Read on Twitter
Here we go
I& #39;ll try keep this extremely simple as it actually is
Similar to trading, we have a tendency to overcomplicate things instead of simplifying
List of what you& #39;ll need and details on each as we go
Location will be a factor but I stick by my £ 10k capital advice
I& #39;ll try keep this extremely simple as it actually is
Similar to trading, we have a tendency to overcomplicate things instead of simplifying
List of what you& #39;ll need and details on each as we go
Location will be a factor but I stick by my £ 10k capital advice
The basis of my advice is on running an option on a property you do not even need to own
What does this mean?
In simple turns its like me knocking on your door & offering 10% above market price
Why?
I will pay for a planning application to rebuild flats/new home on your plot
What does this mean?
In simple turns its like me knocking on your door & offering 10% above market price
Why?
I will pay for a planning application to rebuild flats/new home on your plot
This gives the owners a fantastic opportunity to cash in on their property that we know has potential to build
You will then set an architect to draw up these plans with only a successful application triggering the option to buy
No planning permission = no purchase
You will then set an architect to draw up these plans with only a successful application triggering the option to buy
No planning permission = no purchase
This limits you to the following
1. Architects fees
2. Council application fees
3. Potential time involved with council meetings etc
4. Small fee for the solicitor to put together the option legal to cover you both
That really is it
Simple right?
Sort of.....
1. Architects fees
2. Council application fees
3. Potential time involved with council meetings etc
4. Small fee for the solicitor to put together the option legal to cover you both
That really is it
Simple right?
Sort of.....
This is where Due Diligence comes in
Randomly picking properties hoping they have scope is one way to waste time/money
Instead, get in with the local estate agents offering perks ( yes this still goes on ) & also check local planning applications
See what& #39;s been granted
Randomly picking properties hoping they have scope is one way to waste time/money
Instead, get in with the local estate agents offering perks ( yes this still goes on ) & also check local planning applications
See what& #39;s been granted
Your architect should also be able to help at this stage
So what& #39;s your checklist
1. Architect in place
2. Agents sharing plots with potential
3. £ 10k capital to cover costs
4. Solicitor in place
It won& #39;t take you long to see what plots are doing well in your area
So what& #39;s your checklist
1. Architect in place
2. Agents sharing plots with potential
3. £ 10k capital to cover costs
4. Solicitor in place
It won& #39;t take you long to see what plots are doing well in your area
Never fight the trend
If flats are getting permission easy go for a flats
New homes sales through the roof, go for land with room for a some new houses
People are put off from doing this because they believe as they do not have funds to do the work its pointless
Wrong
If flats are getting permission easy go for a flats
New homes sales through the roof, go for land with room for a some new houses
People are put off from doing this because they believe as they do not have funds to do the work its pointless
Wrong
Example
You see a detached with enough room to build a new block of 8 flats on it
House is £ 450k
You knock & tell them you& #39;ll buy their place on an option for £ 500k
At no cost to them, start the planning process
6 months of tweaking & planning permissions granted
You see a detached with enough room to build a new block of 8 flats on it
House is £ 450k
You knock & tell them you& #39;ll buy their place on an option for £ 500k
At no cost to them, start the planning process
6 months of tweaking & planning permissions granted
You know have a 6 month ( up to you both ) to sell to a developer
The 8 flats will return over £ 2.6m once built ( new flats carry premiums )
Based on market ave that puts your option at £ 832k ( 32% of gdv ) leaving huge margin for the buyer
This leaves you with £ 332k
The 8 flats will return over £ 2.6m once built ( new flats carry premiums )
Based on market ave that puts your option at £ 832k ( 32% of gdv ) leaving huge margin for the buyer
This leaves you with £ 332k
