How to find distressed properties for sale?

fashionvictim

A lot of the properties 'offer to the market in immaculate condition' or "ready to move in' seem distressed to me !!

If you can pay cash then look at estate agents that have an auction part- like Romans (other estate agents available)

Or you could register with all the usual local agents for chain free properties only in your budget, which are usually repo's or probates.

Once I viewed one 'doer upper' with a local Estate agent the agents rang me about EVERY dodgy property listed after that. The issue was some were in need of a LOT of work and I think might of been be harder to get a mortgage on.

You can do up something then it's worth 30K more than all the similar properties on the road. BUT when you try to sell it on the buyers mortgage providers surveyor will look at local sold prices. So it's a delicate balance of getting it cheap enough in first place.

alchemist.1

People always underestimate the work required on properties such as this. The people who make money have been in the property development business a while/can do the majority of work themselves like a builder.

chappers

alchemist.1 wrote: »

People always underestimate the work required on properties such as this. The people who make money have been in the property development business a while/can do the majority of work themselves like a builder.

Whilst that may be true to a certain extent, the best property developers, like the best professional gamblers are those that are good with the money.

I started down the road as a builder, developer but nowadays I hardly ever pick up the tools and my projects turn out far more profitable than they ever did when I was trying to work on site as well as running the project.
The amount of money I would save by not having to pay someone else to do my days labour, I can save in 5 minutes on the internet or on the phone.
Taking a step back and concentrating on the project as a whole has made my business far more efficient.

My advice to you would be not to take on anything too ambitious first time, unless you do have some decent knowledge of the building industry and above all choose your builder carefully, cheap doesn't always work out best.
Do your homework especially the headline finances, you can worry about the ins and outs of the actual build costs later that's where you make extra profit. Make sure that the project is viable at the worse case scenario many properties sold as development opportunities are only priced at market value minus the costs of renovation.

alchemist.1

chappers wrote: »

Whilst that may be true to a certain extent, the best property developers, like the best professional gamblers are those that are good with the money.

I started down the road as a builder, developer but nowadays I hardly ever pick up the tools and my projects turn out far more profitable than they ever did when I was trying to work on site as well as running the project.
The amount of money I would save by not having to pay someone else to do my days labour, I can save in 5 minutes on the internet or on the phone.
Taking a step back and concentrating on the project as a whole has made my business far more efficient.

My advice to you would be not to take on anything too ambitious first time, unless you do have some decent knowledge of the building industry and above all choose your builder carefully, cheap doesn't always work out best.
Do your homework especially the headline finances, you can worry about the ins and outs of the actual build costs later that's where you make extra profit. Make sure that the project is viable at the worse case scenario many properties sold as development opportunities are only priced at market value minus the costs of renovation.

Do you think your background and experience allows you to keep costs lower than a lay person?

csgohan4

alchemist.1 wrote: »

Do you think your background and experience allows you to keep costs lower than a lay person?

Builders make the best developers, they can save a lot of overheads on labour costs and materials as they have all the necessary contacts which the average Joe doesn't.


Not to mention they are usually cash buyers. Is it no wonder most of the buyers on Homes under the hammer are builders, at least the successful ones.

chappers

alchemist.1 wrote: »

Do you think your background and experience allows you to keep costs lower than a lay person?

If comparing my early developments to those of other novice developers then definitely yes, I had prior understanding of building, buildings and how they are constructed, didn't have to employ a builder who may fob me off with excuses etc. Also had good relationships with suppliers, other tradesmen and professionals within the industry.

However there are many, many far more successful developers than me, out there, who wouldn't know one end of a hammer from the other.

I also know of very good builders who have made forays into property development and failed spectacularly and without exception it's always been to do with the money.
As I said previously property developing is everything to do with the money.
Buy the property at the right price, spend the right amount of money on it and sell it at the right price. The intricacies of the build are mere details.

Bee70

a lot of councils now have registers of empty properties - in a drive to reoccupy these rather than just building new places - it might be worth asking?

Tassotti

http://propertytorenovate.co.uk/

or auctions

What I find with auctions is that absolute dogs of properties go for way too much money to make any profit.

On the other hand, properties that just need a wash and brush up can be picked up for a bargain.

Also, as mentioned before, it can take a while to build up good relationships with estate agents, but once you do, they can be very useful.

It's tough in this sellers' market though to bag a good deal. On the flip side, if you do manage to get one, it's easy to sell.