Any chance we could get the breakdown on costs? It’s clearly cost more than £6k. Even if you did do the actual refurb for £6k, what about auction/agent/solicitor fees and interest on this cash he has (which I’m assuming is someone else’s money)? I’d love to see that breakdown. £6k just can’t be right given how good the property looks. I’d love to be wrong….but come on, we weren’t born yesterday.
@glennbutcher6686
Ай бұрын
So you buy the house cash 80k. Add value to the property referb now worth 120k. Take your original 80k back using the 40k equity to mortgage the property. Then the tenant pays the house off in theory. Is this right …… 👍
@fling4206
Ай бұрын
Buy at 80k, then refurb might cost £10k-15k. New value is 120k. Then get a new mortgage (remortgage) based on the new value at 75% ltv (pull out 75% of new value 120k) 120k x 75% = 90k. He gets his original 80k back + 10k profit that isnt taxable bc it is a loan. Tenants pay rent and property cashflows
@glennbutcher6686
Ай бұрын
Thank you
@robertwest8300
17 күн бұрын
It’ll almost certainly be an interest only mortgage - which is perfectly fine as you’ll be build equity as house prices rise. In theory, so lone as the property makes money every month (even £1) it’s a solid model. You’re not losing any money and your investment value increases. Used to be easy to do this pre 2008 but now, you have to find something exceptional for it to stack up.
@narellecowanproperty
Ай бұрын
Yes Corey! 🔥
@dd-bj8by
Ай бұрын
What’s does he mean when he says bought it with cash?
@heyitsjack8051
Ай бұрын
Liquid. So no loan or mortgage just what money he had in the bank :)
@heynicky1109
Ай бұрын
Usually “cash buyer” means no mortgage. This could mean bridging finance or cash in the bank is being used. It means the buyer can move at a much faster pace and the sale can complete sooner.
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