Idea your thoughts?

Discussion in 'Development' started by kchiggs, Dec 12, 2017.

  1. kchiggs

    kchiggs Member

    Get property for sale on lease option. Bmv. Target London luxury properties. Hire good commission only salesperson pay them a retainer and good condition to flog to hnw indivdual end users at just a few percent below market value so seems like a great deal and flog to them.
     
  2. Longterminvestor

    Longterminvestor Administrator

    Seems like a decent idea especially if you can buy well below market value and create enough profit margin to pay commission and still make a property look cheap to high net worth individuals. All you would need to do is identify the properties, do the deal and let the agents do the rest. I would assume during the confusion surrounding Brexit there will be some interesting opportunities in this area?
     
  3. Longterminvestor

    Longterminvestor Administrator

    Many years ago I had an idea, similar to PFI, to acquire country schools and churches which would eventually be replaced by inner-city establishments. In the short term these properties would be leased back to the council and the church and when they left they would be redeveloped. Never quite got round to it!
     
  4. kchiggs

    kchiggs Member

    My guess is that at each loss of negotiations point the drop in the value of the pound creates the incentive to the overseas investor as long as their is no gazumping (hence off market) and a forward to fix exchange rate. Not massive amount for typical investor. Maybe 70k on a property but if you can turn over 50 a year till the end of brexit negotiations not too shabby.

    That capitalist PFI is clever but only works if you can predict where development is going.
     
  5. nmb

    nmb Well-Known Member

    For the PFI style idea to work you would need to negotiate some kind of planning permission guarantee into the deal (possible if local authority?) so you are not left with a property which cannot be developed. I knew someone who once renovated a chapel and what a beautiful house it turned out to be.
     
  6. kchiggs

    kchiggs Member

    Well would for opp at least In Wales. Hey property lease back then get outlined planning permission.
     
    Last edited: Dec 18, 2017
  7. nmb

    nmb Well-Known Member

    Do you think you will pursue this idea?
     
  8. kchiggs

    kchiggs Member

    Not sure which idea your referring to. For longterminvestor's pfi idea several things would have to come together. For my idea am actively pursuing it now. I have identified properties and lining up salesagents (however it is not possible to get comission only so need funds(just before xmas) for their draw as well as to the the property up the other end. Also no clue re things like AML/KYC prop deal. I really need someone else to come on board and help out.
     
    Last edited: Dec 18, 2017
  9. diyhelp

    diyhelp Active Member

    Are you looking to get a team of investors together? I hear this site has strong connections with a crowd funding platform. Maybe something to consider?
     
  10. kchiggs

    kchiggs Member

    I don't think the amounts required here are large enough to warrant a team of investors. One has already said its too small an amount for them (half is enough for a year salary for me, but I'm not expensive) The pfi idea would fit well with crowd funding, you could also use it to match landlords and tenants. Of course crowdfunding works best when you have the initial pledges before you start the campaign.
     
  11. realdeals

    realdeals Active Member

    Only real problem with the PFI idea, where I presume the property would be rented to the existing tenant until they leave, is planning permission when the property is empty. I doubt any local authority would give a legally binding guarantee of planning permission as was mentioned earlier.
     
  12. kchiggs

    kchiggs Member

    Welsh LAs already have donecso on their outside the rules lax system. (Outline) Permission has been granted on empty land under their laxer system. Scotland has also granted outline permission under crofting comission rules on estates. That's an English (and NI) obstacle not a UK one.


    The real problem is with use it or lose it. Perhaps it could be done via improving the existing facilities in order to qualify for development has begun status.
     
  13. nmb

    nmb Well-Known Member

    I have always wondered why we talk about the UK as one large entity but give differing powers to different areas of the UK. The croft laws in Scotland smell like an attack on the rich to me but I could be wrong :)
     
  14. kchiggs

    kchiggs Member

    I don't know why we don't recgonise the national difftences more in the way the americans do their states. Not quite sure why you think the laws are an attack on the rich? In fact they could possibly make some people very wealthy indeed. Crofts need landowner permission to be created anyway.
     
  15. Longterminvestor

    Longterminvestor Administrator

  16. kchiggs

    kchiggs Member

    For those interested in the original deal information. Investor turned out to be a faker. So is falling apart rapidly.
     
  17. nmb

    nmb Well-Known Member

    Well spotted before it was too late - how did you expose him as fake? What caught your attention with the deal?
     
  18. kchiggs

    kchiggs Member

    Did not have the money. Was not prepared to put it in escrow I suggested (fair enough was transpact.com I know some prefer solicitors, FCS regulated is good enough for me). Could not give me contact details of a solicitor they would deposit funds with. To be fair I think they were more time waster, tyre kickers (yes I am an investor) than actually scammers. If there a millionaire I'm a supermodel. Annoying as it wasn't too late as I already waster a lot of effort. However I don't know how to separate a real investor from a fake without alienating potential real investors prove you have money out it in escrow. Thanks deal wise my attention was timing just before Xmas -great ease quick flip. The discount and the fact that I could access salespeople. If I had the money I'd of done the deal myself and had a nice 90k. For Xmas present. Sadly you need money to make money and I don't have that. So I approach an investor for money for the deal and they don't want to know about chains (fine put the money down we will secure on an option then flog and make money) No option means buyer could find and take us out of the loop. The one investor who was real said the idea was good, but the profit was too small for him,fair enough but we could probably have flipped in a week. Too many sellers chasing buyers agent changing deals.
     
  19. realdeals

    realdeals Active Member

    Any serious investor would not have an issue putting money in Escrow - if either side fails to deliver on their side of the deal then Escrow transaction is closed and deal off. If we didnt have trusted third party escrow companies then we would only deal with people we knew and trusted - not always possible.
     
  20. kchiggs

    kchiggs Member

    Which is how I found out they were not serious. The problem is I was several steps down the road before asking them to put the money in. I don't think asking the investor to put the funds in before I tell them the opportunity is the right tack. How else do you get proof of funds?
     
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