Re: Would like advice please regarding flipping houses

Andrea2528

i think probably that my partner meant that he is guaranteed his investment back and 10% due to the security this person has on his business.  I think the first charge is supposed to protect my partner hopefully

mark_cycling00

Sounds like they're limited to 10% gain and the other person takes the rest.

I think you should go for it! 
It's probably a 2 year project so that's about 4.75%pa. 
Where else can you get an investment or savings account paying that?

TheSpectator

Pass me your partners details, I have a hairbrained scheme he might be interested in. 

Seriously is he that gullible.

flaneurs_lobster

"A few hundred thousand" 

This thread is definitely a wind-up. 

Just in case it's not, can the OP please make sure that their own assets are in no way associated with their partner's punt.

jimjames

Andrea2528 said:

i think probably that my partner meant that he is guaranteed his investment back and 10% due to the security this person has on his business.  I think the first charge is supposed to protect my partner hopefully

What happens if the property market drops and the house that was worth £200k is now only worth £150k? How will he get his £200k back when it no longer exists? Don't have the first charge, if he insists on going ahead your partner should have the property in HIS name as he's the only one funding it.

Andrea2528

I thought the first charge was to secure partner's investment though, if that is the case, then what is the problem if the person he is lending to has plenty of assets to sell?

flaneurs_lobster

mark_cycling00 said:

Sounds like they're limited to 10% gain and the other person takes the rest.

I think you should go for it! 
It's probably a 2 year project so that's about 4.75%pa. 
Where else can you get an investment or savings account paying that?

Wind up.

Tandem Bank, 2 year fixed, 4.65%. 

Andrea2528

The person who he is lending to has stated that he will get his money back with 10% of the investment even if he has to sell his own assets

CliveOfIndia

Andrea2528 said:

I thought the first charge was to secure partner's investment though, if that is the case, then what is the problem if the person he is lending to has plenty of assets to sell?

If the person has assets which he is able and willing to sell, why doesn't he sell them now and fund the project himself, without needing to ask your partner to stump up the cash?

I'm sorry, either this whole thread is a wind-up, or your partner needs a serious reality check.  I'm willing to bet that, should your partner go ahead with this, the only outcome will be a bad one.

Andrea2528

This person states that he's hoping to flip the houses very quickly and that he would be able to do several in a year