Re: Would like advice please regarding flipping houses

Hoenir

Andrea2528 said:

He can't do it himself. 

He is getting stressed about it because I won't help him 

The fog gets ever denser.  

flaneurs_lobster

Andrea2528 said:

He can't do it himself and wants me to do the transaction of paying the deposit online using his money to pay this other person, so they are sure of securing the property.  

Why can't he do this himself?

MisterMotivated

Andrea2528 said:

He doesn't want to mortgage the property but he realises he will obviously have to if the venture doesn't work out

I would've thought the friend mortgaging his own property would be more economical than paying a flat 10% of the borrowed amount, especially if the friend plans to do several of these a year.

On that point, if your partner lends the money and by some miracle gets his investment returned plus the 10% within, say, 6 months, is the friend going to ask to borrow the money again for the next flip?  And the next?  If that actually happened and your partner made 10% each time, the friend would be mad not to finance it through other means such as mortgaging his existing property/ies.

flaneurs_lobster

This "partner" of yours, would he happen to be on the other end of a Facebook Chat? Whatsapp Message? From somewhere overseas?

Andrea2528

Unable to actually use online banking.  I said he could do it over the phone or even go to the bank but he wants to do it through online banking

Andrea2528

If the person he is lending the money to is actually going to take a first charge against his own property, then what are the risks to my partner.  This property is worth more than the actual house they are purchasing

flaneurs_lobster

Andrea2528 said:

Unable to actually use online banking.  I said he could do it over the phone or even go to the bank but he wants to do it through online banking

So how will he transfer the money to you for you to pass on?

Or will he ask you to use your own money so that he can repay you "in a couple of days"? 

It is, after all, urgent to move quickly in case the property is sold elsewhere.......

Do wake up.

TheSpectator

Don't get yourself personally involved in any of this by using your bank accounts. They might end up frozen.

Bostonerimus1

Andrea is trolling us here, at least I hope she is because if not someone is going to be losing a lot of money. Nowhere in the advice for personal finance does it include "house flipping". The OP and her partner should be looking at saving accounts, pensions, ISAs and index trackers.

flaneurs_lobster

Bostonerimus1 said:

Andrea is trolling us here.

Agree, it's the throwaway "few hundred thousand" in the first post.