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Membership (this page)
Terms and Conditions
As mentioned, our deals have the following characteristics:
Large discount to current market value - typically 20-25% below current market value to you, AFTER our finder's fee. This is typically 35% or more below peak 2006/07 prices.
Low value. We source the lower-to-middle end of the market - as they are easier to 'stack up' for mortgage purposes, and are the type of property that is most easily let. Properties are typically around £90,000 to £100,000 in current market value (in other words, your price will be anywhere from £63,000 to £75,000). Many of our deals are much lower value, we have had several deals under £70,000 current market value. We do also find deals in the £100,000 to £150,000 bracket, and tend to offer them with a higher discount unless there is a further angle to them, such as conversion, HMO potential, etc.
Cashflow positive. 2 and 3 beds in Liverpool can command around £425 - £495 pcm for the former, and £495 - £550 pcm for the latter. With current mortgage rates, you could expect a typical property to be cashflow positive by around £50 - £150 pcm, after management fees.
Rentable types - typically two and three bed terraces and semis. We do get offered newbuild apartments but tend to dismiss them unless they are on a small scheme and are low value and easily let. More expensive or larger properties we tend to offer at increased discount.
Minimal work required. We 'take properties as we find them' - as the vendors tend to be distressed, and in need of an urgent sale, not vendors who have been preparing the property for sale on the open market. However, most require minor cosmetic work and upgrade only and we can manage this for you. Remember - properties are valued by the surveyors in their current state, so any work you do would be likely to pay for itself many times over in terms of 'forced capital appreciation'. Properties with more than a very minor refurb are offered at correspondingly larger discounts - so if you ar prepared to take on fixer-uppers, they will probably be the most profitable in the medium term.
Timescale - most deals complete in 4-6 weeks. We had nailed it down to 3-4 weeks in every deal last Spring, but the lenders have increasingly become more bureaucratic, causing delays in making a full mortgage offer.
How our service works
Standard membership is free and you simply send us your details and get added to a databse. When we have a suitable deal, it gets emailed to the database and we offer it 'first come, first served'. More details on Standard Membership are below this.
You subscribe to an email list, which sends you information on the latest deals as soon as they become available. It is also possible to receive alerts by SMS text message. The emails contain comprehensive information such a property condition, local area info, photographs and expected values, rental assessment, etc. You email or call back, when you see a deal that you want to go for. You have to return an Investor Info form and an Investor Contract (see the Registration section - CLICK HERE) Within 24-48 hours, you will be emailed back to say whether or not you have been successful. We can also provide further info such as sale/sold/rental due diligence reports, other photos and information on the property, etc.If successful, you contact our mortgage brokers for a DIP ('decision in principle' - checking whether you can get mortgage finance). If the DIP is successful and you are happy with the finance plan, you have 24 hours to carry out your own due diligence. If you wish to purchase the property, you must then pay the deal reservation fee, and the broker fee and valuation fee (if any). The property then gets valued by your lender's nominated surveyor. If you choose to have a private valuation first to determine current value, if the property is downvalued below what we expect, we will keep the same % discount to you. The vendors normally agree to this drop beforehand, if not we attempt to chip the price with them. Failing this, our own finder's fee is either reduced or eliminated in order to keep the same % discount. After we pass the valuation hurdle, you will need to assist the brokers and our nominated solicitor by completing all necessary paperwork and swiftly returning it. We will manage the rest and keep you up to date. As completion nears, we can begin to plan whatever refurb or minor cosmetics are required, and even market the property for a tenant. Upon completion, we will ensure the property is fit for completion (no gas boilers or fixtures and fittings robbed etc!), and can transfer the property to a letting agent of your choosing.
Why we are different
Other companies claim to offer 'ready made deals' and 'packaged deals' - but they are usually not the complete service. For one, we specialise in a small geographic area - so we can offer the add-on services we do, have local knowledge and contacts you can take advantage of, provide full due diligence for you, and full control of the deal from start to finish. Other companies source property through mass advertising (usually through internet advertising, where all vendors routinely overvalue their property so they get offered more!), and leads come in from all over the country.
It is impossible to know about all areasf the UK, the viability of predicted market values, never mind actual photos or comprehensive property condition reports - because some bloke has simply contacted them by phone, and 'done the deal' that way. These companies have very little control over the deals - consequently there is a high 'fall through' rate because of this. Normally, the T&Cs of these companies mean that it is you that pays for the privilege of finding out the deal is overvalued, or the vendor has been gazumped by another cashbuyer.
What makes us different is: We concentrate on one geographic area - giving us many strengths and allowing us to provide comprehensive support We provide the most comprehensive information possible, so you can make a confident investment decision We provide numerous add-on services to give the complete 'armchair investing' service We want a longterm relationship with you - helping you build your portfolio Because of our business model and services - it is in our interests to do a very good job for you, so you keep coming back for more!