property investment company want my HMO

snickpan

numbercruncher8 said:

Don't take it personally, but it doesn't require much expertise to realise this isn't a great deal.
The guy here is in business to make money. The deal as described gives him most of the upsides, with few downsides - if the property market falls, he can just walk away. It makes a lot of sense for him.

He can present things so it might seem that he is doing you some kind of favour, but that is what all good salesmen do. The stuff about a £200k uplift just because of a change of mortgage is baloney to me. For that they would need either a massive improvement to the house (house values are more or less the same whether HMO or not), or achievable yields would have to be massively out of kilter with the current price (in which case, why aren't you charging that).

Much like the 'we buy your house for cash' guys, you'd have to be desperate to want to do a deal this way. I don't think its a case of being rude or insulting, but such deals are pretty derisory for those who don't need to sell in a rush.

Difficult for him to walk away if we've exchanged.  And yes, it all seems odd, hence my motivation to post on here, garnering opinion.  

trex227

Surely if it was possible to borrow £700k on a £500k property there would be loads of people doing this then riding off into the sunset having pocketed the additional £200k leaving the bank to repossess the property and sell at a massive loss.

I can’t see where you would be getting stiffed, but given the proposed scheme doesn’t make any sense there must be a scam somewhere.

davidmcn

snickpan said:

numbercruncher8 said:

Don't take it personally, but it doesn't require much expertise to realise this isn't a great deal.
The guy here is in business to make money. The deal as described gives him most of the upsides, with few downsides - if the property market falls, he can just walk away. It makes a lot of sense for him.

He can present things so it might seem that he is doing you some kind of favour, but that is what all good salesmen do. The stuff about a £200k uplift just because of a change of mortgage is baloney to me. For that they would need either a massive improvement to the house (house values are more or less the same whether HMO or not), or achievable yields would have to be massively out of kilter with the current price (in which case, why aren't you charging that).

Much like the 'we buy your house for cash' guys, you'd have to be desperate to want to do a deal this way. I don't think its a case of being rude or insulting, but such deals are pretty derisory for those who don't need to sell in a rush.

Difficult for him to walk away if we've exchanged.

That depends what you've exchanged. Do you know what the contract actually says? If it's an option agreement that means you have to sell, he doesn't have to buy.

SpiderLegs

snickpan said:

numbercruncher8 said:

Don't take it personally, but it doesn't require much expertise to realise this isn't a great deal.
The guy here is in business to make money. The deal as described gives him most of the upsides, with few downsides - if the property market falls, he can just walk away. It makes a lot of sense for him.

He can present things so it might seem that he is doing you some kind of favour, but that is what all good salesmen do. The stuff about a £200k uplift just because of a change of mortgage is baloney to me. For that they would need either a massive improvement to the house (house values are more or less the same whether HMO or not), or achievable yields would have to be massively out of kilter with the current price (in which case, why aren't you charging that).

Much like the 'we buy your house for cash' guys, you'd have to be desperate to want to do a deal this way. I don't think its a case of being rude or insulting, but such deals are pretty derisory for those who don't need to sell in a rush.

Difficult for him to walk away if we've exchanged.  

Difficult for you to enforce a contract with a business that no longer exists

snickpan

trex227 said:

Surely if it was possible to borrow £700k on a £500k property there would be loads of people doing this then riding off into the sunset having pocketed the additional £200k leaving the bank to repossess the property and sell at a massive loss.

I can’t see where you would be getting stiffed, but given the proposed scheme doesn’t make any sense there must be a scam somewhere.

yup, all very intriguing.  He seemed confidant, as if the more he spent (deposit, renovations/refurb) the more of a commercial (re?)mortgage he'd get.  His example was to add en suite to each room (they are very large bedrooms) so he could get nearer £700 per room, rather than the £560 I currently charge.

snickpan

SpiderLegs said:

snickpan said:

numbercruncher8 said:

Don't take it personally, but it doesn't require much expertise to realise this isn't a great deal.
The guy here is in business to make money. The deal as described gives him most of the upsides, with few downsides - if the property market falls, he can just walk away. It makes a lot of sense for him.

