Daily Archives: January 18, 2017

DIARY OF A PROPERTY INVESTOR – DAY 16

I have seen a nice house in Barrow for sale at £38,000. I know the area and I have a house in that Street.  I go to visit and the condition seems very good for that price. Please find a link to a video I have done that shows you what this property looks like.

This is a Probate Sale and they want a quick exchange from a cash buyer. We can oblige and do. To me this is a real bargain. In my view the Seller might have been better to put this to Auction because I believe it would have gone higher than £38,000.

Many people assume Auctions are for those who want to make a quick sale and are prepared to take a lower price. They think that if the Property was sold by an Agent then it would sell more slowly but you would get a higher price.

I go to a lot of Auctions and buy properties from Agents and I have to say that whilst there is some truth in that it is far from always the case. I have seen properties at Auction go for what I consider to be absurd prices because on that day there is strong demand from a number of Buyers who bid it to high levels. Equally we have purchased great buys like this house in Barrow because the Property is put with an Agent and as one of many on the market has not just attracted the right attention.

I certainly would not assume the best price always comes at an Auction.

There is an interesting dynamic to Auctions and one that I am sure we will come back to in this blog. Anyone looking for high yield properties certainly needs to consider them because what they offer is certainty. You can see all the information about a property in one go. You can go on one day and buy it and be certain it is yours

By contrast buying privately can be a very slow process. Information is released in dribs and drabs. Solicitors can cause delays and you never know when the Seller might change their mind and pull out for all sorts of reasons.

If you are a serious investor you normally have a number of different possible investments and there is nothing more frustrating than picking property A over property B and then 6 weeks down the line losing property A and finding property B has gone elsewhere as well.

But as I say you cannot be too rigid in your thinking because private sales can offer great opportunities. The secret is to get as much information about the reasons for the Sale and who the Seller is and why they are selling. We would be very unlikely for example to buy a property that is in a chain. The risks of breakdown are too great.

Then you need to create a sense of urgency for all parties. Make deadlines and make them seem really important. It is amazing how people respond to that. Rather like new build developers who are expert at making you think you have to act within a certain time or you will lose the deal. We do that here a within two weeks we have exchanged contracts