Good Old Fergus!

chucknorris

Crashy_Time wrote: »

Do you think that being a University lecturer (cough cough) is impressing anyone? No wonder you aspire to be like Fergy, he was some sort of lecturer before he started changing light bulbs wasn`t he?

I don't aspire to be like Fergy. The details I give were in direct response you calling me a half educated chav.


I ask again:
What do you do, and what are your qualifications? Is it really that embarrassing that you can't say?

DTDfanBoy

What woes would those be, working out how to ditch 1,000 properties for maximum return, or how to stay in the limelight

Crashy_Time

chucknorris wrote: »

I don't aspire to be like Fergy. The details I give were in direct response you calling me a half educated chav.


I ask again:
What do you do, and what are your qualifications? Is it really that embarrassing that you can't say?

Quoting "wealth secrets", like always being engaged in something you enjoy in response to me calling Fergus out as someone in difficulty is lame, the sort of thing people do when they think they are educating someone, or only half understand a concept. Fergus isn`t Buffett, he is someone who rode a credit bubble on the way up, and didn`t get out in time, he doesn`t look like he is enjoying what he does to me. My qualifications are none of your business, but if you still use measures such as qualifications and job to gauge people you have much learning to do my friend.

Crashy_Time

DTDfanBoy wrote: »

What woes would those be, working out how to ditch 1,000 properties for maximum return, or how to stay in the limelight

Close, the "woes" would be taking six years to work out how to ditch 900 + properties for ANY return , and looking like a prize plonker every time you step into the limelight :rotfl:

chucknorris

Crashy_Time wrote: »

Quoting "wealth secrets", My qualifications are none of your business,but if you still use measures such as qualifications and job to gauge people you have much learning to do my friend.

I didn't quote wealth secrets and you not I brought up qualifications! I actually agree with you, qualifications are only proof of an education (rather than intelligence), yet it was you that brought qualifications up and therefore you attached the significance to it!

Crashy_Time

chucknorris wrote: »

I didn't quote wealth secrets and you not I brought up qualifications! I actually agree with you, qualifications are only proof of an education (rather than intelligence), yet it was you that brought qualifications up and therefore you attached the significance to it!

Being actively engaged in life is a kind of wealth secret that crops up in many many inspirational/self help type books, it is the reason that people worth billions continue to create projects and goals that make more money, they are driven by the joy of the activity, not just the result? The writer Ben Sweetland makes many references to people that have everything, and feel there is nothing left to achieve, being less joyful than those who are engaged in reaching a goal. However I don`t think owning 900+ BTL`s is a worthwhile goal, especially when it is done with leveraged money, and I don`t get much inspiration from Fergus and his missus. I get why Buffett still does market research (just) I get why Jagger/Springsteen/ACDC etc. still write songs (more) I don`t get why someone would hang on to 900+ BTL`s in this market (unless they can`t sell them?)


The fact that you seemed to class Fergus as in the "doing what he loves" group, and me in the "Get money, lie on the beach drunk for the rest of time" group caused me to joke that you only had half a grasp of the concept that you mentioned, because I don`t believe that Fergus is in that group, and I know that I am not in the other group.

chucknorris

Crashy_Time wrote: »

Being actively engaged in life is a kind of wealth secret that crops up in many many inspirational/self help type books, it is the reason that people worth billions continue to create projects and goals that make more money, they are driven by the joy of the activity, not just the result? The writer Ben Sweetland makes many references to people that have everything, and feel there is nothing left to achieve, being less joyful than those who are engaged in reaching a goal. However I don`t think owning 900+ BTL`s is a worthwhile goal, especially when it is done with leveraged money, and I don`t get much inspiration from Fergus and his missus. I get why Buffett still does market research (just) I get why Jagger/Springsteen/ACDC etc. still write songs (more) I don`t get why someone would hang on to 900+ BTL`s in this market (unless they can`t sell them?)


The fact that you seemed to class Fergus as in the "doing what he loves" group, and me in the "Get money, lie on the beach drunk for the rest of time" group caused me to joke that you only had half a grasp of the concept that you mentioned, because I don`t believe that Fergus is in that group, and I know that I am not in the other group.

