The Wilsons - 875 buy to let property empire

Dithering_Dad

Conrad wrote: »

Common sense and my experience tells me these 2 will be up to around 90%+ ltv in order to have kept buying property so frequently. 15% equity is nothing, it could become 15% negative overnight.

I'm sorry, smart investors I know have not been buying for some time now. These clowns seem to be unaware of cycles and 'buy low, sell high'.

What gauls is thier love of limelight as if they are something to behold, when in reality any of us could do it, if we were mad enough.

With respect Conrad, and while I actually also believe that you're probably right, you can't say for certain that they have geared up to 90%. It's all just speculation.

I agree with the limelight though, it's a tad garish. it makes one wonder if the concentration of their properties in one area is more akin to dreams of emulating 19th century Mill barons and being important in their local community rather than for any purely financial reason.

Dithering_Dad

Conrad wrote: »

I'm not jealous. Greedy fat [EMAIL="b@stads"]b@stads[/EMAIL]

lol, clearly not!

neverdespairgirl

Alan_M wrote: »

There seems to be a lot of unpleasant felling directed towards these tow..but who honestly wouldn't do the same if they had the foresight or ability?

I don't know why people keep saying that. I certainly wouldn't do the same, I have no desire to own 800 houses in Ashford!

RabbitMad

This to me looks like one huge house of cards. A light breeze and it will come falling down which will end in their bankruptcy.

A poster earlier said that they would have it structured as a limited company so as to be safe if it went wrong. I looked into doing a buy to let via a ltd and all lenders I looked at (inc northern rock) insisted on the directors personally being ultimately responsible.

brit1234

Wilsons Very Bad Day (31st July)

By my calculations based on the Nationwide figures, number of Wilson Properties and total value they have lost is £4,000,000 in value in one day.

Yes £4 million today alone



£4,000,000





:rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl:

Leighthal

brit1234 wrote: »

Wilsons Very Bad Day (31st July)

By my calculations based on the Nationwide figures, number of Wilson Properties and total value they have lost is £4,000,000 in value in one day.

Yes £4 million today alone

£4,000,000

:rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl:

But surely that's like saying losing 4 quid but finding 250?This also depends on how leveraged they are AND if they have to sell right now.

brit1234

Leighthal wrote: »

But surely that's like saying losing 4 quid but finding 250?This also depends on how leveraged they are AND if they have to sell right now.

They may not need to sell right now but I guarantee they have properties to remortgage which is also affected by house price falls.

Also we have had a fair few months of £4 million loses from their portfolio.:j:beer::j

Generali

brit1234 wrote: »

They may not need to sell right now but I guarantee they have properties to remortgage which is also affected by house price falls.

Also we have had a fair few months of £4 million loses from their portfolio.:j:beer::j

I'd be very surprised if they had 800 mortgages on 800 houses. Much more likely is that they have lines of credit (which work a little like an overdraft) each secured against groups of houses.

The lines of credit will have covenants. If they break the rules of the covenant then the line of credit is repayable immediately. The main covenants are likely to be that the value of the houses (probably compared to a 3rd party calculation of some sort) needs to be 1xx% of the value of the line of credit and that the credit is paid off a a certain rate.

The interest they pay is likely to be Libor + 0.xx% or fixed for a couple of years. It's almost always too expensive to fix a commercial loan for more than a couple of years in my experience.

mewbie_2

I wonder where their boredom threshold is? Personally I would be happy (very happy) with say ten, or at a push maybe fifty houses - but to just carry on and on seems a bit mindless. "What shall we do today dear?"
"Buy some houses."
"Great idea - I'll get me coat."

chrisandanne

:rotfl: :rotfl:

That's where I've been going wrong...I own 800 T Shirts. A x