A lady came to Milton Keynes and made an offer on a property that we had for sale here. Although it was a cash offer, it turned out in the end that it was a cash offer subject to selling her house (the estate agents never told us that bit).
She had actually sold her house for 380k and the sale fell through. Eight weeks later, when I chased it with the estate agent to find out what had happened, I had found out that the sale had fallen through but they had found another buyer (again at 380k). Unfortunately, that sale also fell through.
The reason that it fell through was because, she lived in the property with her nephew and the property had been split into two flats. Both flats were unofficial as they were still on one title so nobody was able to mortgage it.
The property was in a state and I had somebody (a friend of mine) go and look at it. He negotiated the price down to 300k.
Her nephew also came up to Milton Keynes and offered on another property that we had on the market. For the two properties that they offered on, they offered a total of 285k. What we did, we exchanged contracts on their property for 15k and they exchanged contracts on both of our properties for £1. That meant that they had received the full 300k for their property (15k plus value of the two properties that wanted in Milton Keynes).
Together with JV partners, we then spent £112,000 doing the property up and we sold the two flats for £285,000 EACH (570k). Once we had sold the second flat, we completed on the two sales in Milton Keynes.
Everyone was happy, and myself and my JV investors made a nice tidy profit.
One JV partner received a percentage of the whole profit, he negotiated the deal and oversaw the whole project and I had another JV partner who funded the whole deal. To this day, I haven’t seen the property and the only involvement I had was structuring the whole deal.
We are are posting onto this blog on a daily basis.. you can register for the RSS feed by going to: http://www.glennarmstrong.com/blog/feed/
P.S. If you haven’t already signed up to my free 6 part video guide, you can do so by filling your details on the right.
To get your eight FREE videos simply pop your primary email address in the box below. After confirming your email, your first video will arrive in your mail box.
One thing, you will need to add my email address to your address book. By doing, this you avoid any of the emails I send you ending up in your spam folder. One final thing; I hate spammers. So I will NEVER share your email with any third party.