Thanks for your replies gents and for your interest. As requested, I would be pleased to tell you more ...
The raw lead was generated via a property sourcer that I know well. They initially spoke to the seller and invited me to come with them to visit the property and too meet the elderly vendor.
The inclination via that first phone call was that the seller wanted a quick sale ie 2 weeks and therefore my services were required! :-)
The sourcer and I visited the property, met the vendor and got an understanding of what he wanted and what his prime motivation was. We understood his situation, we suggested that we could genuinely help and would be keen on making an offer as we were local and understood the market conditions.
Once again (this is a very common theme on the deals that I am presently doing), the o/s mortgage was only £8k, so plenty of equity in the property and there no other secured debt.
The vendor did
not live in the property and it required a refurb (5k-7k) and was totally full of his belongings. I suggested ideally the property would have to be cleared before I buy it but it was not neccessary if it caused the vendor any discomfort or inconvenience. This gained me a few brownie points!
He wanted 70k for his property, I suggested 60k and the key thing being was demonstrating
PROOF OF FUNDS. I have done this before and it works an absolute treat. It shows that you are serious, credible and it gives the
certainty that our vendors want.
I did not bother with any searches, nor
RICS survey and proceeded with the sale which was concluded within the timescales that was requested.
Properties in the street would fetch a sale price of circa 90k-100k done up to a lettable standard in my opinion.
My exit strategy (or disposal of stock) was very simple and logical; engage 3 local, hungry estate agents and let them fight it out. I did pay 2k plus VAT for the privilege though. The reason for the multi agency route was that I wanted to create competition, I did not want to be tied down to one agent and I did not mind paying the extra. Its all about getting your capital back out with some profit and getting a good rate of return. (I have not worked out the annualised rate; where's Gerry when you need him!!)
It was marketed at £86,995 and I accepted £82,500 from a cash buyer. The buyer remortaged another property to buy mine so thankfully I was not subject to any complications with the CML guideline of 6 months.
So the trick is (as Mike suggests - nice deal yourself by the way), buy it right and sell it right i.e. leave something in it for your onward buyer.
If anyone needs any further clarification or has any more questions, please fire away.
Good luck folks.
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