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  • Auction Tribe

    Paul Ribbons Property Trading via Auctions

    (28-01-2015 01:06 PM)Tassotti Wrote:  
    (28-01-2015 11:43 AM)anthony_ayton Wrote:  I assume thats the Clive Emson auction? I spent quite a lot of time looking in Ramsgate, Folkestone and Broadstairs at the end of last year. There were still some deals to be done. It doesnt surprise me that its becoming a bit bit more heated. Like you I get despondent when I go to a viewing and 30 other people are there. But many of them are not very serious (on refurbs - no notes no camera etc). For me personally I want a deal that looks like its full of problems that other people don't want to solve. Id be interested to know what you thought the property was worth in comparison to what it goes for.

    Yes, Clive Emson auction on 9 Feb, Lot 2

    As you described earlier, the deal would only just about stack up at around the guide price. Place needs new roof, central heating system installed, new electrics, damp treatment (including internal party walls), complete refurb. garden walls falling down, fees, etc.

    I have no doubt it will go at least 20K over the 105K guide.

    The other one I was supposed to view was Lot 6, guided at 70K. I dread to think what state this one is in.

    I note another house sold in the same st in 2014 at £167k Rightmove shows houses 1/4 mile around at £160k . I agree if it goes over guide it will probably be tight. Its a shame for you that it is listed as lot number 2, early lots tend to sell well in my opinion.

    having done the work, I hope that you bid and get a decent priceWink To get back to the original point every bad deal at auction is a good deal for the vendor. On that basis it stands to reason that people can and do sell old wrecks at auction for more than they could achieve on the High St.
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    Founder of Repolist Ltd, the UK's largest real time database of repossession and refurbishment properties.
    Find out more:
    RepoList Website

    (28-01-2015 05:21 PM)anthony_ayton Wrote:  I note another house sold in the same st in 2014 at £167k Rightmove shows houses 1/4 mile around at £160k . I agree if it goes over guide it will probably be tight. Its a shame for you that it is listed as lot number 2, early lots tend to sell well in my opinion.

    having done the work, I hope that you bid and get a decent priceWink To get back to the original point every bad deal at auction is a good deal for the vendor. On that basis it stands to reason that people can and do sell old wrecks at auction for more than they could achieve on the High St.

    Truth be told, I wasn't looking at purchasing any of the properties via auction.

    I want to be the one putting them in the auction.

    Was just checking out the types of properties and actually see it all happen before I do it myself.

    Now, if these places go for what I think they will, it's a strategy that I would like to persue.

    The Medway towns are ripe for this type of strategy, and only twenty minutes down the road from me.

    I don't believe it can done everywhere though, unless you are direct to vendor and buying BMV.
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    (28-01-2015 05:46 PM)Tassotti Wrote:  
    (28-01-2015 05:21 PM)anthony_ayton Wrote:  I note another house sold in the same st in 2014 at £167k Rightmove shows houses 1/4 mile around at £160k . I agree if it goes over guide it will probably be tight. Its a shame for you that it is listed as lot number 2, early lots tend to sell well in my opinion.

    having done the work, I hope that you bid and get a decent priceWink To get back to the original point every bad deal at auction is a good deal for the vendor. On that basis it stands to reason that people can and do sell old wrecks at auction for more than they could achieve on the High St.

    Truth be told, I wasn't looking at purchasing any of the properties via auction.

    I want to be the one putting them in the auction.

    Was just checking out the types of properties and actually see it all happen before I do it myself.

    Now, if these places go for what I think they will, it's a strategy that I would like to persue.

    The Medway towns are ripe for this type of strategy, and only twenty minutes down the road from me.

    I don't believe it can done everywhere though, unless you are direct to vendor and buying BMV.

    You don't have to be direct to vendor to purchase property with value in it. You have to view lots of properties and make lots of offers. Even on Rightmove you do not know the story behind the person selling the property. If you offered 20% under asking for cash on the 1,000,000 properties it holds you would have a large number of BMV deals on your hands. Asking prices are not always indicative of the price that people are willing to accept. Even on repossessions they will generally be marketed at the going rate. It is when you offer aggressively that you discover the price.

