JamesSouthend Posted October 16, 2017 Report Share Posted October 16, 2017 Hi, not sure if this is the type of question to ask here, sorry if it's not My brother-in-law and I have created a business with the intention to start property development. Our overall intention is to build a portfolio of rental properties but have been looking at other options. One particular opportunity we've got is apparently beyond us in terms of financing but we've learned a lot about budgeting/business case/process etc. Any advice on what properties to start out with and how to grow a portfolio of properties? If we buy a flat, we might make 8% yield but is it then a case of saving and sitting on it for a year or 2 before buying the next one? Link to comment Share on other sites More sharing options...
Richlist Posted October 16, 2017 Report Share Posted October 16, 2017 One way is to buy below market value. Find someone who wants a quick sale or buy a property in need of refurbishment. Alternatively buy something with opportunity for development......add an extra bedroom, bathroom, extend out or up. Buy at auction or a repossession through local agents. Buy in an upcoming area which has rising prices. This has happened in many of the London boroughs over the years. But anywhere that has or will have improved transport links tends to push up the prices. It's not easy, you need to be creative and think out of the box. Remember there is always someone else out there who has done it all before. You should get your finance in place before you look seriously. If you don't have cash, most property auctioneers will have links to lenders offering short term /bridging finance. Good luck. Link to comment Share on other sites More sharing options...
JamesSouthend Posted October 17, 2017 Author Report Share Posted October 17, 2017 Thank you! I can't quite believe the costs of the bridging finance but it's the short term/high risk nature I guess. Having considered it last night, we're going to look for a standard BTL flat (hopefully something we can add value to) or similar as opposed to a larger renovation project. We'll build slowly to build it right. Are there any tips to finding the repossessed properties? Link to comment Share on other sites More sharing options...
Richlist Posted October 17, 2017 Report Share Posted October 17, 2017 All of my repossession purchases have been through letting agents. Either by me seeing a for sale board and phoning them or an agent phoning me to see if I would be interested. I read an article a week ago that said repossessions coming to market are down considerably so you might struggle to find something suitable. You should get friendly with your local agents, make sure they understand what you are looking for, convince them you have funds in place and can proceed quickly. If they think you will place the BTL with them for tenant find or on going management that's gives them an added incentive to call you if something comes in. Repossessions often come up at auctions so you should familiarize yourself with a few of your local a houses, pick up their brochures etc. Auctions are full of professional developers who have lots of experience and money so you need to be lucky. Agents will also have many long term professionals who probably have a track record of dealing successfully thru them. You need to build your reputation with them. Good luck. Link to comment Share on other sites More sharing options...
JamesSouthend Posted October 17, 2017 Author Report Share Posted October 17, 2017 Thank you (again). Noted down the next auctions in the area and will be looking through the catalogues and viewing early to build up each business case and see which one takes our eye. Excited about this! Link to comment Share on other sites More sharing options...
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