Again you missed the point completely, I in NO WAY WHATSOEVER CLASSED HIM AS DOING SOMETHING HE LOVES (by being a landlord)! That is your idiotic interpretation, what I said was:

I don't sit in the South of France sunning myself because I have more important things to do with my life (at the moment).

That isn't because I love being a landlord (why on earth would I? I obviously do it for the profit and no other reason). I was talking about my lifestyle and raising the possibility that he also would probably have other things going on in his life. As for my circumstances, I stand by every word, I enjoy my job, I enjoy my hobbies i.e. running, cycling and swimming...I hope to complete my first triathlon next summer. I captain two chess teams, I play bowls at a reasonably good level (I usually make a few finals every year at my local club and do well in the county championships) and I have very good friends over here, I have no interest in lazing about in France, maybe Spain (winter only) in a few more years, but not yet (but I must admit that I am wavering, I like my job but it is has got to the point where I might not be able to spend what I am saving. But when I do go, it won't be about lazing about, more about hiking with my wife and dog and running and cycling in warmer climbs than here.

chucknorris

DTDfanBoy wrote: »

Have you paid no attention whatsoever to the housing market in the last 5 years, especially in the south east, I'd don't think there's a mortgage interest rate on the market that would make it possible to become overleveraged :rotfl:

They are certainly sitting on a mountain of equity and I can see why they are trying to sell it as an entire 'buy to let package', because if they try and sell them conventionally it will affect prices locally. But it doesn't seem to be working, but that can't really be a surprise as a portfolio of that size is massive. I would try other strategies at the same time:

1. Try to sell smaller buy to let packages of 5, 10 and 20 properties, there might be more interest for approximate overall values of about £1m, £2m and £4m.

2. I would sell about 1% of the portfolio every 2 or 3 months on the market conventionally, they could start with the least profitable and/or vacant properties.

3. They could also try selling them as individual BTL properties too.

thequant

chucknorris wrote: »

They are certainly sitting on a mountain of equity and I can see why they are trying to sell it as an entire 'buy to let package', because if they try and sell them conventionally it will affect prices locally. But it doesn't seem to be working, but that can't really be a surprise as a portfolio of that size is massive. I would try other strategies at the same time:

.

Their problem is that they want to sell in bulk, but anyone buying in bulk wants a discount.


If that discount is to high they need to sell in smaller packages, to reduce this discount.


If they don't want to offer any kind of discount, they need to sell each property individually.


This is how business works, you order in bulk and receive a discount by lowering the transaction costs and inconvenience to your seller. You then take on that inconvenience and break into smaller packages and make your profit.


Sounds like to me the wilsons, want to have the higher margin that comes from selling each property individually, but the convenience of selling in bulk.


I.e. they want their cake and eat it, at a £billion they wont find anyone willing to facilitate this.

chucknorris

thequant wrote: »

Their problem is that they want to sell in bulk, but anyone buying in bulk wants a discount.


If that discount is to high they need to sell in smaller packages, to reduce this discount.


If they don't want to offer any kind of discount, they need to sell each property individually.


This is how business works, you order in bulk and receive a discount by lowering the transaction costs and inconvenience to your seller. You then take on that inconvenience and break into smaller packages and make your profit.


Sounds like to me the wilsons, want to have the higher margin that comes from selling each property individually, but the convenience of selling in bulk.


I.e. they want their cake and eat it, at a £billion they wont find anyone willing to facilitate this.

They don't really need to sell it all, they are probably making at least £4m per annum rental profit on their portfolio and have 2 daughters to leave it to. I believe one of their daughters already owns about 30% of the business anyway. They only need to sell about 5% per annum (which would take Fergus to his 86th birthday, so a little put aside would be needed) that would probably severely challenge them to spend the proceeds given the huge rental profits that they already make.


EDIT: The rental profit could be a lot higher as it is rumoured that they gross about 3% on their portfolio which would put it at over £5m.