Help/Advise needed - Not the best of situations

Discussion in 'General Property Investment Discussion' started by Timmy78, Jun 22, 2017.

  1. Timmy78

    Timmy78 New Member

    Hi all,

    First post here and I am someone in need of some help/advise.

    Property is something I have always wanted to get involved in, it is something that has interested me since I was a kid. I have approx 20k and can possibly borrow approx 20k from friends and family, the problem is I have no job/income, I have lost my job 2 months ago and would like to do something with my money as job hunting is not going as good as I expected. First time I have lost my job/been out of work in 15 years and it feels like a b*tch.

    Question is, what can I do and what options do I have? I highly doubt I will get any sort of mortgage or finance with no income and I doubt I can borrow anymore money from friends and family. I have been renting for a while and wanted to ideally flip a couple of properties which would help me buy my first home even if the profit is minimal. I would then ideally look at buying a property with a BTL mortgage (with the hopes of finding a job by then) and progress from there.

    Any help or advise would be highly appreciated.
  2. Nicholas Wallwork

    Nicholas Wallwork Editor-in-Chief Staff Member Premium Member

    Hi Timmy, welcome to the Property Forum firstly!

    The good news is you have the following going for you! Let's concentrate on only the positives. Don't bring yourself down with any doubt or negative thoughts.

    1. You have some "survival money", this can keep you going for a good few months and hopefully longer if needed.

    2. You sound like you have the right desire to success. Build on this and turn it into a burning desire, massive drive and determination to succeed and you'll give yourself a solid foundation for success.

    3. Property investment can be successful without ANY of your own capital. The most important thing is having the knowledge, expertise and a great deal! With the right deal sourced you'll make money by either flipping it on, selling it on as an agent, finding a funding " JV" (or joint venture) partner to renovate / build it yourself whilst sharing the profit etc.

    4. You have access to lots of relatively cheap or current completely free education right here! Check out the books section under the "education" menu and read them all! Ask questions and read and search the massive archives of past discussions. We're here to help!

    So you just need YOU, drive ambition and determination and you'll be on your way to gaining the skills you need to create a career in property!

    If you happen to be around Reading, Berkshire and fancy a coffee or some work experience then I'll also personally set you on your way as well.

    For now get reading and learn how to source great deals and finance them with other people's money. Education, education, education is the key right now...

    Good luck and keep us posted!

    Sent from my iPhone using Property Forum
  3. gravityheating

    gravityheating New Member

    You never stated if you currently own a home already. No matter. How about start a Bit Coin Bank? Or use a Rented Property to sell Internet Based Education? Generally the wise move is to look for Growth Areas, then go with that flow. What's in the news at the moment.... There are strange matters going on regarding Grendell Flats, Burnable Cladding & Exploding Fridges.(moderated)
    Last edited by a moderator: Jun 24, 2017
  4. Longterminvestor

    Longterminvestor Active Member

    I agree with Nick's comments. Even if you don't find your JV partner or capital provider in the short term I get the impression you are passionate about finding a job and it won't be too long. This will help kick start you property investment career. Let us know how you get on.
  5. Henna Patel

    Henna Patel Banned

    Hello Timmy78,

    There are many ways for you to get involved in property with minimal effort. If you are struggling to find finance have you considered investing in property development? LandDevelop, for example, only have a minimum investment requirement of £100 per project, so it seems like something that you could perhaps contemplate?

    Kind regards,
  6. nmb

    nmb Well-Known Member

    Hi Henna

    What kind of property investments do you offer?
  7. Henna Patel

    Henna Patel Banned

    Hi NMB,

    We offer investors the chance to invest in property development, in both residential and commercial property. Investors can see a potential 20% return on their investment and we currently have a project in St Albans live on our website.

    Thank you,
  8. Gareth Bain

    Gareth Bain Member Forum Partner

    Hi Timmy,

    First off let me say don't look at losing your job as a bad thing. Look at it as a crossroad to now do whatever you want to do. When you were in your job you would never have just resigned to follow your passion. Find that passion and let that guide you. If your passion is your current line of work then go back. If it is property then I would say pursue that.

    I agree with Nicholas and suggest getting educated. If you only have limited funds it is best to make sure that you know what you are doing to avoid losing money and getting further into trouble. Another option could be to find a mentor in the property industry and ask them to guide you on what to look for and what to avoid.

