Can I live in a property during an assisted sale?

AdrianC

Trebor38 wrote: »

What do you guys think?

I think I still don't have a clue what's actually going on here - and you don't seem terribly willing to set it out in a nice clear fashion, which means either you've been suckered into thinking this is a nice earner, you don't actually have a clue either, or both. And I know where my money lies on that..

And, frankly, with your attitude towards those you asked for help...

Ah'm oot.

Trebor38

I can't see any of the above working , certainly not for the vendor.

Their best bet would either reduce the price dramatically for a quick sale or auction.

I don't mean to be rude to OP but I think your idea is borderline taking the p and if I was a family member of the vendor I would tell them just to get it sold well before squatters move in and do even more damage

Why do you think I'm taking the p? I'd really like to understand why you think that. From my angle I am creating revenue for the vendor who is currently paying out on an empty property.

It's not much different from a RTO RTB (rent to buy option) where an investor/tenant agrees on a purchase price, pays an up front sum for the option, and then pays monthly rent + plus top up to the vendor for agreed number of year(s) when the option to buy is either exercised or expires, and the vendor keeps all non refundable moneies. Plus in addition to this, all maintenance costs and out goings become the responsibility of the investor/tenant. Saving costs to the vendor and allowing the investor/tenant to do work and add value before purchase.
Worst case scenario is the option expires and the vendor get the property back with all works done at tenants expense... Plus the several thousand pounds per year he's made from rent and initial setup cost of the agreement.

I know these are advance property investment strategies, over most people's heads. Went over mine when I first learnt about them, but just Google Rent to Rent, Rent to Buy, lease option, assisted sales.
These are not cons, they are legitimate investment strategies employed by a lot of wealthy property investors.

I don't see my idea as that much different to any of these, as this is where I got the idea from. The bit about me living on the property is only because I happen to currently be looking for somewhere to rent having just finished my last project.

I was warned that most people won't understand these strategies, and boy how right were they.
I have asked the same question on a property investment forum (where I copy n pasted my last response from) and I got a completely different response. So I guess it's my fault for asking average Joe's a question that they could never understand.

They say knowledgeable people teach and lift people up... while ignorant people belittle others and pull them down. Guess which use this forum.

[Deleted User]

If the asking price is £100k and nobody has bought it for £100k in the last two years then the property is not worth £100k. Anything will sell if priced correctly.

How much do you have to spend on a property to renovate? Could you make the vendor a "cheeky" offer to take the property off his hands? What you're proposing seems like a lot of hassle for both you and the vendor - I'm not saying it can't be done but just because something can be done doesn't mean to say it should be done.

This is primarily a forum for consumers and in terms of lettings that generally means people's expertise tends to be on tenancies and licences offered to consumers, so in England and Wales that would be advice for excluded occupiers, Assured Shorthold Tenancies and the very occasional Assured Tenancy, and in Scotland advice for common law tenants, Short Assured Tenancies, Assured Tenancies and the new(ish) Private Rental Tenancies, don't ask me about Northern Ireland because I don't have a clue. What you appear to be asking about is more of a B2B arrangement which is probably outside the scope of this forum and for which you might need to seek proper legal advice.

Trebor38

I think that as you said, the numbers dont work,!so find another client / property.

When I was in business we'd sometimes get offers to bid on jobs where the prices were such that we'd have been working at a loss (or just at a profit margin way below what was acceptable). We declined to bid on those.!

You should do the same on this because from what you've posted you would literally earn more more flipping burgers or stacking shelves.

Thanks Joe for the only civil reply here lol,

I know what you are saying. It does feel somewhere of a win/lose in the vendor's favour. The only and main benefit to me was the idea of renting and earning a little along the way.
Usually renting is dead money, so I thought renting while working towards something potentialy profitable might be a good idea. Even if it wasn't profitable to me, although I think it should, I would have still saved a little on living expenses.
Plus this would stop me working on other projects day to day. Living on site would mean I'm on hand to chip away at the renovation work. And when I say on site, the property is habitable, just about, horrible kitchen and bathroom, but I've lived in a lot worse when renovating properties, A LOT worse. Lol

Thanks again, I'll consider my options.

Trebor38

Thank you Lover of Lycra (giggerdy)

I love talking to intelligent respectful people like you. I can see I have asked the question in the wrong place and for that I take full responsibility.
When people try and speak down to me or don't even try to understand what I am saying, it will always put me into defensive mode.
When learning new areas of interest I am notorious for struggling to communicate my point effectively. But my method has always been to jump on the deep end and thrash about until I look like I know what I'm doing... then eventually, with the right help, I do.

It's not B2B exactly but I know what you are saying. The houses on the vendor's road sell at about 130k, one was 160k but that was special. I spoke with an agent who told me 140k was the ceiling. If still say 130k myself.
I think a cheeky offer of 75k would likely get it shifted, but the vendor is fixed on 100k and I wanted to make sure he got it. Regardless of what people think in here, I was trying to create a win/win for both him and myself.
I still have the option of a RTB or, if 75k was likely to be accepted, a bridging loan. But then I don't know what my exit strategy would be if the property did not sell in 12 months, when the bridging loan would be due. Then maybe a JV... I don't know.

The council past my details on to the vendor because they don't like empty homes. He contact me, and I'm trying to help him out, but I'm not a charity... I've got taxes to pay too.

Thanks again for your response. Appreciated.

Trebor38

Plus this would stop me working on other projects day to day.

Wouldn't stop me working on other projects day to day!

AnotherJoe

Trebor38 wrote: »

Wouldn't stop me working on other projects day to day!

No but that would slow down your work on this house considerably, i wasnt joking when i said you'd earn more money flipping burgers, plus it would have fixed hours and you could walk away from the job if you didnt like it or the money was bad. This one you'll only know how dire the "wages" were after you sell. If you sell.

Pat of running a business profitably is to know what to work on and what not to work on. Your vendor sounds highly unrealistic, and you, instead of looking at the project dispassionately and not taking it on seem to be bending over backwards to make it work when its got a very dubious profit margin (doesn't look like any to me), youll live in a dump for a year, work every evening and weekend and not be able to escape the job, and have no exit strategy if it doesnt sell.



BTW, perhaps rather than criticise everyone who asked you what this was all about, maybe reflect that you explained it very badly. Given how many didn't understand, essentially everyone, and that you treated their genuine questions as hostile. Hopefully you wont do that with clients as you start this fledgling business but I suggest you dont take this particular client on as it seems to be a lose-lose situation since the vendor is unrealistic and has already let the property deteriorate and lose money.