"Zero Down" Buy to Let Property
27 June 2006
Went 'window shopping' in a few estate agents. One description caught my eye. It was a house of multiple occupancy (HMO) so it was there as an investment. The reason I liked it was becuse the agent had put in the comments that the vendor was looking for a quick sale. In my book quick sale = reduced price sale and reduced price (below market value) = £££ for the buyer!
Anyway, I went in to ask for details and was told that it was gone. I asked if there were any others in the area. The agent had two. they were both much smaller house. Both 2 bed mid terrace. One was at £104,995 the other at £89,950. I ask why the two house were on at such different prices when they were both so similar. Was told that the lower price house had just gone back on the market as a result of a chain break. An offer of £97,000 had fallen through. It was vacant. "Hmm, the vendor must be pretty desparate to sell" I was thinking to myself. I made conversation about the vendor to try and learn more. i asked how long he had owned it for. The agent didn't know but guessed at about five or six years. That told me that he'd probably paid about £40k for it as prices have risen a lot since then. As it was a first time buyers house, my guess was that he'd moved out to something bigger and was carrying the mortgage on this too. This would make him pretty keen to sell but yet he had lots of room to manouver. The perfect situation. I asked to see it as soon as possible. Got an appointment for the next day at lunchtime.
28 June 2006
Saw the house. It was actually in better condition than I thought. One room needed painting nutral colours and Vinyl flooring in the kitchen and it would be perfect. I tried to show a 'poker face' to the estate agent.
Got back to the office and phoned the agents. Put an offer in of £80,000, fully expecting it to be rejected. It was! The vendors exact words can not be given, but shoving £80,000 where he suggested would probably be unwise on medical grounds!
I immediately came back with a revised offer of £82,000 provided the smallest bedroom was repainted in white or off white. The agent went away with the offer. Iwas expecting another 'no way'.
My mobile rang. I saw the esate agent was calling. When I answered it, to my complete surprize and shock the vendor had agreed! This means that the deal should produce £15,000 of instant equity
Went 'window shopping' in a few estate agents. One description caught my eye. It was a house of multiple occupancy (HMO) so it was there as an investment. The reason I liked it was becuse the agent had put in the comments that the vendor was looking for a quick sale. In my book quick sale = reduced price sale and reduced price (below market value) = £££ for the buyer!
Anyway, I went in to ask for details and was told that it was gone. I asked if there were any others in the area. The agent had two. they were both much smaller house. Both 2 bed mid terrace. One was at £104,995 the other at £89,950. I ask why the two house were on at such different prices when they were both so similar. Was told that the lower price house had just gone back on the market as a result of a chain break. An offer of £97,000 had fallen through. It was vacant. "Hmm, the vendor must be pretty desparate to sell" I was thinking to myself. I made conversation about the vendor to try and learn more. i asked how long he had owned it for. The agent didn't know but guessed at about five or six years. That told me that he'd probably paid about £40k for it as prices have risen a lot since then. As it was a first time buyers house, my guess was that he'd moved out to something bigger and was carrying the mortgage on this too. This would make him pretty keen to sell but yet he had lots of room to manouver. The perfect situation. I asked to see it as soon as possible. Got an appointment for the next day at lunchtime.
28 June 2006
Saw the house. It was actually in better condition than I thought. One room needed painting nutral colours and Vinyl flooring in the kitchen and it would be perfect. I tried to show a 'poker face' to the estate agent.
Got back to the office and phoned the agents. Put an offer in of £80,000, fully expecting it to be rejected. It was! The vendors exact words can not be given, but shoving £80,000 where he suggested would probably be unwise on medical grounds!
I immediately came back with a revised offer of £82,000 provided the smallest bedroom was repainted in white or off white. The agent went away with the offer. Iwas expecting another 'no way'.
My mobile rang. I saw the esate agent was calling. When I answered it, to my complete surprize and shock the vendor had agreed! This means that the deal should produce £15,000 of instant equity
posted by Anonymouse at 7:03 AM
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