Buying Bargains at Auction or Finding them on Rightmove
Today buying at auction is not like what it was in the recent past, lets say 2010. Those days if you were liquid you could basically steal deals if you had liquidity or a flexible bridging company…Today bargains are much harder to find at auction. Actually I have seen at auction prices are being pushed to the limit and actually are bad deals.
Conversely what we have found to be way to find or better said…create bargains, is to troll through Rightmove. We look for specific types of houses in which we can convert into HMOs. We look for bigger than normal master bedrooms….end houses…or corner….as well as 2 reception rooms. We look for stale listings ( listed several months ago). However even these are getting tougher as it has become to some degree a sellers market. However we still do find more than enough properties that we want to own ourselves. It takes work….It takes alot of viewings. The property business is hard work .
In order to increase our liquidity we do up these properties….enter into 5 year guaranteed rent programs for Social housing…we have no voids…no management…maintenance is covered up to 5,000 per year and sell some of these off…We have some Middle Eastern investors who like the hands off approach. However everything has risk to some degree and even though we have a 5 year contract, there is a 3 month break clause. We use multiple strategies and strongly suggest the same.
If I can answer any questions please contact me…
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