    I lost my job sometime back and was faced with the same situation as you. I decided that I wanted to merge my passion for property and my past experience. I got myself educated and hired a mentor and now am merging my passion and my expertise.

    However if you would like to invest in property and are looking at high returning development projects, Shojin Property Partners is a crowd funding company specialising in property developments. We have a team of experts who can help you through investing in property and the best thing is that we charge no fees. If you want to find out more, please visit
  9. realdeals

    realdeals Active Member

    Do you have any financial dependants such as a wife or children? This may impact your short term route.

    However, I agree with the comments above, if this is your real passion and you have the desire to succeed then give it a go but try to protect your finances and potential loses. Maybe take it one step at a time with online real estate investment courses or find yourself a mentor. There are many out there only too willing to help.

    I wish you the best of luck.
  10. Timmy78

    Timmy78 New Member

    Hi all,

    Sorry for the late response.

    I am currently renting with my wife and 2 children.

    I have been reading and researching before I joined this forum. My initial 40K pot has now been reduced to 30K as a friend brought a car and has no funds to borrow. I have seen a property at auction with a guide price of 25K, I have not seen the property yet but have been told by the local agent the property will need approx 5K spent on it. I have searched properties in the area and they're going for all sorts of prices from 30K to 90K.

    Once I have seen, brought and carried out any work needed (as long as I win at auction) I will be aiming for a sale price of 70K-ish, this will allow for a reductions via negotiations. However there is a property nearby that was advertised in January for 85K and has now reduced to 75K but still has not sold. I don't know but am getting the impression residents would rather rent than buy in the local area.

    I am edging towards bridging to help cover costs but have no quotes as of yet for a period of approx 12 months, this should allow enough time for a sale.

    However I am let with a couple of problems.

    1. I haven't figured out how to find local tradesmen near to the property. This will present a problem as I will need someone to help me calculate costs of any repairs/work that needs to be done aswell as doing the work

    2. A local solicitor has quoted me just under 3K costs to buy & sell a property under 100K. This seems a little high and would like quotes from others

    3. I am yet to find a finance broker and don't really want to approach the first company I google as a broker could advise aswell as find the best fit for you

    4. I don't mind if I make a minimum of 7.5k profit on the property but worried it will not sell. A little scared as it will be my first investment and have everything to lose.

    Can anyone please offer any advise/recommendations?
  11. nmb

    nmb Well-Known Member

    In my view these figures seem a little tight, 25k + 5k, what happens if your are over budget by a couple of grand? You will also need to factor in the chance that a sale may take a while to conclude or you may be left with the property in the long term. Renting seems like a sensible back-up plan? A bridging loan can be expensive if you were not able to resell the property in the short term and pay off the loan.

    I am not saying this is not possible but there seem to be a few issues to work out before you commit?
  12. Timmy78

    Timmy78 New Member

    I was thinking of placing the property on the market using local agents for approx 2-3 months, if no joy I have the option to pop the property back into an auction, yes this will lower my profit but will release the funds once sold.
  13. Gareth Bain

    Gareth Bain Member Forum Partner

    Auctions can be tricky. Considering this is your first property and I am assuming you have never purchased through an auction before there are a few things to be mindful of. Have you seen the property (peeked your head through the window at least) or chatted to the neighbours? Do you know what the extent of works needs to be done to the property? Have you asked for professional advice? Have you built in a healthy contingency?

    The price which they have provided is a guide prices. It is very important that you have an agreed walk away price in your head where the property no longer makes business sense. Be strict with yourself and make sure you walk away if it goes over that amount.

    As NMB said if anything goes wrong or costs more you might need to dip into your contingency. In terms of bridge funding, it usually costs about 1% per month for a duration of 12 months.

    I have never purchased a property through the auction because of the risk association. That is not to say that you can not pick up a bargain if you know how. My advice would be to do as much research on the property, the area, costings and future market predictions before committing yourself to this property.

    Best of luck and let us know what decision you make.
  14. diyhelp

    diyhelp Active Member

    Just be aware that the longer a property remains unsold the more interest on loans, etc. This can very quickly eat into your profit. Have you not considered renting the property out if the figures stack up?
  15. Gina Lancaster

    Gina Lancaster New Member Forum Partner

    Hi! We are a friendly and service oriented finance broker who strive to help find solutions for people at the lowest rates. It would be great to speak to you in more detail as we would love to help. My number is 07841 016596 or email me on [email protected] (There are no upfront fees either)

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