Tag Archives: Property Sourcer

Case Study – 100% funding – Full transparency Advice, Buy to Let News, Commercial Finance Broker Blog, Financial Advice, Guest Articles, Guest Columns, Landlord News, Latest Articles, Mortgage News, Property Investment News, Property Investment Strategies, Property News, UK Property Forum for Buy to Let Landlords

Case Study - No Money Down - Full transparency

We’ve all heard of those ‘no money down’ schemes (mortgage fraud scams) where a ‘property sourcer’ has negotiated a discount and the buyer and his friendly mortgage salesman gets a mortgage based on the normal market value.  Many were very active in this market, some still are, however ……

….. what is not so widely reported – mainly because the shrewd investors who use the following strategy don’t normally shout about it – is the ‘cross charging’ 100% capital raising process which allows for the full purchase price, refurbishment costs and subsequent buy to let remortgage (if keeping the property) all to be arranged in a transparent and legal process, often all with the same lender.

How do I know about this?

Because we’re doing it, and I have a case study to share with you …

Case Study for a 1st and 2nd Charge combined arrangement

Our client required a deal they couldn’t get via their usual high street lender. He was looking to buy a property, renovate and then take out a BTL based on its new and improved value.

Crucially, and the main issue that nearly caused him to lose this opportunity, is that he was also limited in the cash required to secure this deal, although he had a good level of equity in his main residence.

Our client ideally needed to borrow 100% of the purchase price and 100% of the renovation costs using the equity in his home as additional security. Once renovated he wanted a quick solution in changing the bridging loan into a BTL.

  • Our client owned his residential property with a value of £600k
  • Mortgage outstanding £300k with Halifax
  • Purchase price of the property currently worth £150k
  • Refurbish costs £40,000 – Renovation including new kitchen and bathroom
  • Total borrowing required £190k

The solution?

First, to borrow 75% of the new purchase which gave him £112.5k

Second, the shortfall of £37.5k towards the purchase and the additional £40k needed for the renovation works (£77,500 in total) was raised by adding in the additional security via a 2nd charge on the main residence.

He was actually offered a 2nd charge bridge on his residential property up to 70% LTV, which meant he could, if he wanted to, raise up to £120k from this property (70% = £420k, his existing mortgage is £300k), far more than enough to make up the required difference (£77,500) to cover the full 100% of the purchase and 100% of the renovation costs.

The valuer was booked to attend the property within 72 hours.  In the meantime our client was quick in supplying the shopping list of requirements required and forunately instructed a solicitor who understood the speed required for a bridging loan. The deal was completed within a few weeks enabling our client to ‘do up’ his new property, increasing the value to £300k.

Three months later our client was able to change the bridging loan product to the lenders BTL product, releasing 75% of its new improved value. This released £225,000, enough to pay off the bridging loan and put some money back into his cash flow.

This is the intelligent, new improved, ‘no money down’ style of investing and refurbishing which is helping many savvy investors to add property to their portfolio without laying out any of their own liquid cash.  Instead, they are letting their own existing bricks and mortar do that for them.

We are now very closely associated with a leading and award winning bridging loan / short term lending packager who specialise in these cases.

We have a very simple enquiry / AIP process and as highlighted above, cases can be processed very quickly indeed.  In this case, after 12 weeks of work, our client ended up with another property in his portfolio and also approximately £20k in cash (after fees etc) as well.

Could this be of interest to you?

Contact Howard Reuben

Mortgages, Commercial and Bridging Finance, Life Insurance, Wills, Trusts and LPA's
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How to secure massive discounts from property developers Landlord News, Latest Articles, Property Development, Property Investment Strategies, Property News, Property Sales & Sourcing, Property Sourcing

How to secure massive discounts from property developersJust suppose you were a property developer and you had come to the end of your development or a phase but you are behind target on sales. What if you had say 12 properties to sell within a month, otherwise your funders would not allow you to progress to the next phase. What would you do? Continue reading How to secure massive discounts from property developers


Landlords lose deposits as lenders pull out on completion day Buy to Let News, Landlord News, Latest Articles, Property News

Landlords lose deposits as lenders pull out on completion dayI have heard lots of stories about mortgage lenders withdrawing their mortgage offers on completion day in the last 6 months or so. There is also lots of speculation as to why this might be happening.

One conspiracy theory is that CIFAS departments of mortgage lenders are scouring the internet to build a comprehensive database of unregistered property sourcers, BMV agents etc. including personal names and business names which they then cross reference with mortgage applications. Continue reading Landlords lose deposits as lenders pull out on completion day


Open Letter to The Property Ombudsman – Agents Operating Illegally Buy to Let News, Landlord News, Latest Articles, Property News, Property Sales & Sourcing, Property Sourcing

Dear Property Ombudsman

I am very concerned about the number of readers letters that I receive from both landlords and vendors of properties who feel they have been ripped off by unscrupulous and unlicensed agents calling themselves “Property Sourcers“.