He can present things so it might seem that he is doing you some kind of favour, but that is what all good salesmen do. The stuff about a £200k uplift just because of a change of mortgage is baloney to me. For that they would need either a massive improvement to the house (house values are more or less the same whether HMO or not), or achievable yields would have to be massively out of kilter with the current price (in which case, why aren't you charging that).

Much like the 'we buy your house for cash' guys, you'd have to be desperate to want to do a deal this way. I don't think its a case of being rude or insulting, but such deals are pretty derisory for those who don't need to sell in a rush.

Difficult for him to walk away if we've exchanged.  

Difficult for you to enforce a contract with a business that no longer exists

true, but I get the impression there are many people using this modus operandi to take over portfolios.  Almost as if they're successful businesses, can you believe

dimbo61

Nearly every month we get a letter in the post offering to buy our HMO.
The fact that we have our name and address is on the HMO website is really annoying.
They offer to buy the property quickly and for a fair price or do this buy/rent/lease if we can't be bothered looking after our HMO.
They will collect the rent, find tenants, maintain the property 🤔 
However the buck stops with the HMO registered landlord and not his agent.
Put the letter in the bin

SpiderLegs

snickpan said:

SpiderLegs said:

snickpan said:

numbercruncher8 said:

Don't take it personally, but it doesn't require much expertise to realise this isn't a great deal.
The guy here is in business to make money. The deal as described gives him most of the upsides, with few downsides - if the property market falls, he can just walk away. It makes a lot of sense for him.

He can present things so it might seem that he is doing you some kind of favour, but that is what all good salesmen do. The stuff about a £200k uplift just because of a change of mortgage is baloney to me. For that they would need either a massive improvement to the house (house values are more or less the same whether HMO or not), or achievable yields would have to be massively out of kilter with the current price (in which case, why aren't you charging that).

Much like the 'we buy your house for cash' guys, you'd have to be desperate to want to do a deal this way. I don't think its a case of being rude or insulting, but such deals are pretty derisory for those who don't need to sell in a rush.

Difficult for him to walk away if we've exchanged.  

Difficult for you to enforce a contract with a business that no longer exists

true, but I get the impression there are many people using this modus operandi to take over portfolios.  Almost as if they're successful businesses, can you believe

Excellent. Can you provide the details of any of these many successful businesses?

after all, you’ve poured scorn on anyone who’s opinion doesn’t stack up to your ‘impression’ so it would be good to have some empirical data to back it up 

blue_max_3

Seems they would rather do anything, than actually buy from you at current market value.
A good property developer would probably not be troubled by financing £500k, it they stood to make £200k in twelve months. 
I don't see why anyone would find this smoke and mirrors scheme attractive really.

snickpan

SpiderLegs said:

snickpan said:

SpiderLegs said:

snickpan said:

numbercruncher8 said:

Don't take it personally, but it doesn't require much expertise to realise this isn't a great deal.
The guy here is in business to make money. The deal as described gives him most of the upsides, with few downsides - if the property market falls, he can just walk away. It makes a lot of sense for him.

He can present things so it might seem that he is doing you some kind of favour, but that is what all good salesmen do. The stuff about a £200k uplift just because of a change of mortgage is baloney to me. For that they would need either a massive improvement to the house (house values are more or less the same whether HMO or not), or achievable yields would have to be massively out of kilter with the current price (in which case, why aren't you charging that).

Much like the 'we buy your house for cash' guys, you'd have to be desperate to want to do a deal this way. I don't think its a case of being rude or insulting, but such deals are pretty derisory for those who don't need to sell in a rush.

Difficult for him to walk away if we've exchanged.  

Difficult for you to enforce a contract with a business that no longer exists

true, but I get the impression there are many people using this modus operandi to take over portfolios.  Almost as if they're successful businesses, can you believe

Excellent. Can you provide the details of any of these many successful businesses?

after all, you’ve poured scorn on anyone who’s opinion doesn’t stack up to your ‘impression’ so it would be good to have some empirical data to back it up 

easy tiger!
Are you currently frothing at the mouth!