Recently, I attended a networking event where like minded property enthusiasts meet up and share their expertise and tips on how to find the best property deals. As an agent attending this, our main aim was to find investors that would be interested in buying properties that require refurbishment or which are looking for a quick sale.
As expected this was what I found, however, the talk itself I found most surprising. The talk advised in depth on how to become a landlord, even if your credit rating is merely existing and have no financial backing whatsoever, calling it delayed completion. Basically, these landlords will seek out the people that are in a desperate need to sell their home, and they will do a deal with the vendor and agree to pay their mortgage for x amount of years. They will then tenant the property, therefore the tenant is essentially paying their mortgage off and the completion date on the sale will be stretched out for as long as possible. However, the part I still do not understand is if the buyer has no money and no ways of securing a mortgage…What happens if they do not find a tenant? And what happens if they do suddenly need to complete on the sale?
“Their are several risks you need to consider before entering into an agreement like this to sell your home, which can be found on the below website link:
What other options have you got?
If you’re considering one of these schemes because you’re struggling to pay your mortgage, look at these options first:
- ways of reducing your mortgage costs
- ways of controlling any mortgage arrears
- increasing your income and cutting your spending
- selling your home on the open market
- checking that you’re getting all the welfare benefits and tax credits you’re entitled to.”
It was also discussed the fact as a landlord you could always view properties through an agent, but then make direct offers to the vendor in order to secure a better deal for yourself. This suggestion to me, is simply appalling. Not only could this end up with the vendor in financial trouble with the agent depending on what contract they have signed, it is also in my opinion no way to do business. So if you are looking at accepting an offer directly, just double check your contract if you are currently marketing your property via an agent. I absolutely love my job and helping people get moved and to suggest cutting the agent out of a property sale when time and money has already been spent on marketing, I just simply do not understand.
All of these opinions are of my own, if you would like any further advice on buying or selling your home, please do get in touch on 0191 497 8310 or 0191 495 7888 and we are happy to provide a free and non obligatory valuation.