So how can you make £ 100ks from
£ 10k?

Just ordering nandos then I'll tell you

Buckle up

Here we go

I'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'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

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

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.....

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's been granted

Your architect should also be able to help at this stage

So what'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'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

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'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

Take out the £ 32k for complications, added legal fees & anything else you could dream of & you're looking at a profit of £ 300k from £ 10k

But why doesn't everybody do it then I hear you ask?

Well, exactly the same reason you haven't done it

You simply didn't know how to

I'll add some other options and what to look for tomorrow

This is just what is currently being rushed through by local councils to meet higher demand for affordable housing

As previously stated, don't fight the trend