Generally, I like to keep things simple. Find a property and make an offer, either Below Market Value (BMV) or based on adding value in some shape or form. I've used option agreements and done back-to-back cash deals but I tend to stick to traditional methods of buying
Take my first deal of the year in March - a two-bed end of terrace ex-council house in Bromley requiring full refurbishment. In its current condition it's worth £180,000 and after works I expect it will achieve £210,000. I made an offer of £143,000 based on exchanging contracts within a week.
- Refurb costs £16,000
- Private finance (over 6 months) £10,725
- Legals for purchase £1,800 (buyers & seller)
- Legals for sale £800
- Estate agents fees £3,780
- Stamp duty £1,430
- Contingency £1,600
- Total £36,135
- G Profit £30,865
This is a corner plot house with a large 'L' shape garden and garage. Now, I do believe it's worth getting my architect down to see if there's any chance of building another house there.