Tracking down unmortgageable properties
Feb 05, 2020
A smart investor is always looking for properties that are considered unmortgageable by the mainstream mortgage lenders. Why? Because the sellers know they can’t expect to get full market value for a property that doesn’t qualify for a mortgage.
That means that the pool of potential buyers is MUCH smaller. Consequently, they know they’re going to have to negotiate and bring the price down to make the sale. We’re not talking about knocking off a couple of thousand here - but anything between 10-50% below full market value.
So how do you find these properties?
- Any properties listed with the online websites (e.g. RightMove) that are listed as ‘Cash buyer only’ - particularly if there aren’t any internal photos. That usually means things are pretty bad!
- Check out the property auction listings. Again look for ‘cash buyer only’ notes.
- Keep your eyes open in your local area for properties that have been boarded up - that usually means they’ve been vandalised and are in a really poor state of repair. Often the actual damage is cosmetic and reasonably easy to fix.
- If you’re looking for an HMO conversion project, watch out for closed down pubs, small office buildings that are empty and bigger properties that aren’t moving.
- Chat up your friendly local estate agents. If they know you’re looking you could be the answer to some of their clients’ prayers - any owners trying to sell a property they’ve converted without planning permission, might be a great opportunity if you do your homework first.
With the right kind of bridging finance and some smart negotiation you can leverage your investments to make more profit, faster and without needing a huge bank balance.
You can learn more by:
- Attending an upcoming webinar - register here
- Booking into a LIVE! 3-day workshop - book your ticket here
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