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Good Afternoon all, 

I am looking at buying at auction renovating and selling on to build up my pot of money so I can start my portfolio and eventually mean I can stop working. Whilst doing this I will only be working part time and will aim to get each property completed in approximately 4 months, has anyone come across any issue when selling a property in this speed as I know quite a few mortgage companies won't agree to a mortgage for the buyer if it has been previously sold within 6 months 

Thanks in advance

Sam and Kirsti

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On 3/11/2019 at 12:06 PM, sam_n_kirsti said:

Good Afternoon all, 

I am looking at buying at auction renovating and selling on to build up my pot of money so I can start my portfolio and eventually mean I can stop working. Whilst doing this I will only be working part time and will aim to get each property completed in approximately 4 months, has anyone come across any issue when selling a property in this speed as I know quite a few mortgage companies won't agree to a mortgage for the buyer if it has been previously sold within 6 months 

Thanks in advance

Sam and Kirsti

Hi to both of you,

I run a BTS business and yes this is something that you have to have in mind, but the good news is that there are quite a few lenders who will lend to a buyer when you have not owned the property that long.  This is where you need to have a good mortgage broker at the end of your phone.

When we agree a sale on a property the first thing I do is get him to check what the lender are for the sale price that will lend on my property.  I get the list of lenders names and then present them to the buyer, I recommend my broker to them as well.  Sometimes they use him, sometimes they use their own, either way I stress the importance that they use one of these lenders.

Top tip is keep your property on the market and keep doing viewings.  Explain to the buyers that as soon as they have the DIP in place from a lender that you know will lend on your property and the valuation has been completed then you will mark it as sold. I have learnt the hard way and had a few sales fall through because of this, despite me stressing that they must use a lender that will lend under 6 months.  It is only recently that I got the list off my broker and I am now testing the above on the sale of the below property:

I accepted an offer this week on the above property and have given the buyers the list of available lenders.  They have chosen one and now I am just waiting for the valuation to take place so that I know everything is good.

The property below is one where I did not do this, and the sale fell through around 4 weeks ago.  I am now struggling to get that initial amount of interest that you get once you first list, although I do have more viewings on it this weekend:

http://finniganmcneillprop.boards.net/thread/3/project-sell-modern-method-auction

 

Hope the above helps!

Darren

 

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