstrates what you wish to know above. Please send me your email address and I will fire it over.

Thanks.

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Hi Ramnik its kimcoh@hotmail.co.uk

Cheers .

Kim

Hi just wanted to say your not a property trader your a property magician weldone you have a positive out come on most people Keep those deals coming every time you post something I have to read it because it gives me a burst of energy and I'd thrive to do to work even harder thanks once again

Could you send a copy to me as well please Ramnik?

Jonbieri@potential2property.com

P.S no need to ask if all is well, with deals like that!

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Jon Bieri
The Potential2 Group (Lettings, Sales,Quick Sales, Portfolio build,Help for 1st Time Buyers)

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Hopefully I am not getting ahead of myself but the power of a short term option has enabled me to make substantial profits without the need of owning a property.

- £5,000 option fee paid (dont mess about with the house for a pound brigade!!) *Big Tip.
- I have right to buy at 90k.
- 6 month option period
- I have taken Power of Attorney
- 3 (hungry) local estate agents engaged ... again.
- Sale agreed last week at 120k.

£30,000 (potential) gross profit in a 3 month period for a 5k investment. I am sure Gerry can do the maths again for us!

The underlying message here:
- be creative
- show commitment (large upfront option fees).
- understand you vendors needs

Keep positive folks. Deals are about in there abundance.

(once completed, I will tell you the story and the circumstances in detail).

Keep well everybody.

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well done ramnik,

if you had not sold after the 6 months ( or coming up to ), what are your options? Have you ever had to take a hit on your option fee?

Thanks

Danny

Hi Danny -

Thanks and good questions.

If I have not sold the unit after 6 months then technically I forfeit my option fee and the vendor has no further obligations to deal with me. However, I will not let that happen and I will buy it as its a great deal at 90k. All deals should have at least a couple of exit strategies.

So far I have been fortunate and not had to take a hit on an option fee. I almost took a £7,000 hit but managed to recover the deal.

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Excellent stuff Ramnik....it's good of you to share your experiences and inspire us. I'm motivated and raring to go!!

Hope to speak soon, take care

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Nice one. Looking forward to the further details.

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North Manchester letting agents, property traders, houses bought for cash, finders fees paid,mike@brentwoodinvestments.co.uk

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Hi Ramnik long time, how are ya?

Any chance you can forward that report to me sold@chasepropertybuyers.com

Cheers mate
Ben

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Ben & Chelle

'This time, like all times, is a very good one, if we know what to do with it...' - Ralph Waldo Emerson

www.ChasePropertyBuyers.co.uk

Hi Ramnik

Without tempting fate, well done!

Can I ask how you get the EA's to work together? I tried that but they were all saying only us or not at all!

Have you any experience of advertising yourself on Rightmove, or is this not recommended?

Sam

Ramnik,

I entirely agree with what you are saying. I did exactly that on a purchase in 2008. There is a big difference in psychology of the seller between saying "I'll give you a pound" and saying "I'll send £5K to your solicitor, and if I haven't bought it by sillymonth, you can keep the money".

This is akin to an option deal in the currency market, or indeed any option. It is, after all, called an option. At the time I did this, I had the cash to buy outright, as I am sure you have, but it doesn't mean that this is the best thing to do with your cash. It is always better to conserve that cash.

About risk that others have mentioned, there is no business without risk. For anyone familiar with risk management, it's likelihood, impact and mitigation. If you can mitigate by having the capacity to buy for cash, that really is a bit of a no brainer. Well done, and thank you for sharing.

BTW, your ROIC, if settled within the full six months is about £30K minus the £5K minus the selling fees (say another £2K) = £23K from £5K over six months. Approximately £23K x 2 / £5K = 920% per annum

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Estate Agents here in Northampton are quite happy to go down the multi-agent route however they do charge a tad more though. I just give them a set of keys each and away they go to market the property and I just wait for the offers to come in.

I have not advertised myself on Rightmove however I know some Tycoons here do. Its not for me as I like to get EAs involved as they are better at selling houses than me! Engage the right people to do the right job as its an effective use of time.

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