There is very little I can do about this other than offer sympathy as Property118 is neither an arbitrator nor a regulator. Continue reading Open Letter to The Property Ombudsman – Agents Operating Illegally


Guru crash! UK property scams discussed Buy to Let News, Cautionary Tales, Landlord News, Landlords Stories, Latest Articles, Personal Development & Motivation, Property Investment News, Property News

UK Property ScamsWhen it comes to deciding where & how to invest, one of the most vital things a novice investor can do is to become an expert on due diligence and research … not just of potential property deals, but also of people and companies offering portfolio building services, joint ventures, mentoring and deal sourcing.

The property investment world has a seedy & un-regulated under-belly patrolled by wealth creation gurus.   Many novice investors fall prey to their charms and promises of easy riches. Continue reading Guru crash! UK property scams discussed


NAEA warn against use of quick-sell property websites Landlord News, Latest Articles, Property Investment News, Property Market News, Property News, Property Sales & Sourcing, Property Sourcing

According to the NAEA (National Association of Estate Agents) the recession is increasingly leaving desperate sellers vulnerable to quick-sell property companies that offer poor valuations.

The National Association of Estate Agents (NAEA) has reported a sharp rise in the number of property companies offering sellers a quick sale service. The organisation is urging sellers to use common sense, and think through the risks of using this kind of service to sell their home. Continue reading NAEA warn against use of quick-sell property websites


Buy to Let Property Hotspots – Calling All Sales and Letting Agents Buy to Let Property Hotspots, Landlord News, Latest Articles, Lettings & Management, Property Auctions, Property Development, Property Investment News, Property Investment Strategies, Property News, Property Sales & Sourcing, Property Sourcing

We are always very pleased to hear from Sales and Letting Agents up and down the country about what they believe are the Buy to Let Property Hotspots in their area and why. This is the perfect opportunity for agents to share their local knowledge and experience with literally thousands of landlords who may never otherwise hear about them.  Details of how to get involved in this exciting addition to Property118 are towards the bottom of this article.

Having spoken to literally hundreds of landlords and letting agents it is quite clear that everybody has their own definition of Property Hotspots. Continue reading Buy to Let Property Hotspots – Calling All Sales and Letting Agents


Property Due Diligence – Get your ducks in a row landlord's log, UK Property Forum for Buy to Let Landlords

How many property investors do you think are wishing they had done more due diligence before they went ahead and committed to a purchase?

This post is to give you a heads up of where to begin, simply because I meet so many wannabe property investors and new landlords who just don’t know where to start. They often get approached by property sourcers as a result of visiting internet forums, attending a property networking meeting, subscribing to magazines or simply searching the internet. Before they know it their email inboxes get bombarded with offers of property deals advertising massive discounts and fantastic returns. As the seasoned professionals reading this will know, very few of these deals are as good as they might first appear.

My first piece of advice is never to completely trust a person who makes commission or charges fees for introducing property deals to you. Get everything they tell you checked out independently. If you know all the right questions to ask and where to get the answers for free than it’s just a matter of having the time to do it. However, if you are unsure or your time is valuable a great starting point is to invest £29.99 with Experian on a PropertyCheck. They provide 17 page reports for just £29.99 which is a small price to pay prior to investing any more of your valuable time and hard earned money. These reports provide a detailed valuation together with wide information including but not limited to energy usage, carbon emissions, schools, transport, crime, employment, flood areas, local services and a demographic profile of people living in the area such as age range, marital status, income, financial stress, family size, percentage of homeowners etc. As well as being an incredibly useful element of your due diligence process for making purchasing decisions these reports can also provide excellent independent backup to your own marketing information to pass on to prospective tenants.

Continue reading Property Due Diligence – Get your ducks in a row


“The story of a Value Investor” part 2 – The Property Maverick Guest Articles, Guest Columns, Property Investment Strategies, Property Sourcing

Another important factor I like to consider is the “Equity Return on Cash”. Ideally the smaller the deposit, the greater the Equity Return on Cash. Today 15% deposit is almost a thing of the past, 25% deposit is now the norm. Unless its apartment new build and then it’s a whopping 35% deposit. Let’s now look at a financial example for both schools of thought.
Continue reading “The story of a Value Investor” part 2 – The Property Maverick


Backpack firm offers £10,000 fee to property sourcers Latest Articles, Property Investment News

House made from jigsaw pieces

Journeys are looking for more houses

Property investors who can source backpacking youth hostels for a franchise holiday firm can pick up a £10,000 finders fee.

Journeys specialises in budget accommodation for backpackers and runs six hostels in London, Brighton and Kent.

The firm wants to open more hostels across the UK and is seeking properties of 10 bedrooms or more in London, Edinburgh, Cardiff, Oxford, Cambridge, Bath, Manchester, Liverpool, Glasgow, Newquay and the Lake District. Continue reading Backpack firm offers £10,000 fee to property sourcers


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