Why We Do Not Source Properties
I would tend to believe that many property investors and want to be property investors under estimate all the risks in UK Property. They think they can simply find a honest JV partner or a builder. I can tell you first hand, our job seems to be problem solvers. We are constantly bombarded with issues ( so called problems). We tried to buy a building recently and it needed to go through planning. The vendor requested a 10 % deposit. It was agreed it planning permission was not agreed the deposit would be returned. The council inspected the property and they did not agree to issue planning. You would think we would get the deposit back. One week has gone by and the buyers solicitor has gone quiet. This forces us to first send a letter from a litagator to the buyer as well as there after we will lodge a complaint on the solicitor. Yesterday was the typical fun day. After a year of trying to convey a property to provide a social housing organization on a long 5 year contract, they inspected the property and did not like the size of the kitchen. Instead of a 4 bed they will accept as a 3 bed. Bingo, there goes all the profit on the rents. Then we decided to fix it up and sell it as it is in a great area, bingo our solicitors told us we must hold it several months due to a lease extension we did in order to make the property marketable.
Property is issues. I would prefer taking care of those issues for myself than be accountable to someone else and hear them complain. This is why I only sell tenanted cash flowing, contracted for 5 and 10 year properties. I know at this point they have gone to bed and simply cash flow. They cash flow for us or if we sell them. No issues…No drama. We love long leases, no voids…no managment and maintenance covered up to 5,000 a yeaer. Especially now that tenant evictions have been prolonged even further. Why would anyone want to rent a property in which the tenant can live in it and not pay rent and not be evicted?
Crazy
Recent Comments