    PT Repolist has 5000 refurbishment properties and repossessions nationally if you are interested in flipping, it wont do the leg work for you, but its a great place to start.
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    Founder of Repolist Ltd, the UK's largest real time database of repossession and refurbishment properties.
    Find out more:
    RepoList Website
    (27-01-2015 05:57 PM)anthony_ayton Wrote:  ...now auction rooms are full of "property developers" with interior designing other halves, looking to do an Ikea flip and retire in April.

    Priceless Big Grin
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    (28-01-2015 09:30 AM)Tassotti Wrote:  There were 40 people viewing it that day !!!! There were five other days'viewings as well.

    (28-01-2015 11:43 AM)anthony_ayton Wrote:  Like you I get despondent when I go to a viewing and 30 other people are there.

    Im a property schizophrenic.

    When i see dozens of people at a viewing then yes maybe a bit of short term despondency is there as its all potential competition so i have to pay more in price maybe - but medium to long term it makes me happy to see so many people piling in to the worlds best asset. As that can only mean prices are on the up and the market is healthy and that means my portfolio capital value benefits even if i dont buy.

    If I turn up and no one else is there then I`m the other way around. Very happy that everyones is bottling. This happened in 2008 of course but then I shrug my shoulders thinking - well maybe I`m a a bit despondent that overall my portfolios capital value may take a dip for a while before going up again but hey my cash flow will rise when I bag this little rotter for a bargain. Swings and roundabouts

    There is always a positive to be found in property
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    Jonathan Clarke. http://www.buytoletmk.com

    It looks like he's only gone and done it. Idea

    I am looking at the Torquay Council Planning site,
    after a search on postcode TQ2 5PD for the hotel,
    and seeing

    Quote:Decision: 'Permission With legal Agreement'
    re change of use of hotel to form 10 flats.. communal
    spaces, 9 car parking spaces..............

    Decision Issued Date: Wed 21 Oct 2015

    +other scanned docs including a letter GRANT OF PLANNING PERMISSION, from Executive Director On behalf of Torbay Council, dated 21 October 2015.

    Big time. Impressed. I wonder if he, or they, will do the works themselves, or sell it on for a chunky profit?

    (10-07-2014 04:52 PM)Richard Greenland Wrote:  We just agreed the purchase of a 28 bed hotel in quite a nice part of Torquay, bought AFTER the auction as an unsold lot. It was a London auction and the receivers were hopeless, it was very badly marketed so none of the local developers even knew it was for sale. So we got the whole thing for £300K. The semi behind just sold for £280K and 2 bed apartments in front are selling at £300K+ so I'm satisfied we got a good deal. It should make 10x2 bed good-spec apartments, being conservative I'm attributing a value of £125K each to them as mostly they won't have the views afforded to the development in front. There is an existing small flat in the lower ground floor. I'm being cautious and it still works well at that valuation, but probably they'll be worth more. My cautious GDV is £1.3M but it could be as high as £2M. I don't really know the area and the comps are misleading, I'll have more of an idea when I see the agency manager and their planning expert on site next week.

    We intend to either put it back in a local auction with much better marketing, or have an informal auction using a local agent to contact developers on their list and ask them to make offers. I'm not sure if we'll need planning permission to sell. Hotels there aren't really viable any more, residents prefer apartments as they are quieter and many have converted already so I don't think it'll be a problem.

    The reason I'm so unclear on the detail is we had less than 48 hours from first hearing about it to exchanging contracts. There is a lot of money to be made if you can act very quickly and with cash, you need big balls to do that and you can't get distracted by detail. Whatever way you look at it, it's a deal at £300K so we bought.

    I think I can do this because I can be very clear sighted on the big picture when other people get distracted by the minutiae. But I'm not good on detail so I delegate that to other people. I have a great VA and my solicitor Richard Spencer worked around the clock on this, he did a sterling job and I'm very happy with the result.

    I think to be an entrepreneur you need to be a big picture person. Detail people tend to work for big-picture people. But some of the best entrepreneurs are big-picture AND detail.

    We could do the build-out but it would take a lot longer and be a lot more work, plus additional risk. I'd rather take a much smaller profit quickly than hang about for 18 months - 2 years to convert and sell all the units. It increases my effort/ reward and risk/ reward ratios considerably. Take a quick profit and find other deals rathe than spend too much time on this.
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