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Advice: Am I living in a dream land?


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Hi guys so have been on this forum since April but been working on doing my first project since Dec last year.

  • Done some reading (thanks Rob And Rob ^_^ ).
  • Got my calculator sorted.
  • Got a big chunk of cash saved up (big for me anyway).
  • I am on a couple of property groups on Facebook and constantly bombarded with deals and sourcers. But cant find a decent sourcer or deal.

But I feel a little stuck. Even though I only got my cash together in July.

My situation is  - have about £25k and want to do a flip or two to build up capital. Trying to find deals around S.Wales (I live here) and not looking to do a huge amount of refurb. Thinking to get a commercial mortgage as a first time buyer through a company we set up.

Questions:

  1. Whats the benefit of putting it through a company? Have set it up as know we will need it for a few family HMOs (not mine).
  2. How do you source BMVs?
  3. Is there a place to find reliable sourcers?
  4. What advice would you give someone in my situation?
  5. Is trying to purchase a property for sub £100k and make 10-15k profit unreasonable?
  6. How long does it take to find a BMV? Is that like asking how long is a piece of string?

 

 

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Not to put you off but this is looking like a risky model - the main challenge being you really need to be a cash buyer to have a decent chance of getting BMV and making a profit on a flip at 100k without doing major refurb work.

  1. Whats the benefit of putting it through a company? Have set it up as know we will need it for a few family HMOs (not mine). No sipmple answer as it depends onn you personal tax situation, mortgage options and a bunch of other stuff. There are plenty of video/lessons on all the details about ltd versus not.
  2. How do you source BMVs? Very tough quesion with many answers - none easy - either pay a sourcer or do the hard graft
  3. Is there a place to find reliable sourcers? word of mouth so try and track down property groups/forums in your area
  4. What advice would you give someone in my situation? I think you need to do lots more research
  5. Is trying to purchase a property for sub £100k and make 10-15k profit unreasonable? it only works if you can buy BMV as 10-15k profit after paying tax/solicitors/agents/interest etc is not a lot and you are looking at 9 months from kicking of buying process to completing sale. Even harder if you are not prepared to do a major refurb with maybe a extenion or loft conversion as you have to add value to get the profit
  6. How long does it take to find a BMV? Is that like asking how long is a piece of string? This is really hard - especially if you are not a cash buyer - as there are generally more people with cash looking for BMV than supply so likely you will be at the back of the queue
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